Author: Will Yager 2018-12-27 12:47:57
Published on: 2018-12-27T12:47:57+00:00
In a Lightning-dev discussion, a comment was made about the creation of American Call Options through Hashed Time Lock Contracts (HTLCs). Two possible responses were given to this comment. The first response mentions that cross-asset brokers charge a standard option premium for their brokerage services and asks for clarification on whether the commenter thinks this is a flawed system or just unfortunate. The responder admits to not understanding lightning technology well enough to gauge the effects of any changes to the system.The second response discusses how cross-asset brokers require counterparties to issue them a symmetric but slightly more out-of-the-money call, which they can redeem in the event of a large FX swing. This allows them to limit their FX losses.Overall, the discussion centers around the use of HTLCs and their potential impact on the options market within lightning technology.
Updated on: 2023-06-02T16:24:26.625298+00:00