what's Carmine Finance?

Carmine Finance is a decentralized finance protocol built on Starknet, specializing in options trading through an Automated Market Maker (AMM) model. It enables users to buy and sell European-style options contracts for cryptocurrencies, allowing for hedging against price volatility, portfolio protection, and speculative trading without intermediaries. The platform supports features like liquidity provision for option pools, where providers earn fees, and integrates with Starknet's low-cost, high-throughput Layer 2 scaling for efficient on-chain execution. Key mechanics include automated pricing via the AMM, which uses a constant product formula adapted for options to ensure fair value discovery. Users can trade calls and puts with customizable strikes and expiries, and the protocol extends to advanced tools like impermanent loss hedging and cross-chain trading bridges. Governance is community-driven, with plans to expand into real-world asset insurance and broader risk management solutions.

Carmine Finance, a Starknet ecosystem project, offers European-style options, listed by StarkWareLtd.