Exchange Layer (Base) Summary:  

Premia V3 is a non-custodial options settlement engine and an automated market-maker implemented for the Ethereum Virtual Machine.  

The pool market structure is a hybrid between limit order book characteristics and AMM characteristics, using range orders and linear pricing.  

LPS can set the market price with their deposits and create more competition in the market.  

Initializing a pool requires a fee that increases as a function of days to expiration, and there are guardrails in place to incentivize popular options.  

Split user accounting allows end users to control their long and short exposure by defining the assets that they put into the range order.  

LPs collect trading fees, with 50% going to the LP and 50% going to the protocol. 

There is also a gas cost associated with putting and cancelling range orders.