🦄Dopex Background:
Dopex is a decentralized options protocol that aims to maximize liquidity while minimizing losses for option sellers and maximizing gains for option buyers. Dopex provides a simple and easy-to-use platform, which means that anyone can participate in the options pool. Users can deposit basis/quotes for their respective pools and earn passive income by selling and buying discounted options through the liquidity pool.
Additionally, option sellers benefit from a loss rebate system based on the exercise of options over a monthly or weekly period. Rebates are calculated based on the percentage loss incurred by the option seller over the weekly period and then paid out in the protocol’s rebate token, rDPX. Option pool participants receive a percentage of rPDX relative to the value of their losses. Using this rebate system, option sellers can earn higher returns than with a hedging strategy.
🦁Token Model:
Dopex adopts a dual token model; namely: DPX, rDpx
DPX: DPX is the limited supply governance token of the Dopex protocol and is used to vote on proposals at the protocol and application level. In addition to being a general governance token, DPX also generates fees and revenue from pools, vaults, and wrappers built on the dopex protocol after each global epoch. The total supply of this token will be 500,000 (500k).
rDPX: rDPX is a token minted and distributed for any losses incurred by pool participants. The number of tokens minted is determined based on the net value of losses incurred by option sellers. A percentage of losses, determined by governance, is enacted for all option sellers.
Since rDPX will not initially have a fixed emission curve - it may initially appear scarce if buyers do not make a net profit. The emission mechanism can be changed in the future via a governance vote.
🐯Dopex Features: 1: OLP (OPTION LIQUIDITY POOLS) Option Liquidity Pool
OLP is a new system built on the famous SSOV. As the name suggests, OLP is simply an option liquidity pool. LPs provide instant liquidity to option holders, and in return they enjoy the right to purchase SSOV options with an IV discount. In short, as long as there is enough liquidity, SSOV option holders can leave their positions at any time through OLP.
As an option buyer, you are betting on the price direction of an asset, and in most cases this bet is a rough range close to the target. For example, if you think ETH will rise this month but don’t know the exact day, you buy $ETH monthly options. For European options, you must wait for it to expire and settle before you can make a profit, which makes the last few hours/days very important. But with OLP, as long as you win the bet at any time during the option’s validity period, you can make a profit without sacrificing the time cost (Theta).
🐠Applications include:
Call Option Profit
Put option profit
Buy options at a discount
Buy options at a discount to arbitrage (through access to market makers to form a floor price)
🐱The impact of OLP:
OLP will make Dopex options more attractive to users than before. To enhance the user experience, we will introduce market makers to ensure sufficient liquidity, allowing users to leave their positions at any time.
🐸Dopex Features: 2: MATIC STRADDLE Option Pool:
Matic Straddles! Atlantic’s innovative design provides users with a whole new way to speculate on the price of Matic. You can deposit USDC to provide liquidity to the Matic Staddle pool, essentially providing liquidity for the At-The-Market (ATM) Put Option, or you can buy Matic Straddles to bet on the volatility of the coin price. This allows users to profit from market fluctuations.
🐳Without any effort, even a novice can earn income by lying down:
Seller:
1. Deposit USDC to Matic Straddle Smart Pool.
2. Deposited USDC is used to sell Matic’s current price (ATM) put option
3. Exercise at maturity (2 days) and withdraw deposit + PnL + option premium and bonus
Buyer:
1. Buy Matic Straddles with USDC
2. 50% of the collateral behind the purchased option is converted into Matic, which is equivalent to buying a
3. Exercise the option at maturity (2 days) and make a profit as long as the price of Matic coin fluctuates
Matic Straddles’ launch on Polygon will be a game changer, especially for those seeking innovative ways to earn income in the DeFi space. We look forward to more users using this product and to our future success with Atlantic Straddles.
Once the first round of deposits is open, it will last until 12PM UTC the next day. There is no limit on the amount of deposits. Once a round starts, deposits will stop being accepted, and subsequent deposits will take effect in the next round. Each round lasts 2 days, and deposits will automatically roll over to the next round unless the user manually cancels before the end of the current round.
🐣Dopex is a rising star✨
OPEX adopts the option pool model, allowing everyone to earn income in a passive way. It ensures fair and optimized option prices at all strike prices and expiration times, while providing value to option sellers and buyers. All of this comes from our innovative and most advanced option pricing model, which can always replicate the "volatility smile".
During this year, Dopex's infrastructure has been gradually improved. Whether it is Atlantic Options or Cross-chain Matic Straddles, Dopex is making continuous progress.
Dopex is currently in the bottoming stage. 2023 is destined to be the year of L2 explosion. If you missed GMX, please don’t miss DPX!