What is Siren?

Siren is a distributed protocol that facilitates the creation, trading, and redemption of fully-collateralized options contracts for any ERC-20 token on the Ethereum blockchain. It allows traders to buy or sell assets at predetermined prices and times, providing mechanisms for hedging against price fluctuations or speculating on these changes. The protocol operates without the need for oracles, utilizing a MarketsRegistry contract to manage individual markets, ensuring collateral solvency at all times.

The protocol tokenizes both sides of the options contracts, allowing the issuance of bTokens for buyers and wTokens for sellers. This design creates opportunities for secondary markets, enhancing liquidity through its custom SirenSwap automated market maker (AMM), which employs a constant-product bonding curve for trading. The AMM requires no asset pools beyond the bTokens and wTokens, promoting capital efficiency for liquidity providers. Established by a core team aiming for simplicity in Ethereum and decentralized finance, SirenSwap operates without complex pricing formulas or oracle feeds.