$BZRX pre-market on Opium Exchange
In short: ZEPO is an option that replicates an asset; we have launched ZEPO trading for $BZRX token, stay tuned… And don’t forget to drop an order for $BZRX at attractive price>>
About BZRX token
bZx is a protocol that enables trading, lending, and borrowing on the Ethereum blockchain. Their token model was gradually upgrading since 2018. The new and upgraded version of the BZRX token will be launched on July 13. New BZRX will reward active participation with an ever-increasing share of protocol ownership. More you can read in their article: https://bzx.network/blog/bzrx-token
Opium Exchange is a place to hedge yourself in DeFi.
How to trade ZEPOs for $BZRX
Opium Exchange is a non-custodial platform and not a liquidity provider. There are some market-makers and liquidity providers already working with our APIs. The trading experience is just like on a centralized exchange, but keeping all decentralized benefits.
- Place your buy/sell order and specify the price limit. You can place an unlimited amount of opportunity orders. It won’t cost you anything unless your order gets matched and a derivative token is minted, just like on centralized exchanges.
- Specify an expiry time of your order after which it can not be matched and settled on the blockchain. Your order will proceed to the matching layer — decentralized order books that run on meta-transactions.
- You can always cancel your order before it is filled and a derivative token is minted.
- Once your derivative is minted, it is transferable/tradable (ERC-721o standard). You can keep it in a cold wallet, trade on the secondary market, or send it to someone.
There are two ways how to interact with the ZEPO contract for $BZRX: as a sponsor who shorts BZRX or as a holder of BZRX who earns on it.
To mint short position you will need to lock some collateral in the contract (in our case it is 5 DAI). To mint long position you need to pay a premium for the contract to the seller.
At maturity, you, as a holder of a long position, will receive the Uniswap market price of BZRX. The short position gets the collateral back, minus the market price of BZRX.
As you can see long will make a profit, if the price at maturity more than the amount he paid for it. At the same time, short wins if the price at maturity is lower than the selling price now.
Keep in mind that the initial margin caps the maximum gain or loss.
Understanding ZEPO
ZEPO is a call option with the strike price set at zero. The coolest feature is that it replicates the price of an underlying asset.
You don’t need to think complex: buy or sell ZEPO as you would do with the token itself.
ZEPO vs asset
The underlying of this option is typically a non-marketable asset or an asset with no deep secondary market. Historically, it is popular in countries where there may be obstacles to the transfer of securities, especially stock.
The holder of the option will have full participation in the underlying price in an indirect way. The purchaser of the option will definitely exercise it, so it is the same as owning the underlying asset. The seller has full offsetting participation in the stock price, which is equal to a short position.
ZEPO is a call option with the strike price set at zero. The coolest feature is that it replicates the price of the underlying asset.
About Opium
The Opium protocol is a universal protocol to create, settle, and trade virtually all financial derivatives on top of Ethereum’s trustless infrastructure. We also created the Opium Exchange, where we list useful derivatives to long and short popular DeFi tokens, as well as hedge trading risks.
