Stochastic.Finance documentation
Stochastic.Finance is a permissionless options protocol on Base mainnet. Anyone can mint an option by posting USDC as collateral, trade either side of it against USDC on the protocol's AMM, and settle it against a Chainlink price at expiry. There is no order book to fill, no market maker to quote you, and no account to open.
Two things make it unlike other on-chain options protocols:
- Both sides of an option are tradeable tokens. Minting produces a long leg and a short leg, each an ERC-1155 token you can sell independently.
- Payoffs are fractions of collateral, never leveraged claims. An option can only ever pay out of the USDC that was posted against it, so the protocol cannot end up undercollateralised.
How the pieces fit together
Two contracts do the work:
SF Options is an ERC-1155 contract. It holds every participant's option balances and all of the USDC collateral backing them. You mint into it, and at expiry you exercise against it. It is the sole counterparty to every position — there is no bilateral matching between a specific buyer and a specific seller.
SF Swap is a Uniswap-V2-style AMM, one pool per option leg, always paired against USDC. It is how an option leg turns back into cash before expiry. Its fee is dynamic: it rises as the pool price drifts away from the model price, which is what protects liquidity providers on an asset whose fair value moves every block.
Who you are
| If you want to… | Read |
|---|---|
| Take a directional or leveraged position | Trading options |
| Write options and collect premium | Minting options |
| Earn fees by seeding a pool | Providing liquidity |
| Understand what you'll be paid at expiry | Payoff & pricing |
| Verify the deployment yourself | Contracts & addresses |