⏳Comparison to options

The plETH token is similar to options in some ways:

• The unlock price is comparable to a strike price in options. In both cases, the derivative is activated at a particular price.

However, plETH has important differences from options:

• There is no expiry with plETH. The token is valid forever, and can be redeemed if the unlock price ever hits.

• With plETH, you are not buying an option to buy an asset. Instead, you are buying a token that is 1:1 backed by the underlying asset. The asset is made available to the plETH holder at the unlock price, without any additional payment.

Compared to options, plETH has the advantage that you just need to be directionally right when make your bet. There is no risk that your price target hits "too late" like there is with options.