About CLAMM (Concentrated Liquidity Automated Market Maker)
Stryke (previously Dopex) v1 on Arbitrum introduced decentralised options trading, which functioned well, gained reasonable popularity, and fostered a supportive ecosystem around the protocol.
Despite its success, we identified certain limitations in its initial design, particularly related to liquidity fragmentation, capital efficiency, user-friendliness, and composability.
The Stryke Update
Stryke represents a significant upgrade to the protocol, featuring two main components:
- Concentrated Liquidity Automated Market Maker (CLAMM) [Live] - Enhances liquidity by utilizing positions similar to Uniswap v3, allowing for better use of inactive capital and providing higher returns.
- Options Automated Market Maker (OAMM) [Coming Soon] - Supports single-sided cross-collateral staking, enabling liquidity providers to earn option premiums with reduced risk.
These modules operate together to enhance deep liquidity for options and align incentives for liquidity providers. Key advantages include:
For Liquidity Providers:
- Option to utilise CLAMM for increased yield.
- Single-sided staking (earn premiums with hedged risks.)
For Option Traders:
- Quick purchasing & selling options.
- Close positions anytime (i.e. American-style options.)
- Capital efficiency through portfolio margin.
- Simplified, one-click option strategies.
This section of Stryke Learn will detail the functionalities of CLAMM & OAMM and their integration within the platform.
