Divergence Mock Options Trading Battle: A Recap

Dear Divers,

Our 14-day mock options trading battle on the Arbitrum Rinkeby Testnet has concluded. The results 💰are in, check this link if you want to know how many USDC rewards you can expect. We will be distributing the rewards to the winners’ Ethereum addresses by the end of the week.

Even if you didn’t make it on to the Top 100 Leaderboard, you are gifted with our specially forged Spear NFTs, as a token of our appreciation. We are taking note of all your feedback and suggestions and making our app better!

The Turnout

This was our very first public trading competition, and it won’t be the last :)

While mainly serving as a celebration of our updated beta launch, as intended, it also helps our team test the robustness of our platform and detect issues we might encounter in a production environment.

In total, we had over 1100 participants in our mock options trading battle, who contributed to $430 million in trading volume altogether over the course of 2 weeks, generating a total of $1.29 million in trading fees.

Additionally, while liquidity provider PnL is not being accounted for in the leaderboard PNL, we’ve also noticed some participants elected to join as liquidity providers by adding liquidity to certain pools. LP’s PnL is tricky to account for in that the pool shares are minted as ERC-20 tokens, which can be transferred to other addresses (staking contract, for example).

In a live environment, traders are both buyers and sellers of options. This is because selling a binary call is equivalent to buying a binary put, and vice versa. Thus, by having a hybrid strategy, a user can expect to diversify their risk exposures and enhance their yields, expanding sources of income. Therefore the fully accounted PnL is going to differ from what is being observed on the leaderboard!

What’s Next?

We’re thankful to those of you that have provided feedback and helped us discover bugs during the whole campaign process. As a next step, the Divergence team will:

• Fix the bugs and issues reported by the community and our auditors.
• Continue to improve the UI based on feedback from the trading competition.
• Optimize protocol pricing curves and parameters to improve market-making efficiency.

About Divergence

Divergence is a decentralized platform for hedging, trading DeFi-native asset volatility, with its flagship product being an AMM-based marketplace trading synthetic binary options.

Follow us

🔔Website: https://www.divergence-protocol.com/

🚀Twitter: https://twitter.com/divergencedefi

💬Telegram: https://t.me/divergenceprotocol

📢Telegram Announcement: https://t.me/divergenceannouncement

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👓Discord: https://discord.com/invite/v96fhsPfRa