AMA with Ethopt.io 📣
Because of the recent popularity with regard to Gem Collectors’ AMA sessions, Crypto_Thai and I (Bill Grimes) have decided to recap some of these; starting off with Ethopt.io🚀
The AMA’s are directly copied from the Telegram group. Direct replies to messages are denoted by a small ‘r’ next to the message number (e.g. A3r.)
The Q and A denoted before a message are indicators for questions and answer, respectively.
The following AMA was hosted on the 17th of November 2020.
The interviewees were Captain Toshi and Gail Wynand from Ethopt.io.
The AMA hosts were Crypto_Thai and Bill Grimes.
Q1. Bill Grimes:
Ethopt; “the premier options exchange on Ethereum”. Could you provide the community with a brief explanation on your platform? For the people not aware of an (American) option, what is it and what is it used for (in simple terms)?
A1. Gail Wynand:
To summarize it. Ethopt.io is a platforms to exchange fixed-rate trades. Let me go into more depth.
Let’s say you have ETH and DAI. And you expect the price not to move too much within 1 week. You create a trade on Ethopt.io, you stake ETH in a contract, and you specify the ETH to DAI exchange rate, plus a fee. Someone can buy your contract for that fee (e.g. 0.1 ETH). This will then permit them to sell DAI in exchange for the ETH you locked in the contract. At which point the ETH will be released from the contract and sent to the buyer, and DAI now locked in the contract. Then also sell the ETH back to the contract for DAI, which will again lock ETH, and the buyer receives DAI. The buyer can do this back and forth until the 1 week period you specified in the creation of the options contract.
That is the core idea of how options works on our platform. From the creator of the options perspective you charge a fee which is greater than the expected price movement of a pair of assets (e.g. ETH-DAI), and from the buyer’s perspective, he pays a fee which enables him to hold one asset or the other, which permits a hedge against one token collapsing in price against an other within a certain time frame
The fee the creator of the option charges reflects the expected price movement + profit, let me know if anything is unclear.
Please feel free to give also a clear background story behind your team
Q2r. Captain Toshi:
Yep just allow people to digest that for a bit, before following up on here :)
A1r. Bill Grimes:
Very clear description Gail. Perhaps wise to read over it a second time for anyone who is still flustered ;)
A2. Gail Wynand:
It’s already complete, this was a pet project me and a partner of mine created over several months back in 2018. But DeFi was not realized back then, and my original partner disappeared so the project was abandoned. DeFi has now emerged as a legitimate market so the project has now been revived and enhanced. @Crypto_thai
A2. Captain Toshi:
Since then it has just been a modernisation and transition into something more fitting of the current uniswap scene.
A2. Gail Wynand:
Exactly, let’s say you fear that a project may rug on uniswap for example
you can purchase an ethopt, ETH-RUG, pay a fee e.g. 1 ETH, and sell ETH-RUG to the contract back and forth, so if it rugs you can get ETH back in exchange for the RUG token
A2r. Bill Grimes:
This is a very innovative principle for crypto! Both the creator and buyer of the option or ethoption would benefit in such a scenario
Do you have a visual concept for the whole process?
A3. Gail Wynand:
Not at the moment, but I can give clear bulletpoints describing a complete example.
A3. Captain Toshi:
In general I agree that it is something quite difficult to grasp conceptually at the start, if you have no prior experience with options, we will have a introductory guide on our platform release late November to help streamline the process for new option traders.
*Small conversation where everyone agrees the process will become more clear by testing it out yourself as well*
A3. Gail Wynand:
• John has just purchased MOON token in a presale.
• John has purchased MOON tokens at a rate of 1 ETH : 500 MOON.
• John isn’t sure the team may rug MOON token on Uniswap rendering the tokens worthless.
• John goes on ethopt.io and checks for a market for ETH-MOON.
• John finds an option exchanging 1 ETH : 500 MOON for 1 Month with a fee of 0.2 ETH.
