Information between option markets and underlying assets take longer to be reflected due to the relatively illiquid side of options trading compared to spot markets. An additional challenge is the lack of liquidity causing an increase of premiums in option prices. Options with relative low liquidity are expected to be relatively higher priced, also implying a higher volatility for these options.

Delta Financial plans to close this gap by using a combination of liquidity standards to deploy an on-chain options layer with scalability in mind, to meet the increase in market demand for permissionless systems.

Delta Financial is using a new open vested liquidity standard which takes the violent nature of price action within the cryptocurrency space into account. Furthermore, using liquidity which is based on a vesting schedule increases market certainty and opens up the possibility to secure a unique environment which promotes healthy options prices for a variety of different tokenized assets.