Overview
The Milopt Protocol is a decentralized options exchange on Solana enabling trustless trading through smart contracts.
🎯 What It Does
Three Core Functions:
Create Options
Buyers purchase options using cryptographically signed quotes
Manage Collateral
Market makers deposit assets into secure on-chain vaults
Settle Automatically
Assets transfer automatically when options are exercised
🏗️ Key Components
Seller Vaults
Market makers deposit collateral (SOL, WBTC, USDC)
Automatically locks when options are created
Released on expiry or exercise
Option Contracts
One contract per option
Stores strike, expiry, premium, status
Only buyer can exercise
Quote Verification
Market makers sign quotes with Ed25519
Smart contract verifies signatures on-chain
Prevents unauthorized quotes
🔄 How Assets Flow
1. Market Maker → Vault
(Deposit Collateral)
2. Buyer Creates Option
├─> Premium: Buyer → Market Maker
└─> Collateral: Locked in Option Contract
3. Buyer Exercises
└─> Settlement: Automatic Asset Transfer🔒 Security
✅ Bounded Replay Protection (BRP) - Prevents quote reuse ✅ Ed25519 Signatures - Cryptographic proof of authenticity ✅ Program-Controlled Accounts - Only smart contract can modify states ✅ Automatic Locking - Collateral secured while options are active
💰 Supported Assets
SOL
Native
Underlying asset
WBTC
SPL Token
Underlying asset
USDC
SPL Token
Premiums & strikes
📚 Learn More
How It Works → Step-by-step flow
Option Types → CALL vs PUT
Smart Contracts → Technical details
Glossary → Key terms
Last updated