• John purchases the option by paying 0.2 ETH.
• A week goes by, the team behind MOON is behaving questionably, so John sells 500 Moon to the contract, and receives 1 ETH.
• Another week goes by, the project is mooning so John sells 1 ETH back to the contract and receives 500 MOON.
• Two weeks go by and this contract is about to expire, John feels that MOON team will rug, so john sells 500 MOON back in exchange for 1 ETH.
• And the options contract has now expired.
A3r. Bill Grimes:
Couldn’t be more clear in my opinion. Very nice example🙌
It’s very important for everyone to understand the concept at it’s core, yet I think Gail has provided the explanation needed
Q4. Bill Grimes:
Let’s head over to the next question:
Options are a phenomena transferred over from the traditional world of financing (stocks). This principle is now conducted over to the crypto world, what difficulties do you perceive in trying to implement this financial tool to the crypto space? Have there been negative views on the concept, if so, what were they?
A4. Gail Wynand:
The main difficulty is in education really. DeFi exposes all of these fairly sophisticated financial products
To the general public, and being able to convey the core idea of what we’re building, and how to best
Take advantage of the platform will be a challenge in the crypto space.
Some users have feared that frontrunning will be a problem, but options are not as high speed as general trading, so this isn’t so much of an issue
A video would do the work here
A4r. Bill Grimes:
Education I could understand would be difficult, yet as Toshi explained as well, using an educational tool to help beginner option traders should prevent this from becoming a problem
Q5. Bill Grimes:
The project was initiated by /u/cintix (https://www.reddit.com/user/cintix/) in 2017. He disappeared ever since and the project was deserted until the current CTO /u/Hdizzle83 (that is you, Gail) revived it. Are there any hypotheses on why /u/cintix might have left the project? Is he aware that it has been revived? And does he support the new developments?
A5. Captain Toshi:
Cintix was actually very well known to the early eth Dapp adopters between 2016–2017, after the full completion of the working smart contracts for the platform, they disappeared abruptly, and have not contacted us or moved any of their wallet funds since.
That being said they played a fundamental role in the initial core development, and so we have left a little ‘Easter egg’ in our Whitepaper known as ‘Satoshi’s Return’, which refers to 2.5% of the OPT token supply being airdropped to cintix’s former deployment address.
So if they ever make an appearance again they will have a nice little surprise, but it also benefits the community regardless if we continue to not hear anything, since it means an effective burn of 2.5% of the OPT token supply.
A5. Gail Wynand:
@bill_grimes Illness was the most likely reason behind cintix’s disappearance
Cintix altogether abandoned crypto around that same time period
Thats a sad story..
A5r. Bill Grimes:
Thanks for clearing this up. It’s sad to see such skilled Dapp Developers leave the space but I think the incentive to drop 2.5% of the OPT tokens is a kind gesture!
A5r. Captain Toshi:
Agreed, credit should always be given where it is due.
Q6. Bill Grimes:
Ethopt.io is a platform that is to-be-launched. I’m aware there are some mockups/screenshots available, could you provide us with these? And describe them where necessary (quick walk-through of the features in the platform)
A6. Captain Toshi:
Contains all the current ui teasers, along with this month’s timeline. Will gather the images in here shortly :)
A6. Gail Wynand:
• The search will permit user to search for existing options markets, the orderbook will list options ranked according to volatility using an inverted black scales
• The chart will show various data including options prices and volatility over time
• Users will be able to create “put” or “call” options
• Also request the creation of “put” and “call” options
• And resell options that they have purchased
A6r. Captain Toshi:
Light mode and dark mode respectively. (not all pictures included in the Medium article)
A6r. Bill Grimes:
Q7. Bill Grimes:
I see the date of 2017, are these old screenshots?
Or was the design created back then?
