Arrow Markets launches crypto options trading platform for non-US markets

The initiative seeks to fill a gap in the market, akin to the role Robinhood plays in the U.S. for stock options trading, but focusing on the defi sector.

Supported by Framework Ventures, Delphi Ventures, and Blizzard the Avalanche Ecosystem Fund, Arrow Markets is aiming to capture a significant portion of the defi options market.

The platform operates on Avalanche’s C-chain and introduces a Request-for-Execution (RFE) system that enhances the traditional Request-for-Quote (RFQ) approach by leveraging blockchain technology to ensure more efficient options pricing and reduce counterparty risk.

Arrow Markets’ system allows users to specify their price and slippage tolerances, enabling direct request submissions to the blockchain for matching. The process aims to eliminate unnecessary steps and optimize prices in scenarios of low liquidity.

“This means that market makers are exposed to far less stale quote risk allowing them to quote ‘tighter bid-ask spreads’ while allowing users to have control over how much ‘slippage’ they are comfortable over the reference quote. It’s a win-win for both sides,” Edward Mehrez, co-founder of Arrow Markets, told crypto.news.