What is Premia Finance (PREMIA)?
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🟢 The simple version
Plain English — no jargon. Start here.
Premia Finance is a DeFi options protocol on Arbitrum where v3 introduced concentrated liquidity for options — LPs define their own strike/expiry ranges, similar to Uniswap v3 tick ranges, for more capital-efficient option writing.
Concentrated liquidity options
In Premia v3, LPs specify exact strike and expiry ranges where they provide liquidity, concentrating capital in their highest-conviction areas. This mirrors Uniswap v3's concentrated liquidity model but for options. LPs earn more fees per dollar in their chosen range. ~100M PREMIA + vxPREMIA staking (non-transferable locked PREMIA for governance + fee discounts). Is PREMIA legal in India? Yes. 30% tax, 1% TDS apply.
🟡 A bit more detail
For when you want to go a little deeper.
Premia vs Hegic vs Lyra
Hegic: peer-to-pool (single pool, any strike/expiry, American). Premia v3: concentrated liquidity pools (LP-defined ranges, capital efficient). Lyra/Derive: Black-Scholes AMM with delta hedging. Premia is most sophisticated for LP capital deployment; Hegic simplest for buyers.
🟣 The full technical picture
For the technically curious.
Key facts
- Token: PREMIA (~100M) + vxPREMIA (staked, non-transferable)
- v3: Concentrated liquidity options (LP ranges)
- Chain: Arbitrum