# Introducing Option Factory - Pods

**Published by:** [Untitled](https://paragraph.com/@0xcec5f538f6931ca29eb2b14259dc6ee16ec51341/)
**Published on:** 2022-08-08
**URL:** https://paragraph.com/@0xcec5f538f6931ca29eb2b14259dc6ee16ec51341/introducing-option-factory-pods

## Content

If you are thinking of building something that uses options as building blocks during @ethDenver, this is for you: Option Factory: https://factory.pods.finance The Option Factory makes deploying European or American physically settled options easy. You can choose between Kovan, Ethereum Mainnet, Polygon, Arbitrum, and BSC networks. More networks are coming! The options have embedded functions of Mint, Unmint, Exercise, and Withdraw. This instrument does not rely on Oracles or liquidation systems. Options help create new DeFi strategies. To achieve a more efficient portfolio, you can combine different types, maturities, and strikes. Please note that the option instrument logic does not connect to our AMM. You can use it to sell those options in any trading venue, like on a P2P basis via Airswap.Note that those contract have had 3 audits and have been battle tested for the past year.Examples of uses cases:Structured Products or Strategies (Covered Calls, Put selling, protected capital, and more)New ways of Token Vesting distribution (see here if you want inspiration)WalkthroughThere will be 3 main steps:Creating the optionAdding option to the Option ManagerManaging Option (Mint / Unmint / Withdraw / Exercise)Let's deep dive into detail in each step:Step 1 — Click on the Deploy optionGo to our homepage https://factory.pods.finance. On the main page, click on "Deploy option" button.Option Factory first screenStep 1 — Homepage + Deploy optionStep 2— Deploy OptionOn this screen, you need to select your option parametersOption Classification: Put or CallOption Exercise Type: European, that you can only exercise during a certain window period, or, an American one that you can exercise at any time.Name: The option Name that you want to give, usually, we use the pattern (Underlying:Strike — Strike Price — Maturity). Example: ETH:USDC — 3000–22 May 2022Symbol: Symbol of the option tokenUnderlying Asset: Usually the volatile asset, its the asset that the selling/buying right is referring to.Strike Asset: The asset that will be used to pay the strike price. Usually, we use stable coins as the strike asset, but you can also create ETH:WBTC options for exampleStrike Price: Number of units of strike asset that buys/sells 1 unit of the underlying asset. Example: ETH:USDC 3000. 3000 units of USDC gives you the right to sell or buy 1 unit of ETH.Expiration Date: The date of the option expiration.Exercise Window: How long the exercise window should last. Usually its 24 hours (86400 seconds) for European options. Leave it as 0 if the type is American.Is the asset an aToken (AAVE token)?: We support aTokens as collateral assets in this implementation, meaning that you can have aUSDC as collateral token, or aETH as an underlying token.Step 2 — Insert the details of your optionStep 3 — Getting the Option created addressAfter the option creation, you can copy the option address, you will use that address later in step 4.Step 3 — Copy option addressStep 4, 5, 6 — Adding recently created option to the Option managerGo to the third tab on the left menu, and then paste the address of the step 3 into the Option input, choose correctly the network that you have deployed, and then click on Search.Step 4, 5, 6 — Adding option address to be able to manage itStep 7. — Managing the optionIf the option address is correct, you will see the Mint, Unmint, Withdraw and Exercise tabs. There you can interact with the option that you have just created. Have in mind that selling, buying, and option pricing it's totally decoupled from this interface. You can decide where you want to trade those.Step 7 — Manage the option (Mint / Unmint / Withdraw / Exercise)About PodsPods is a decentralized non-custodial options protocol. Users can create options and trade them through an Options AMM on the Ethereum Blockchain. Pods is the easiest way to hedge crypto in DeFi. We invite you to take the first step in your new mission: **start testing the app on **app.pods.financeJoin the Pods communityapp | website | documentation | blog | twitter | youtube | telegram | discord

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