War of Coins is a cutting-edge DeFi options platform that supplies fast-paced and simplified options trading for cryptocurrencies. Our platform allows you to step into the world of low-risk, high-reward trading with ease. Whether you're a seasoned trader or a beginner, War of Coins offers a user-friendly and stimulating experience that will take your trading to the next level.
The War of Coins Arena simplifies the options trading process by focusing on the basics, offering traders the opportunity to earn substantial profits with limited risk. To participate, traders only need to choose the direction in which they believe the price will move and determine the value of their purchase. At maturity, our smart contract automatically evaluates the trade's outcome and credits the trader's account with the returns, which can reach up to 100 times the purchase amount. Our innovative payouts are made possible by our sophisticated pricing engine, which calculates future prices based on historical price fluctuations and market volatility, creating fixed return ratios ranging from 2 to 100 times. At War of Coins, we've streamlined the options trading process, making it accessible to all, regardless of their level of experience.
With War of Coins, you can feel confident in your options trading endeavors.
Experience the thrill of fast-paced and entertaining options trading with War of Coins Arena. All options mature in 90 minutes or less, providing instant gratification and keeping the process engaging.
With low risk and high profits, you have the potential to earn gains up to 100 times the amount of your purchase while limiting your risk by the purchase amount you choose.
Our platform is extremely simple to use, requiring you to only choose the direction of the cryptocurrency price - up or down. As the price moves further in your chosen direction, your potential profit increases.
At War of Coins, we prioritize transparency and fairness. All purchases, prices, and payouts are committed to a public blockchain via smart contract, ensuring that the process is quick, transparent, and cannot be modified.
Our advanced pricing engine calculates the probability of future price movements in a short time period, providing you with accurate information to make informed decisions.
Our automated market-making system serves as an automated option writer with no need for collateral and provides 100% guarantee of position coverage based on pool size.
Battle it out with your choice of coins with our fast-paced, simplified options trading platform! Act fast for big rewards as the earlier you make your move, the higher the possible payout can be. Simply choose the direction that you think that the price would go, and the payouts can go up to 100x! So, strike while the iron is hot!
Step 1: Choose your cryptocurrency.
Select from our list of popular cryptocurrencies and see the potential profits available. The list of tradable currencies will be updated so be sure to check back often! Once you've selected your currency pair, like ETH/USDT or BTC/USDT, you'll be presented with a live price chart of the chosen pair.
Step 2: Decide on the price direction and review the profit table.
Make your prediction. Based on the live price chart and other trusted sources of information, you'll decide whether the price will go up or down. Unlike traditional options contracts, there's no need to pick a specific price level - you'll be rewarded as soon as the price moves in the right direction. But wait, it gets even better! The further the price moves in that direction, the higher your reward can be - up to 100 times your purchase amount.
Once you've made your decision, you'll be presented with a guaranteed payout table that explains the payout structure based on price movement.
For example, if you were presented with the following payout table:
The potential payout for the ETH option depends on the price at maturity. If the price reaches 1,513.59 USDT, the payout will be 100 times the purchase amount, while a price of 1,432.40 USDT will result in a payout of only 10 times the purchase amount. If the price does not increase above 1,403.00 USDT, there will be no payout. However, the maximum payout is subject to change based on the current AMM risk exposure, which will be determined and confirmed in the next step.
Step 3: Select the purchase amount and commit to the transaction.
Decide on the amount you want to wager, and the price ladder in the payout table and max payout will be fixed at the moment your transaction is confirmed and committed to a public blockchain via smart contract
Step 4: Watch the action.
This is where the excitement really begins. Observe the performance of your chosen cryptocurrency in real-time on a chart to see how the price is moving toward (or away from) its price ladder. Remember, only the price at maturity matters, so stay tuned until the end.
Step 5: Collect your profits, if you win.
If you win, there's nothing to worry about - payouts are automatically handled through smart contracts, so all you have to do is sit back and enjoy your earnings!
War of Coins offers an advanced option pricing model that has been meticulously developed and tested by our team to revolutionize short-term trading strategies. With War of Coins, traders can trade with confidence, knowing that their trades are backed by advanced technology and smart risk management policies.
Our pricing model is designed to translate historical fluctuations in cryptocurrency prices into profit ladders, ensuring accurate pricing for our users. To ensure accurate pricing, a price oracle is integrated into our platform, collecting quotes from major cryptocurrency exchanges.
All transactions on War of Coins are handled by a smart contract working on a public blockchain, ensuring transparency and immutability. The smart contract records all purchase conditions, such as the amount and price ladder at the moment of purchase. At maturity, the smart contract calculates profits for recorded transactions based on the recorded prices.
Our smart contracts also implement risk management policies and rules, ensuring that all purchases are guaranteed by the liquidity pool. Additionally, our contract will not accept purchases that require profits that exceed the amount of funds allocated from the liquidity pool for the session. The maximum payout for each purchase is determined by the smart contract based on risk exposure status, ranging from 2 to 100 times.
