Arrow Markets (ARROW) Price

Eligible users who deposit ARROW in the staking contract can earn token-emission rewards while their tokens are staked; some of these rewards are funded by platform revenue. The current reward described is earning more ARROW. Distributing a share of collected fees according to the amount and duration of a user’s stake is a future arrangement, not an established current reward.

With a regular unstake, users withdraw their tokens from the smart contract and enter a 90-day hold period during which no rewards are paid. Users can avoid that wait by unstaking immediately, but must pay a 30% fee.

After a user submits a request for quote, market makers provide reference quotes at a regular cadence. The user selects the option parameters, sets a slippage tolerance, and requests execution. Market makers are then notified through an API and given a specified period to quote the options contracts. Once a quote is accepted, the system selects the best quote, creates the options contract on-chain, and transfers the funds to the market maker.

Only designated market makers can provide quotes in Arrow’s RFQ process; users generally cannot quote. Coverage may also be limited to particular strike prices, a range of expiration dates, and a small number of underlying assets.

After an options chain expires, Chainlink Automation nodes call the ArrowPositionManager contract’s initSettlement function to begin calculating the total assets and liabilities of the expired options. Users can then initiate settlement. After initSettlement has run, users holding options that expired in the money can settle their positions and claim payoffs. Eligible users claim payoffs from the market maker that sold the position, and payment is made in stablecoins. After the claim, the user’s corresponding option balance is set to zero.

When initSettlement is called, the contract counts the stablecoin balance and the value of positions as total assets; the positions are unwound and converted into stablecoin units. Total liabilities are calculated for each strike price by multiplying the difference between the settlement price and strike price for in-the-money options by the number of outstanding contracts at that strike, then summing across strikes. If funds remain after liabilities are paid, the surplus is transferred to the market maker. If funds are insufficient to cover the payoff, the market maker must provide the shortfall. If the market maker’s stablecoin balance is still insufficient, its entire balance is paid to the user and a corresponding amount of the user’s options is deducted.

The fee for each options trade is 0.09% of the underlying notional and is collected in USDC. The calculation is based on the underlying’s notional amount, and the payment asset is USDC—not ARROW.

Arrow creates a new options chain for each unique combination of expiration date and underlying asset. Within that structure, each unique strike price results in a new options contract.

The four listed options types available for purchase are CALL, PUT, CALLSPREAD, and PUTSPREAD. Examples of listed underlying assets include AVAX, ETH, and BTC.

A network of market makers handles pricing and hedging for Arrow options. Avalanche C-chain handles settlement, ownership, and transfers. Thus, the market-maker network is responsible for pricing and hedging, while the chain handles those settlement and asset-ownership and transfer functions.

For users with an externally owned account (EOA), opening an option begins with specifying order parameters such as expiration date and strike price. The user signs a hash of those parameters, then submits an API request to the server containing the parameters, hash, and signature. The described signing step applies when the user uses an EOA. After receiving the request, the server checks the parameters, prices the option, and submits the order to ArrowRouter on the user’s behalf, along with the market maker’s address and relevant quote information. ArrowPositionManager then uses the signature to verify the order parameters, market maker, position parameters, and originating EOA address.

In July 2025, the Arrow team said that it had discontinued ARROW’s centralized exchange listings because market activity and organic trading volume were low at the time, making the cost of maintaining the listings greater than the value they delivered to holders. At that time, Boost Rewards and staking were live. The team also described its design direction as generating value through usage rather than listings; this was a stated direction, distinct from the rewards and staking that were already live.