Volare

Volare Finance, established in 2021, operates as a developer of a decentralized finance (DeFi) protocol tailored for the crypto options and volatility markets. The firm is dedicated to providing a transparent and convenient decentralized mechanism for options trading that aims to replicate the serviceability of centralized exchanges without intermediaries. The protocol was built by professional option traders to address complexities and credit risk issues typically found in traditional over-the-counter (OTC) options markets.

The company's business model centers on its Web3 options protocol, which supports a variety of products including European options, option combinations, and exotic options. This allows investors to engage in either standard or customized option strategy portfolios. Volare Finance provides clients with tools designed for hedging, speculation, and yield enhancement. The platform is built as a Layer 2 enabled DeFi protocol, which initially supported trading pairs like WETH/USDC and later expanded to include others such as WAVAX/USDC through its integration with the Avalanche blockchain. Revenue streams are derived from transaction fees, including opening fees and income sharing from users engaging in short and long positions, as well as from liquidations.

Volare has progressively updated its offerings, launching a testnet on the Fuji Protocol and later introducing Volare V2, which added features for options trading, strategy, margin, and liquidation. The company is developing V3, which will introduce perpetual options built on Uniswap V3, designed to offer greater liquidity and flexibility by removing expiration dates and allowing sellers to set their own exercise prices. A key feature of the protocol is its use of a decentralized order book aggregation engine to enhance the trading experience, moving beyond the capital inefficiency of some AMM models. Options on the platform can also be minted and traded as NFTs, a method intended to lower trading costs and improve liquidity.

In 2022, Volare Finance secured $6 million in a seed funding round. The round was led by Master Ventures Investment Management and included participation from a wide range of investors such as Digital Currency Group (DCG), Arrington XRP Capital, Huobi Ventures, and GSR Markets, among others. This capital was aimed at furthering the development of its options trading model within the blockchain ecosystem.

Keywords: decentralized finance, DeFi protocol, crypto options trading, volatility markets, European options, exotic options, option strategies, yield enhancement, hedging tools, perpetual options, decentralized exchange, Web3 finance, blockchain financial products, crypto derivatives, on-chain settlement, order book aggregation, Avalanche integration, NFT options, crypto asset management, financial software