NOTE: Refer to Appendix A for more details about the options pricing model.
Attention all warriors of wealth! Are you ready to take your coin-collecting skills to the next level? Join the mighty War of Coins Legion and unlock a world of additional rewards!
Whether you purchase or earn your membership rank, the power to upgrade and conquer is in your hands. And the best part? You can team up with your fellow legionaries by referring your friends and climbing the ranks together, all while earning epic rewards along the way!
There's more than one way to earn! It's a win-win situation for all legionaries!
Are you ready to boost your rewards to the max? Every time someone purchases a War of Coins Legion membership through your referral link, you'll receive additional War of Coins tokens (WARC) to add to your wealth! And if you're aiming for the top, aim for the highest legion rank to unlock up to 50% more in token rewards!
If you thought earning rewards through the War of Coins Legion was exciting, wait until you hear about the Trading Profit Bonus! The more you and your army of traders buy and sell, the bigger the bonus pool grows, and the greater the rewards you can earn! The bonus pool gets distributed based on your referral position, so the more traders you refer, the bigger your piece of the pie!
The higher the legion rank, the greater your potential rewards become. You can always strive for the next level of glory by upgrading your legion rank at any time. As you climb the ranks, you unlock access to higher reward tiers!
War of Coins is a DeFi product that utilizes the Automatic Market Making (AMM) protocol which operates with the aid of liquidity pools and comprehensive risk management. The liquidity pools will be made public with certain rules and conditions, all participants gain the opportunity to earn passive income via dividend and pool value appreciation.
War of Coins employs a sophisticated risk management strategy to ensure the potential payout of our users' positions. The allocated fund for each session is divided into several slots, each corresponding to various maximum payout levels, such as 100, 50, 20, 10, 5 and 2 times. The value of each slot is proportional to the maximum payout level, with the highest payout slots allocated more funds. For example, if the 100 times slot contains 1 million USDT, the 50 slot should contain 0.5 million, and the 2 slot should contain 0.02 million. Each slot can accept orders up to a total amount of 10K USDT.
The system begins each session with the 100 times slot active, and once the total purchase amount for that slot is exhausted, the system will switch to the next lower payout slot, corresponding to a new maximum payout level. For instance, when the 100 times slot is depleted, the system will move to the 50 slot, and the maximum payout will reduce to 50 times for the new purchase.
In each session, there are maximum allowed single and total purchase amounts that apply to each user, which can be configured depending on the session's fund size. Our system continuously monitors extreme volatility and sudden price movements, which may indicate unusual price movements from the engine model's perspective. In such cases, purchases will be halted to protect both users and liquidity providers.
Through our robust risk management policies, War of Coins ensures that all purchases are backed by the liquidity pool, providing a safe and secure trading environment for our users.
To ensure that the War of Coins system maintains sufficient funds to payout users at the time of option maturity, liquidity pools have been established and are carefully managed. Each option's underlying asset has a corresponding pool, such as ETH, Bitcoin, etc., and these pools are distinct from one another.
Initially, War of Coins will exclusively offer liquidity pools that are comprised of stablecoins, such as Tether (USDT). This means that users who purchase options with USDT will receive payment in USDT, regardless of the type of underlying asset for the option.
By staking WARC, users can earn interest returns on their investment, similar to earning interest on money in a savings account. The interest earned comes from the WARC operations pool, which provides rewards to stakers. The current interest rate is set at 0.02% daily, which translates to an annual return of approximately 7.3%.
In order to minimize risk exposure, the liquidity pool is designed such that only a portion of the total funds is allocated for active sessions at any given time. This ensures that the liquidity pool is never fully exposed to risk. While this may reduce the available liquidity for each session, it also guarantees continuous operation of the system, even if one session encounters the maximum payout.
Token Name: WARC.
Total supply: 1B.
NOTE: Refer to Appendix B for more details about the tokenomics.
Options trading is often seen as complicated by many people due to the use of technical terms and formulas. This type of trading is usually associated with experienced traders. However, buying an options contract can be a simple process. You just pay a small amount upfront and hope for a big payout if the price of the underlying asset changes in your favor.
The War of Coins game simplifies options trading even further by offering fixed payouts of up to 100 times the options purchase price. Users just need to predict whether the price of the underlying asset, like ETH/USD, will go up or down, and decide how much to pay. The system then generates a ladder of price points that trigger possible payouts, ranging from equal to the purchase amount to 100 times higher. The best part is that users don't need to choose a specific price point like in traditional options trades. They just need to pick the price direction they think the asset is headed and collect their reward if they're right. The more the price moves in their favor, the bigger their reward.
In order to make the War of Coins game more thrilling and user-friendly, it emphasizes on ultra-short timeframes. Each option contract will mature every hour, and trading will be available 90 minutes prior to maturity and will cease 30 minutes before the maturity time (possibly even less in the future, as improvements are made).
