Siren Protocol was established in 2020, with its first version launched in March 2021. Siren Markets (abbreviated as Siren) is a decentralized options protocol that creates, trades, and redeems fully collateralized options contracts for any ERC-20 token on Ethereum. Its goal is to provide a flexible trading platform for advanced users while maintaining decentralized autonomy and composability. The Siren team believes that the potential of the cryptocurrency derivatives market is vast, with future trading volumes reaching trillions, and thus is committed to seizing this emerging market by providing secure and convenient on-chain options trading services.
Technology and Protocol Mechanisms
Siren adopts a fully collateralized design, relying on no centralized matching or additional clearing parties. The protocol tokenizes long and short positions of options contracts: buyers hold bToken (representing the right to buy call options or sell put options), and sellers hold wToken (representing the collateral assets that can be withdrawn when options are not exercised, or the execution amount after options are exercised). This design ensures that there are always sufficient collateral assets for contracts, allowing both buyers and sellers to exit positions at any time.
• AMM Market Making: Siren has a dedicated SirenSwap automated market maker built in for buying and selling bToken and wToken. This AMM operates using a constant product curve combined with the options minting mechanism, requiring only the holding of bToken/wToken to trade with underlying collateral assets (such as WBTC), thereby enhancing market-making capital efficiency.
• On-chain Pricing: The protocol uses an on-chain Black–Scholes approximation model for option pricing, eliminating the need for external price oracles, ensuring the decentralization and transparency of the trading process. To improve market quality, in August 2024, Siren also integrated data oracles from the Pyth network, further enhancing the accuracy of price data.
The above design allows any user to freely open positions or provide market-making without permission: to become a seller, one only needs to provide liquidity to SirenSwap, mint wToken, and join the market-making pool; to become a buyer, one just needs to choose an options contract to purchase bToken, and the AMM will automatically handle the collateral assets and payments.
The role and economic model of the SIREN token
Siren's original governance token was SI (with a total supply of 100 million). In 2024, the team announced a token migration and economic upgrade, introducing a new SIREN token. The new SIREN token has a total supply of 1 billion, with existing SI token holders able to exchange at a ratio of 1:7 (i.e., for each SI held, 7 SIREN can be exchanged), which means the overall supply will increase by 30% compared to before. The majority of the newly issued tokens will be used for community incentives and ecological expansion, and existing holders will not be directly diluted.
The functions of the SIREN token include: community governance, fee dividends, and staking rewards. Users holding SIREN can propose and vote on the governance platform to determine the protocol's development direction, new options markets, incentive programs, etc. A portion of the trading fees collected after the protocol goes live will be distributed to SIREN holders, forming continuous incentives. The SIREN token can also be staked to earn rewards: the protocol has reserved 40,000,000 tokens for staking incentives, distributed to stakers daily according to a predetermined ratio. In addition, 50,000,000 SIREN tokens are allocated to a community fund, jointly governed by token stakers to fund community initiatives. Overall, the SIREN token aims to continuously return value to users who actively participate in the protocol and guide community growth through mechanisms such as point incentives.
Overview of Airdrop Activities
Siren actively promotes through various marketing activities and has previously collaborated with exchanges to conduct multiple rounds of airdrops. In March 2025, when Gate.io launched SIREN spot trading, it initiated a HODLer airdrop event: users holding 1 GT token could participate and share in 2,000,000 SIREN tokens, attracting a large number of participants. At the same time, OKX exchange partnered with Siren to hold an airdrop promotion worth 30,000 USDT (from February 28 to March 7, 2025). Participants could complete designated tasks to earn SIREN tokens worth $20, with approximately 65,000 people signing up, and 1,500 users were randomly selected to share the airdrop rewards. In the Binance Smart Chain ecosystem, Siren also conducted promotions through platforms like PancakeSwap: participants had to complete tasks (for example) holding at least $10 in their wallet, trading on PancakeSwap, etc. Nearly 40,000 addresses participated, with 1,500 users drawn to share a $30,000 reward.
