GasEVO: Tradable Forward Contract with GasTokenv2 as its underlying asset
April 28, 2020, 8:52 p.m.
Hello, my name is Sam Bacha and I am the founder ofa startup called Freight Trust. We have been working on progressing the dematerilization of shipping documetnts (bills of lading, warehouse receipts, etc) as it relates ot the commodities industry. Recently I have been working on what is called "Embeded Volumetric Optionality" In this work in progress of a paper below I lay out the facts of gas pricing in Ethereum, and draw a potential solution in a derivatives options contract based on a maturity dates in which gastoken is delivered to the purchasers wallet.
GasEVO is an embedded volumetric options instrument in which the underlying asset is technically
block_space but more specifically
GasToken. An exchange-traded instrument in which end-users can hedge against volatility in gas pricing during network congestion events (NCEs). As smart contract based wallets continue to proliferate along with Gas Station Relay Networks programmed ways of controlling gas pricing to compensate for the increases in pricing can be made. Additionally, we can examine market-oriented ways of establishing long term contract delivery times, such as an auction. Along with providing an auction we can have these options on the contracts in which GasEVO is auctioned off to a new set of options writers willing to take additional risk, giving us an "American Style" strike optionality on GasEVO.
Here is a link to the paper, still going through revisions. I would very much appreciate any and all critiques or questions about this, as we plan on bringing these to physical commodities in the very near future. Thank you.