Unlocking a Unique Experience with Rafaella Baraldo

Today on the Fortune Teller Podcast, we are talking with Rafaella Baraldo, Co-Founder of Pods Finance. Pods Finance provides users the opportunity to hedge their BTC, ETH, and other cryptos to protect portfolios from volatility.

Pods Finance is a simple way to hedge crypto assets on the Ethereum Network. The Pods Protocol is a decentralized non-custodial Options Protocol, allowing for traders to buy, sell and provide liquidity using our new Options AMM. Buyers begin by choosing a put option. The buyer can then take action during the 24-hour exercise window. During this time, the buyer exercises their right to sell, or the option expires.

Sellers locks stable assets as collateral. They then mint the equivalent put options. Sellers can then sell options for a premium, priced by the AMM. As with buyers, there is a 24-hour exercise window. Sellers may withdraw collateral if the exercise window has passed, or get the underlying asset if the option is exercised.

Pods' design uses DeFi's composability and makes it simple for other DeFi projects to implement the Pods Protocol. Pods are made for DeFi options, by unlocking a unique experience of earning while using the liquidity provision feature in an options pool. There are many special ways to interact with the protocol. Users can sell, buy, provide liquidity for both puts and calls, and determine which suits their needs.

Pods are incorporated in a grouping of non-upgradable smart contracts on EVM (Ethereum Virtual Machine) compatible blockchains. Binance Smart Chain or the Polygon Network are examples of EVMs.

Traders hold portfolios of volatile assets, cryptos, and need to hedge their risk to assure that they can keep their funds even in worst case scenarios. Using options orders in decentralized order books is costly, and the existing options are not liquid enough to cope with the gas cost on Ethereum.

Having options tokens as liquidity in Uniswap may equate to severe impermanent loss as it can only show the price based on a small number of inputs. Additionally, users may be unable to find reasonable market prices for buying or selling options in Uniswap.

Pods Protocol’s Options Instrument and Options AMM addresses these problems uniquely. The Options Protocol implementation needs the options to be fully collateralized, allowing options sellers and liquidity providers hedges at all times. Pods implementation uses an external price oracle to update the spot price of the underlying cryptos, along with an internal oracle to support the Weighted Average Implied Volatility.

The AMM pools are made and end within the option's lifetime, which is 24-hours. After an option enters the exercise window, trading stops, and users can only remove funds from the pool and exercise the options, as applies.

To learn more about Rafaella Baraldo, visit:
Company Website: https://www.pods.finance/
Instagram: https://www.instagram.com/podsfinance/
Twitter: https://twitter.com/podsfinance
YouTube: https://www.youtube.com/c/PodsFinance/featured
LinkedIn: https://www.linkedin.com/company/pods-finance/

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The Fortune Teller podcast is a discussion between industry leaders in blockchain and financial technologies. The podcast focuses on the development of blockchain-based financial services and outlines the current state of the industry and future predictions for the adoption of decentralized finance. Go to www.teller.finance/