The following chart helps to explain this concept. Let's say a user believes that the current ETH price, which is $1,400 in this example, will increase. The curve on the chart shows the probability density graph of the underlying model. The shaded area beneath the curve represents the probability of the price reaching a certain level, which is calculated based on the payout ladder. For instance, if the user wants to qualify for a payout that is five times higher than the purchase price, the price of ETH at maturity, which is two hours away in this example, must reach at least $1,430.53. If the price surpasses $1,467.03, the user will receive a payout that is 20 times the purchase price and so on.
The table below illustrates the evolution of the price ladder during the lifespan of the option. At the start of trading, the prices will be at their peak. In order to receive the 5x payout, the price needs to reach $1,437.48 (a $37.48 increase) within three hours. After an hour of trading, this price will decrease to $1,430.53 and by the time trading ends 30 minutes before maturity, it will have dropped further to $1,415.18.
In order to provide attractive payouts within a short timeframe, a reliable volatility model is necessary. We have developed such a model by analyzing a 1-minute historical data snippet of the ETH/USD rate from coincompare.com. The analysis was conducted over a period spanning from July 27, 2002, to September 22, 2002.
Let's first check how the standard deviation absolute returns behave over various periods.
Absolute return is defined as r(t) = ln(S(t)/S(0)), where S(t) is the asset price over time t.
To conduct this analysis, we calculated the changes over various time periods ranging from 5 minutes to 90 minutes and determined the standard deviation for each of these series. It is expected that the standard deviation will be proportional to the square root of the period. The table presented below shows that the standard deviation normalized by the square root of the period is quite similar to a constant value, and we will be using this assumption in our model.
To make short-term pricing models, it's crucial to estimate the standard deviation (volatility) for the upcoming period. Although the standard deviation over a long period can be helpful, we use a 2-period model that combines short-term historical volatility over a few hours with long-term historical volatility, specifically over 2 months.
We have analyzed the behavior of the standard deviation calculated over various time intervals of 2, 4, and 6 hours. However, the results indicated that there was too much fluctuation in the 2- and 4-hour data, leading us to choose the 6-hour period for short-term volatility assessment. The chart below demonstrates the noise present in the 2- and 4-hour data, highlighting the more stable trend observed in the 6-hour period.
The subsequent chart illustrates the 6-hour volatility during a 16-day period. However, there appears to be a significant amount of noise in this data since most of the changes in volatility are short-lived and likely caused by isolated events, rendering them less useful for prediction. As a result, we have opted for a combined volatility estimate, comprising 33% of 6-hour volatility data and 67% of 2-month volatility data.
Finding an appropriate model to describe the distribution of fluctuations in absolute returns r is our next task. The commonly used models like Black-Sholes rely on the geometric random walk assumption, which implies that r follows a normal distribution. For longer periods, it is not unreasonable to expect that the distribution will converge on normal because longer-term changes in r are a sum of many changes over smaller periods, and the central limit theorem suggests that the resulting distribution will eventually converge on normal.
To model volatility for the short periods we're interested in, the assumption of normality is not suitable. Instead, we have found that Student's t-distribution is more appropriate due to the small number of significant events driving price changes, and it also accounts for the "fat tails" effect which is essential in calculating the probabilities of higher payouts for short periods.
To summarize, we have developed a pricing model for short-term cryptocurrency options trading. The model consistently achieves higher accuracy and lower premium than the targeted ones and has the potential to extend the trading period up to the remaining 30-minute cut-off mark. The model includes a set of tunable parameters for data sampling and volatility calculations, which can be adjusted in real-time to optimize performance based on real market movements.
Tokens owned by WARC team members and rewarded to members are unlocked with the following terms:
Starting from the unlocking date, tokens are released proportional weekly, over the course of 18 months.
Users who make option purchases will get WARC rewards with following mining parameters:
1. Maximum rewards per session.
Example: 10000
Given the total WARC for mining is 600 million, 24 sessions a day, rewards will last
for 600M/24/10000 = 2500 days
2. WARC reward ratio table:
Example:
The first 20,000U purchase: 20% ratio, total 4000 WARC.
Purchase from 20,001 to 50,000U: 10% ratio, total 3000 WARC.
Purchase from 50,000U to 110000U: 5% ratio, total 3000 WARC.
Purchase from 110,000U: no reward.
3. Both parameters are subject to adjustment according to the operation status.
Liquidity providers need to stake WARC to join the liquidity pool.
For example, given the staking ratio of 1, user will need to stake 10,000 WARC to be qualified to deposit 10,000U into the liquidity pool.
The future ratio adjustment depends on mainly 2 factors, the size of the liquidity pool and the price of WARC.
Staked WARC also earn interest returns in WARC like money in a savings account. The interest comes from the WARC operations pool.
For example, initial interest rate is set to 0.02% daily, roughly 7.3% annually.
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