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# System prepended metadata

title: Option Discovery Pools (ODPs)

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# Option Discovery Pools (ODPs)

I've long believed LBPs are the key to expiring options AMM liquidity, if you've been tossing an ideas on that front would be interested to hear more

essentially options dont work well on AMMs because the prices degrade to 0 over time as they approach their expiration out of the money, or they track in the money price.
This makes most options markets P2P, or Hegic which makes the options and the AMM the same thing. 

This would somewhat approach hegic but as a higher layer platform for Options minters to sell on. 
Most options layers now do weekly options that they sell at the start of the week with imo an inefficient and manual process between offchain entities such as Ribbon (sell in telegram chat). 

But if you can start at initial fair pricing and drift the price down it can simulate approaching 0 over time as the AMM wants to hold less of them. 
or be influenced by an oracle to then stimulate additional movement of the weight based on current price, which could have its own sort of defined repricing curve 
this could allow more buyers to enter the market who maybe don't have the time to attend a Ribbon options auction on telegram at a specific time, as the AMM would allow a broader range of participants to enter, and could allow options sellers more ability to exit prior to expiration through a liquid market rather than being locked in illiquid each week through a manager