Where does the name come from?

Oiler historically is a person working on an engine of an industrial mechanism. It is a tribute to hard working protocol engineers and builders. It is also a word play on oil (Ethereum gas), and Euler name. It combines tireless engineering work, gas trading and mathematics behind finance.

Instruments

While we are waiting for EIP-1559, Oiler delivers the initial set of instruments — binary options for hashrate, block gas limit and block times. They are fully collateralized — each option contract locks 1 USDC until option expiry or exercise (whichever comes first). Important thing to notice is that Oiler does not deliver a ‘gambler’s type’ binary options that have the strike price set at the current market price (so you would only bet about the direction of the price move at the given moment). Oiler delivers binary options in the format as they are known in TradFi — the strike price is set away from the current market price and the holder of the option receives a 0 or 1 USDC payout depending on whether the strike price is reached before the expiry. Because of this 0 or 1 payout, the binary options are also called digital or cash-or-nothing options.

Option Types

Based on price movement direction and the behaviour around the strike price:

Based on the behaviour dictated by the underlying:

Oiler Network OIL

Historical Data for Oiler Network