I kept staring at the two exercise buttons in TermMax Alpha and thinking: okay, but which one would I actually use?
Say my Long is in profit.
Net Settle is the easy answer. The protocol handles the settlement, and if the position is small and on-chain liquidity is decent, I probably wouldn't overcomplicate it.
Delivery is where it gets interesting. I'd fund the purchase at the strike, receive the underlying token, then choose where to sell it. If a large Net Settle would hit a thin DEX pool, that extra control could save more than it costs.
Could. Not automatically.
I'd still have to count transfer costs, venue risk, timing, and the capital needed to exercise. Delivery isn't a magic slippage-off button.
My check would be pretty basic:
1. What does Net Settle leave me?
2. What would Delivery leave me after every cost?
3. How much extra work and capital does route two need?
I'd choose the bigger final wallet balance. Not the fancier button.
So this isn't really cash versus token. It's convenience versus control over execution.
@TermMax #TermMax
Say my Long is in profit.
Net Settle is the easy answer. The protocol handles the settlement, and if the position is small and on-chain liquidity is decent, I probably wouldn't overcomplicate it.
Delivery is where it gets interesting. I'd fund the purchase at the strike, receive the underlying token, then choose where to sell it. If a large Net Settle would hit a thin DEX pool, that extra control could save more than it costs.
Could. Not automatically.
I'd still have to count transfer costs, venue risk, timing, and the capital needed to exercise. Delivery isn't a magic slippage-off button.
My check would be pretty basic:
1. What does Net Settle leave me?
2. What would Delivery leave me after every cost?
3. How much extra work and capital does route two need?
I'd choose the bigger final wallet balance. Not the fancier button.
So this isn't really cash versus token. It's convenience versus control over execution.
@TermMax #TermMax
