$COMP market is live on Opium Exchange

Opium Exchange introduced ZEPOs: it is basically a future for non-listed tokens. They are used historically to create pre-markets, and now in DeFi!

Opium Exchange introduced ZEPO — formally, it is a call option with zero strike price, to say simple, this instrument replicates an asset. $COMP market is now live on Opium Exchange, place an order >>

You don’t need to think complex: buy or sell ZEPO as you would do with the token itself.

How to trade ZEPOs for $COMP

Opium Exchange is a non-custodial platform and not a liquidity provider. However, there are some market-makers and liquidity providers already working with our APIs.

1. You can place your buy/sell order with the price limit.
2. Your order will proceed to the matching layer — order books that run on meta-transactions. You may specify an expiry time of your order after which it can not be matched and settled on the blockchain.
3. You can always cancel your order if it is not matched.
4. Once settled, your derivative positions are transferable/tradable via ERC-721o. You can keep it in a cold wallet, trade on secondary market or send it to someone.

Pre trading market

You can find Opium Exchange manual here or read about Opium Protocol here.

Important information, keep in mind:

• ZEPO payout is capped by the initial margin (20 DAI) of a seller, at the current contract is set to 1 COMP per COMP.
• Because there is no secondary market, yet it is challenging to evaluate the adequate amount of initial margin. We will carefully monitor the feedback of users and will list contracts with different margin requirements if needed.
• Every current contract covers 1 COMP token. If you trade 100 ZEPO contracts, you are exposed to 100 COMP at maturity. If you sell ten contracts an initial margin of 10*2=200 DAI will be locked from your account.
• If there is no market at the maturity date, the oracle price will report 15 DAI (“expected price” in the community). So keep this in mind, it can be a risk or an opportunity to make a bet on the absence of Uniswap market at maturity.
• Opium.Exchange is a software platform that provides access to open-source Opium Protocol. Always check your local regulations.

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, that 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 underlying asset.

About Opium

Opium Team is a small team of professional traders, mathematicians, and programmers with a ton of experience in their field. Big parts of economies are in the hands of centralized agents that exploit their positions. We are convinced that they are not necessary any longer. We designed the Opium Protocol to ensure transparent, fair, and open financial markets.

Feel free to drop us any questions or your feedback in Opium Telegram group. Chat us also if you need help with building derivatives on top of Opium Protocol.

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