10. What is underwriter token?

Each participant in the option underwriting pool is an Underwriter. Every underwriter holds a certain amount of underwriter token, representing the underwriter’s share of the underwriting pool that he/she contributes and owns. If you participate in multiple option underwriting pools, you will be holding multiple underwriter tokens in your wallet. Option Panda smart contract distributes option premium revenue to underwriter token holders on a pro rata basis. You can think of underwriting pool tokens as shares in the underwriting pool. Underwriter token is also transferable. You can trade it on decentralized exchanges like Uniswap.
For example, for the ETH call option underwriting pool, if all option underwriters have deposited 10,000 ETH into the pool, then 10,000 underwriter tokens(let’s call it “ETH-CPT”, which stands for “ETH Call Pooler Token”) will be issued to participating underwriters by smart contract. After some time, if the deposit and withdraw from the pool has caused a net outflow of 1,198 ETH, then 8,802 ETH will be remaining in the pool, thus only 8,802 ETH-CPT tokens will be left as well(1,198 ETH-CPT is destroyed by smart contract); if the deposit and withdraw from the pool has caused a net inflow of 1,198 ETH, then 11,198 ETH will be remaining in the pool, thus a total of 11,198 outstanding ETH-CPT tokens will be there(1,198 extra ETH-CPT is generated by smart contract).
Underwriter token has intrinsic value, it represents your share of an option underwriting pool. If you transfer your underwriter token to someone else, you lose your claim right to the underwriting pool’s asset. If you never participated in contributing to an option underwriting pool, but you’ve bought some underwriter tokens from the market(on Uniswap, for instance), you will have a portion of ownership of the underwriting pool and its prospective option premium revenue.
Simply put, an option underwriting pool’s underwriter token is a proof of ownership of the option underwriting pool.
Underwriter Token Address:
Call Option Underwriter Token
Put Option Underwriter Token