Aptos Options Protocol

Decentralized European-style options trading protocol on Aptos with cash-settled BTC/ETH options and Pyth oracle integration.

Overview

Enables trading of European call and put options for BTC/USDC and ETH/USDC pairs with cash settlement in USDC. Uses full collateralization to ensure solvency, Pyth Network for real-time price feeds, and Black-Scholes pricing with historical volatility for on-chain options valuation.

Options are cash-settled at expiry with no underlying asset delivery required. Writers must lock collateral (125% of maximum loss) when opening positions.

Tech Stack

• Smart Contracts: Move (Aptos blockchain)
• Oracle: Pyth Network (spot prices and volatility data)
• Frontend: React + TypeScript + Vite
• Wallet: Aptos Wallet Adapter

Build & Run

# Smart Contracts
aptos move compile
aptos move test
aptos move publish --assume-yes

# Frontend
cd frontend
npm install
cp .env.example .env  # Add Aptos API key
npm run dev

Contract Architecture

Module	Description
options.move	Main entry point (buy, write, settle)
series.move	Option series lifecycle and registry
collateral.move	USDC vault with deposit/withdrawal/locking
settlement.move	European-style cash settlement engine
oracle.move	Pyth integration for prices and volatility
margin.move	Collateral requirement calculations
pricing.move	On-chain Black-Scholes implementation
types.move	Core data structures

Settlement Flow

1. Writing: Writer deposits collateral → Vault locks funds → ShortPosition created
2. Buying: Buyer pays premium → Premium to series pool → LongPosition created
3. Settlement: After expiry → Oracle provides price → Payout calculated → Positions consumed

Collateral Requirements

• Call Options: max(spot, strike) × amount × 1.25
• Put Options: strike × amount × 1.25

License

MIT