plumetrade/plume

Plume is a decentralized market for trading options on tokenized stocks, meaning stock ownership represented as tokens on a blockchain, built on Robinhood Chain. People who hold tokenized stock can earn income each week by selling call options against shares they already own. Traders who buy these options get exposure to a stock's price movement for a small fraction of the stock's cost, with their maximum possible loss fixed at the moment they buy. The core design rule is that no option can be created unless it is fully backed by collateral first. A call option is backed by one full token of the underlying stock locked in the contract. A put option is backed by the full strike price in stablecoins locked upfront. This means there are no margin calls and no liquidations, and no one can ever owe more than what they already put in. The README explains the math behind this in detail and states it can be independently checked in the published smart contracts. Each option position is represented as a standard token that gets created when purchased and destroyed when exercised, redeemed, or closed, so positions can be held or traded like any other token. Holders can exercise their options at any time before expiry, based on a price feed with a 30-minute freshness requirement. If many option writers get assigned at once, the system splits it fairly across all of them using a method that keeps computing costs constant no matter how many writers there are. Plume charges two fees: 1 percent when an option is bought, and 3 percent only on winning payouts when an option is exercised. Both rates are capped by fixed limits written into the contract code, at 5 percent and 10 percent respectively, and collected fees go toward buying and permanently removing the project's own token, called PLM, from circulation. The README lists what users must trust: the price oracle feeds, the companies that issue the tokenized stock and stablecoins (which can freeze or seize funds), and the correctness of the smart contract code, which is fuzz-tested and under independent audit. The service is not available to users in the United States, Canada, the United Kingdom, or Switzerland.