Dopex: Atlantic Options

  • Dopex: is a decentralized options protocol which aims to maximize liquidity, minimize losses for option writers and maximize gains for option buyers — all in a passive manner for liquidity contributing participants
  • Options: There are two types of options — call options and put options. A call option is the right to buy the underlying asset at the strike price on the expiry date.
    The buyer of a call option is betting on the price of the asset going up.
    A put option is the right to sell the underlying asset at the strike price on the expiry date.
    The buyer of a put option is betting on the price of the asset going down.
    Read more here.
  • European Options: An option which gives buyer a chance to exercise the contract only at the expiry date
  • American Options: An option which gives buyer a chance to exercise the contract anytime prior to the expiry date
  • SSOVs: Dopex’ flagship product — SSOVs allow users to write options for a specified period of time and simultaneously earn a staking yield on their deposited assets.
  • Liquidation protection for leveraged perps
  • Liquidation protection for leveraged bonds
  • Creating option spreads
  • Liquidation protection for CDPs
  • Backstopping token prices
  • Creating synthetic straddles
  • Insured stablecoins
  1. By purchasing an ETHUSD Atlantic put (AP) with a strike right above your liquidation price and depositing the underlying, which in this case would be ETH. We deposit the underlying for the sole purpose of unlocking the USD from the AP.
  2. By purchasing an ETHUSD AP like above, but purchasing a corresponding ETHUSD Atlantic call (AC) instead of locking in the underlying. We use the ETH collateral from the AC to unlock the AP collateral.
  • Dopex Managed Contract supplies (deposits) the users’ selected asset to lending protocol and borrows more of the same asset and re-supplies. This is looped to obtain multiples of the asset based on leverage selected by the user.
  • The managed contract purchases an AP based on the liquidation price and supplies collateral from the AP to bring effective liquidation to 0
  • The asset is now used to bond OHM and receive vested OHM at a discount
  • The vested OHM once received is sold back into OHM POL to re-obtain the AP collateral.
  • Lending positions are re-paid and the user keeps profits from bonding along with OHM that was bonded. In case of shortfalls for the AP collateral this is covered by the user’s deposit.
  • Atlantics offer collateral amounts to relatively far under-collateralized positions over fixed time periods for specific use-cases within DeFi.
  • Atlantic puts offer superior passive yield to stables for whoever is interested in purchasing assets at a discount to market vs current prices.
  • Atlantic calls offer superior passive yield to asset holders looking for near risk-free yield.
  • The combination of both Atlantic option types result in highly capital efficient loans across a multitude of DeFi use-cases.
  • Atlantics will be a great source of fees for Dopex.
  • Atlantics also enable Dopex to obtain veCRV voting power at the cheapest price vs the market while increasing vlCVX capital efficiency and in-turn deposits into vlCVX, making it a synergistic play between Convex and Dopex.
  • Atlantics will be used heavily by Dopex with its' stablecoin, DPXUSD during the bonding process to make the process anti-fragile (lower prices lead to higher backing)
  • Atlantics enable options to be used with no direct interaction by the end user utilizing them. They’re made use of in the background in a way that is beneficial to even the most non-option savvy user within DeFi.

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