A7. Captain Toshi:
No just dummy variables, we have images of the old 2017 UI which was far less sophisticated
A7r. Bill Grimes:
Ah understandable, was thinking it was a real collaboration with Ice Cube😜
A7r. Captain Toshi:
Front end is completely new and modernised to fit the current defi scene. Will only improve even further with community reports/suggestions. I don’t think anyone would have complained about such a collaboration though :)
Do you think people in the Crypto Space will use [the put and call] feature?
A8. Gail Wynand:
Certainly, in the example above rather than searching for a market, John could’ve simply “requested” a market. e.g. I will pay a fee of 0.5ETH for an ETH-DAI option lasting 1 month @Crypto_thai
This is a necessary feature as all markets will not automatically exist, and to ensure there’s sufficient volumes in markets
*Small conversation agreeing on the request feature probably being used often right after the launch of the platform*
Q9. Bill Grimes:
At the moment Ethopt is planned to be launched on the Ethereum network only. Will there be options for options on different chains? ;P
If so, are there certain blockchains that are considered before others?
A9. Gail Wynand:
Ethereum is the main DeFi platform at the moment, but other chains are becoming more mature, so we’ll see what happens
We’re invested in our community in general however, so if our community were to request for us to deploy on another chain we would do that
*In response to A9* By just asking in the chat or like DFO/DAO?
A10. Captain Toshi:
The easiest transition would probably be the tron chain, easiest code transition and a similar type of user base.
A10r. Gail Wynand:
As Toshi said. @Crypto_thai We could have a more formal voting process including a token burn/staking within a DAO. But that remains to be seen for now we’re prioritizing Ethereum
A10r. Crypto Thai:
All clear 🙏
Q11. Bill Grimes:
Ethopt.io is a native, onchain platform, it does not rely on a third-party oracle (as stated in the white paper). Will Ethopt regardless of this statement still decide to partner up? What type of partnerships can we expect?
A11. Captain Toshi:
There may be partnerships applicable for new pairs being added. That being said always open to new ideas which could expand and co-benefit both us and our partners.
As Gail mentioned earlier: Providing a new dynamic and safety link for potential rug projects.
I think that could bond really well for a space filled with many disaster launches.
A11r. Bill Grimes:
I can definitely agree!
Q12. Bill Grimes:
With regard to the auditing, are possible partners/auditing firms contacted for this?
A12. Captain Toshi:
We will be running a community bug bounty program before full release, though the code was tested and internally audited by some of the oldest eth dapp developers.
Between now and then we may finalise a commercial level audit too.
A12r. Bill Grimes:
Would be great to see, audits are appreciated a lot in the space these days
Q13. Bill Grimes:
What do the tokenomics look like? Why is the distribution of the tokens initiated as such? And what is the OPT token used for?
A13. Captain Toshi:
OPT’s core token utility is being staked for dividends generated through the ethopt.io platform fees.
On each stake there is an entry and exit fee of 0.5% each way, respectively distributed between remaining stakers, and the other being used on a buyback and burn through uniswap.
What will the marketing look like in the near future?
A14. Captain Toshi:
We have partnered with two strategic private investor groups, have also just finished finalising another campaign which will be heavily crypto twitter based, one thing we noted is that all the influencers we have spoken with have expressed a genuine interest in the product.
Options and American options specifically, decentralized, are a completely free market right now, so we do have that first mover’s advantage.
A14r. Bill Grimes:
Seems like a good marketing boost is coming soon🚀
After this message the Telegram chat was opened and community questions could be asked.
The best question received 50 dollars worth of ETH, as a Gem Collectors giveaway!🏆
This section of the AMA is not included in the article; we want to preserve the privacy of the community members (and keep their personal information disclosed within the Telegram platform).
To anyone who is interested, use the following link to join the Gem Collectors community and read the community questions: https://t.me/gemcollectors/176311
The AMA sessions are not meant as financial advise in any way.We from Gem Collectors hosts these sessions to do live research on a crypto-related project. As always we recommend: ‘do your own research (DYOR) before investing into a project.’
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