Squeeth has Shutdown.

Here’s a recap of Squeeth and why Opyn is transitioning to Opyn Markets

What was Squeeth?

An experiment to create a non-expiring perpetual that tracks ETH as an underlying asset, providing convex exposure without liquidity fragmentation completely on-chain. It was the first ever successful experiment with Power Perpetuals in DeFi.

Since Squeeth’s launch in Jan 2022, the DeFi options market has catapulted from $2-$3 million in combined average monthly premium volume and $20-$30 million monthly notional volume to $10-$15 million monthly premium volume and $700-$800 notional volume in 2024.

In that time, Squeeth attracted over 18,000 unique users that traded more than $1.8 billion in ETH exposure. A single product tracking a single index asset for convex, options-like exposure completely on-chain, achieved this remarkable growth while pioneering non-fragmented liquidity in DeFi.

Since inception, our short-volatility Crab Strategy built on Squeeth has delivered over 50% returns to investors. All of this was achieved organically, with no token incentives to accelerate results.

Now, Opyn is expanding its product suite to support all perpetual traders, driven by a central belief: everything in DeFi is a perp. From this foundation, Opyn Markets will launch a comprehensive power perp suite with TradFi level capital efficiency for traders from all backgrounds.

What is next for Opyn & Squeeth?

Opyn is now transitioning to new product offerings, building to bring users a more comprehensive and agile power perp product suite with Opyn Markets. We’re very delighted to announce that Opyn Markets is targeting to launch in testnet in Q4 2024. The teams at Opyn have been working very hard to research and build something truly extraordinary that will solve multiple current gaps in DeFi.

Opyn Markets is not trying to be the next Binance or compete with CEXs or copy other perp platforms, it’s leveling up to TradFi level capital efficiency and flexibility to allow traders from all backgrounds to coexist in 1 protocol. You can check out what’s truly possible with Opyn markets here.

This shutdown is not a full stop for Squeeth. Squeeth and various versions of Squeeth are possible to co-exist on Opyn Markets. Anyone can deploy new markets for all ERC-20 token pairs across Squared (2-perp), Uniswap LP perps (0.5-perps), stablecoin perps (0-perps), and linear perps in a permissionless manner. Squeeth can coexist with Squ(st)eth (for stETH), Squitcoin (for Bitcoin), Squiniswap (for Uniswap), etc., in this new product suite.

Opyn has also prepared something special for loyal users. Users can expect announcements on future access and rebate incentives along with some surprises. Opyn will share more information about this soon. Keep notification on to stay updated with the latest developments on 𝕏!

How are Squeeth (oSQTH) and Crab users affected?

At shutdown on Nov 4, 2024, 16:00 UTC, all open positions across Squeeth and Crab were closed with no price impact.

The conversion of 1 oSQTH was taken as ~0.032719 ETH per 1 oSQTH at shutdown as per the final settlement rate at 16:00 UTC, November 4th 2024.

Users can now redeem ETH that corresponds to the value in ETH of their position at the shutdown time from oSQTH, Crab, etc anytime from opyn.co.

Detailed Instructions to claim ETH after shutdown are also updated on the frontend of opyn.co.

How did the shutdown affect Squeeth positions?

Users can redeem the converted ETH from opyn.co/Squeeth from all products built on top of Squeeth.

For Zenbull users: Because of the March 2023 Euler hack, which impacted the ZenBull contracts, specific actions were taken to ensure that any remaining assets in the Zen Bull contract are still available to withdraw post Squeeth shutdown. Users can learn how to claim CRAB from the Zenbull strategy contract here.

For oSQTH LP holders: LP tokens in vault can be claimed from Squeeth LP frontend. Users who have LP positions can withdraw their positions to Uniswap to claim oSQTH and redeem oSQTH for ETH here. All LP positions have been rebalanced and all underlying oSQTH exposure has been converted to ETH at shutdown.

For Long or Short oSQTH positions: Users can now redeem ETH that corresponds to the value in ETH of their position at the shutdown time from oSQTH, Crab, etc anytime from opyn.co. Users can also check this detailed guide on redemptions here.

Have more questions or need assistance?

Visit Opyn’s Discord and ask questions in the “👴 Squeeth-retirement” channel. If you want to know more about the rebalances and calculations, please refer to the FAQs here.

Stay tuned for updates on our next phase, with Opyn Markets.

Disclaimer: This announcement should not be considered investment advice. The decision to engage with or withdraw from the protocol is solely the user’s responsibility, and individuals should perform their own due diligence. We strongly recommend staying informed by joining Opyn’s discord for the latest updates.