These airdrop activities are usually targeted at platform users and early community members, directing traffic and distributing SIREN tokens through simple tasks, thereby expanding project visibility and distributing tokens to actively participating user groups. Overall, Siren's airdrop strategy has helped attract tens of thousands of new users to the protocol and increased market activity.
Community and Ecology
The Siren community atmosphere is vibrant, with the official team interacting with users through multiple channels. The project has official accounts on social platforms such as Discord, Twitter, and Telegram, where community members can access announcements and discussions at any time. Additionally, Siren has its own governance forum (gov.siren.xyz), where token holders can propose and discuss protocol upgrade proposals. In the early stages, the project team also sought community feedback to ensure that the protocol's development meets user needs.
In terms of ecology, Siren is not limited to the Ethereum mainnet but is deployed across multiple chains. As of the third quarter of 2024, Siren has launched options trading markets on networks such as Arbitrum, BNB Chain (BSC), Solana, and Avalanche. In addition, Siren has collaborated with several DeFi projects: for example, it has integrated the LiFi cross-chain bridge, partnered with perpetual trading platforms Hyperliquid and Perennial for risk hedging, and introduced the Pyth oracle in 2024 to improve market quality. These collaborations and multi-chain deployments enrich the Siren ecosystem and provide users with more diverse trading opportunities.
In terms of community, according to analyst statistics, Siren has attracted tens of thousands of users, and members of major communities have a positive attitude toward the project. For example, media from the Binance platform reported that Siren's market value once exceeded $120 million and is currently stable in the tens of millions of dollars, noting its strong community consensus base. Overall, Siren has high community participation, transparent governance mechanisms, and extensive ecological cooperation, providing solid support for the protocol's development.
Current Development Status and Future Plans
As of now, Siren has entered the product iteration and feature enhancement stage. In the third quarter of 2024, Siren launched the public beta platform, allowing users to engage in real options trading in the mainnet Beta environment. The platform has released the first batch of options contracts and supports cross-chain trading. In August 2024, Siren also announced the integration of the Pyth oracle, enhancing the accuracy of contract pricing data. The community has been continuously testing the beta version and providing feedback, constantly improving the user experience.
According to the official roadmap, the next step is to officially complete the issuance of the SIREN token (TGE) by the end of 2024. At the same time, Siren will launch a perpetual contract module and cross-margin trading functions to enrich the derivatives offerings. In 2025, the team plans to introduce limit orders and stop-loss orders, support multi-collateral, and improve the cross-margin model. There are also plans to open some contract source code to enhance the protocol's transparency. Overall, Siren is rapidly iterating on technology and products, currently equipped with complete core functions for options trading, and will focus on introducing more advanced trading strategies and tools in the future.
New User Participation Guide and Risk Tips
For new users, it is recommended to follow these steps to start experiencing Siren: first, connect your Ethereum wallet (like MetaMask, WalletConnect, etc.) through the official application (such as app.siren.xyz) and prepare collateral assets (like USDC, WETH, etc.). Then, on the 'Siren Trading' interface, select the options contract of interest, set the strike price and expiration date, and you can purchase bToken; or provide liquidity through the 'SirenSwap' AMM, mint and sell wToken. Additionally, holding or staking SIREN tokens allows participation in community governance voting and receipt of staking rewards. The official documentation provides a detailed getting started guide, and newcomers can refer to relevant tutorials for step-by-step operations.
It should be noted that options trading involves certain complexities and risks. Although the Siren team emphasizes that its contracts have undergone multiple security audits and the code is open source, potential vulnerabilities cannot be completely ruled out. In terms of market risks, options may become worthless due to unfavorable price movements of the underlying assets; market makers may also face liquidity losses. Additionally, the DeFi market itself is highly volatile, and new protocols may have relatively limited liquidity in the early stages, all of which require careful consideration. We recommend that newcomers participate with small amounts, learn gradually, and ensure proper risk management: only use funds that can be afforded to lose, carefully study contract rules and fee rates, and pay attention to official announcements and community discussions.