What is Siren?

SIREN is a distributed protocol designed for the creation, trading, and redemption of fully-collateralized options contracts for ERC-20 tokens on the Ethereum blockchain. The protocol employs a permissionless model where individual market contracts are coordinated by a MarketsRegistry contract, ensuring continuous solvency through collateral locked in smart contracts. It tokenizes both the buyer’s side (bToken) and the seller’s/writer’s side (wToken) of the contract, allowing for secondary markets and facilitating easier interactions for traders and liquidity providers.

To enhance liquidity, SIREN features the SirenSwap Automated Market Maker (AMM), which utilizes a combination of a constant-product bonding curve and options minting for trading bTokens and wTokens without requiring additional assets in the pool. The protocol aims to streamline liquidity provision by eliminating the need for complex pricing formulas or oracle feeds, thereby simplifying the process for liquidity providers.