Was checking my Alpha points last night and something didn't add up.
I'd put in maybe 23 tokens worth of premium. The volume counter said close to 500.
Turns out that's not a bug. @TermMax 's volume page spells it out. Trading volume is tradingAmts minus whatever actually left your wallet, which basically means notional. They even publish a worked example with the tx hash on it. Long on an ESPORTS call, actual input 23.1, counted volume 496.9. Close the position and it counts again, another 490.3.
So one round trip on about 23 of premium shows up as roughly 987 of volume.
Being fair here. Options volume is measured by notional pretty much everywhere, that's just the convention. And most venues don't hand you the formula plus a hash to check it against. That part is better disclosure than I expected.
But the number you're farming and the number leaving your wallet are about twenty times apart.
Then I noticed the same thing one level up.
Token Terminal had @TermMax at #2 in daily active addresses among lending protocols back in March, behind only Aave. DefiLlama has it around #36 by TVL. Neither one is wrong. One counts people, the other counts money.
The fees live on the small side of that gap. 7% of premium to open or close. Take profit fee charged on notional, 1.9% at the start, shrinking as maturity gets closer. Financing that ticks per second, also on notional.
TGE is on the 25th. This is the bit I keep circling back to.
Activity gets reported in addresses and notional. Revenue and float get reported in dollars and tokens. I couldn't find anywhere that publishes the conversion between those two worlds.
Not saying the growth is fake. Standardised metrics exist for a reason.
I just don't know which number the market looks at on day one.
Addresses, notional, or fees. Which one gets priced?
#termmax @TermMax
I'd put in maybe 23 tokens worth of premium. The volume counter said close to 500.
Turns out that's not a bug. @TermMax 's volume page spells it out. Trading volume is tradingAmts minus whatever actually left your wallet, which basically means notional. They even publish a worked example with the tx hash on it. Long on an ESPORTS call, actual input 23.1, counted volume 496.9. Close the position and it counts again, another 490.3.
So one round trip on about 23 of premium shows up as roughly 987 of volume.
Being fair here. Options volume is measured by notional pretty much everywhere, that's just the convention. And most venues don't hand you the formula plus a hash to check it against. That part is better disclosure than I expected.
But the number you're farming and the number leaving your wallet are about twenty times apart.
Then I noticed the same thing one level up.
Token Terminal had @TermMax at #2 in daily active addresses among lending protocols back in March, behind only Aave. DefiLlama has it around #36 by TVL. Neither one is wrong. One counts people, the other counts money.
The fees live on the small side of that gap. 7% of premium to open or close. Take profit fee charged on notional, 1.9% at the start, shrinking as maturity gets closer. Financing that ticks per second, also on notional.
TGE is on the 25th. This is the bit I keep circling back to.
Activity gets reported in addresses and notional. Revenue and float get reported in dollars and tokens. I couldn't find anywhere that publishes the conversion between those two worlds.
Not saying the growth is fake. Standardised metrics exist for a reason.
I just don't know which number the market looks at on day one.
Addresses, notional, or fees. Which one gets priced?
#termmax @TermMax