Calling all DeFi BUIDLers — we wanted to share some ideas for what you can build with Opyn v2! Opyn’s new v2 allows you to create put and call options with spreads for capital efficiency, and is great for applications ranging from protection and hedging to taking views on different cryptocurrencies.
Learning Resources
Options are an incredibly versatile financial instrument — in fact you can create any financial payoff using just put and call options. Here are some great resources to get started with learning about options:
Ideas
Rollovers
Allow users to rollover their options from one expiry until the next. For example, if a user holds on to an option that expires on Oct. 30, give them the ability to have that option automatically rollover to expire on a date in the future eg. Nov 30. You can accomplish this relatively simply using the new “operator” functionality in Opyn v2, where users can delegate vault actions to another smart contract.
Interfaces
Create interfaces for users to access and interact with Opyn v2. This could be an easy to use options interface for folks who are new to options, an explorer type interface to see what’s going on across the protocol like OpynMonitor, a more advanced interface for sophisticated traders, an integration with an existing interface like Zerion and Zapper, or something else entirely!
Portfolio Managers
With Opyn v2’s new “operator” functionality, users can delegate out portfolio management to dedicated portfolio managers. These managers could be individuals or smart contracts that employ specific strategies.
Hedging for Uniswap LPs
Uniswap LPs can help reduce impermanent loss in ETH:Stablecoin pools using straddles (put and call with same strike) and strangles (put and call with different strike).
Structured products
You can use options in combination with other financial primitives to build interesting structured products. For example, you could attach a call or put option to an ERC-20. One way this could work to go to a money market (eg. Compound, Aave), look at the fixed rate lending rates, and deposit an amount (say 0.99 USDC) that yields 1 USDC at expiry. Then you could use the remaining 0.01 USDC to buy a call option. The user’s upside exposure would be based on the 0.01 and the price of a call option.
Volatility Oracle
Using put and call options you can develop a volatility oracle like the VIX, which tracks volatility in traditional finance.
OTC oTokens Interface
To avoid slippage, a lot of large oToken users are looking for ways to conduct OTC trades for oTokens. You could facilitate this using 0x as a settlement layer, building a simple interface for parties to interact with eachother while preserving anonymity — this could be something similar to what Boxswap does for OTC NFT trading.
+Your amazing new idea
The possibilities with oTokens are limitless — we’re so excited to see what new ideas you’ll come up with! We’re happy to help at any time. You can find us on the Opyn discord.
Current Projects Incorporating Opyn
OpynMonitor
Opyn Monitor is a powerful interface for users to keep track of their Opyn positions and engage in advanced trading.
SaveDAI
SaveDAI is an insured, yielding savings account built using Compound, DAI, and Opyn, by wrapping cDAI and ocDAI into a single ERC20 token.
DEXTF
DEXTF creates structured tokens making use of oTokens in the set of protocols they integrate from.
Aave Insurance
The Aave team created a put option on aUSDC, allowed you to protect your USDC deposits in Aave.
tBTC Insurance
A hackathon participant created a put option contract, where the contract allows holders to exchange tBTC for WBTC no matter what, protecting users from tBTC risks.
Get started
We’re more than happy to brainstorm ideas and answer any questions :) You can find us on the Opyn discord, or on the Opyn channel on the ETHOnline Discord and you can check out the v2 documentation here.
