Messaging Layer (RFQ & OB)
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The Messaging Layer or Over-the-Counter (OTC) Quote System in PREMIA V3 is a vital component designed to enhance liquidity and efficiency in the options market. It provides multiple functionalities and opportunities for integrations such as:
Liquidity Provision: Enables vaults or market-makers to provide fillable option quotes to users, either on-chain or off-chain. This minimizes the fragmentation of liquidity across the exchange.
Just-In-Time Liquidity: Offers just-in-time liquidity mechanisms to vaults and market-makers, allowing for highly capital-efficient market-making for passive and active users.
Integration with Vaults: Specific vaults can use the OTC quote system to provide liquidity across the entire volatility surface, further decreasing liquidity fragmentation and increasing capital efficiency.
Volatility-Based Pricing: Professional traders can provide volatility-based quotes to takers without incurring EVM gas fees for managing on-chain liquidity positions.
Enhanced Liquidity Across Strikes & Maturities: Increases liquidity across different strikes and maturities, enabling professional market-makers to optimize both execution price and transaction fees.
Flexibility for Off-Chain Quotes: Market-makers can provide quotes to users or aggregators off-chain, which can then be fulfilled through the exchange, even composable with range orders.
Programmatic Trading: The Messaging layer is available via the Premia Blue app, Typescript SDK, and API (Auth Key & Docker for self-hosting). This allows developers to integrate Premia V3 into their trading systems and algorithmic strategies. For more information, see the Developer Center.
The OTC Quote System in PREMIA V3 bridges on-chain and off-chain activities, facilitating a more seamless and efficient trading experience. It is key in reducing liquidity fragmentation and enabling more sophisticated trading strategies.