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Premia utilizes ERC1155 for the securitization of covered options contracts where the token collateral is locked up with the smart contract until either expiration, exercise, or early cancellation (if not sold). The Premia Options Minter was constructed to be able to write Options for any Token Denominated in either DAI/WETH/WBTC. By using the ERC1155 Token Standard we can verify that each option minted is uniform to all other like options of its kind i.e. maintain the same expiration/strike price and can be exercised for a like amount of of the underlying asset as deemed within the specifications of the options contract. To Address the lack of divisibility that the ERC1155 standard inherently holds, we have created a simple mathematical log function that maintains a low barrier to entry in writing options contracts that is set at the Token Level. Contract Values maintain a standard pricing range so that accounts of all sizes can participate, whereas in traditional markets all contracts are sold in lots of 100 shares per contract. The ERC1155’s inherent nature allows for multiple contracts to be written, transferred, traded, exercised, etc in one transaction, saving on gas costs and allowing for quality of life improvements for all platform users. Another benefit of the ERC1155 standard is that it allows for the minting of new contract types (as long as they fit within the standard specifications) without the need to deploy any additional code or smart contracts. The first contract will cost ~300k in gas to store variables in EVM Storage, with all concurrent options created costing ~100k gas per transaction. We believe this to be the best approach for end users in terms of usability and reduction in transactional gas costs. ERC1155 allows users to approve all Premia made options contracts via a single Approve All transaction if desired, so that as users continue to utilize the platform they are not subject to approval transactions for each new contract you may buy/trade/exercise, which can be burdensome and costly with other protocols.

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