noToken, or Neuron Option Token, is the ERC20-compatible contract representing an option product.
All noTokens have eight decimals, and the name and symbol of an noToken are determined by the underlying asset, strike, collateral, expiry, and strike price.
noTokens can potentially be traded on any DEX due to being ERC20-compatible.
| Token | Decimals |
|---|---|
| noToken | 8 |
| USDC | 6 |
| WETH | 18 |
When minting a noToken, the user can choose from a selection of collaterals to provide. This brings flexibility and a degree of diversification to using on-chain options.
Yield-bearing
Options at Neuron can actually be yield-bearing in addition to pure options' profit potential: users can mint options using Curve liquidity deposits as the collateral.
{% hint style="success" %} Each week, yield-bearing collateral grows by a bit in comparison to the 'raw' token. In addition to, well, yields - this mitigates risks when HODLing long-term, too: the collateral is growing and auto-compounding! {% endhint %}