Pods v1 Testnet Launch
New protocol and app live on Kovan.
Pods is the easiest way to hedge crypto assets on Ethereum.
We’re thrilled to announce the launch of the Pods Protocol and app on testnet. We’ve leveraged design, code, and (a lot of) math to build a decentralized non-custodial Options Protocol. Today users can buy, sell, and provide liquidity to options pools on the Pods Options AMM.
From v0 to v1
Pods v0 had a specific app and used Uniswap as a venue of exchange for the options contracts. We beta-tested the app, wrote detailed documentation, talked to liquidity providers, did a code audit on our smart contracts with Solidified, and were ready to go live by early September 2020.
Ultimately, we calculated that using Uniswap as a venue of exchange for options was not a good idea for liquidity providers. We decided to stop the launch plans to go back to the whiteboard and design a new options AMM.
With this in mind, we immediately started executing the new plan on all fronts. The Options AMM system design, code, and new app were mostly done by the end of October when we started auditing the code with Quantstamp.
The New Protocol
Pods Protocol is made of two core components:
- the Options Instrument and
- the Options AMM.
The Options Instrument describes how a user can create and manage an option token. Today the contract is best suited for fully collateralized, physically settled European options.
Leveraging all benefits of DeFi’s composability, our protocol is built to enable the use of interest-bearing tokens from Aave everywhere (as collateral when minting options and as stablecoin liquidity in the pools), making the protocol smarter and more fluid.
We call it “smart collateral” since it increases the user’s capital efficiency while interacting with options or the pool.
Every asset should be a smart asset and generate yield in itself.
The Options AMM allows for single-sided liquidity provision while algorithmically prices the options based on market conditions and Black Scholes. It also accounts for a programmatically update on each option’s implied volatility based on the pool’s conditions.
The protocol allows for several unexpected flows. For instance, one of them is providing options tokens as liquidity to the pool and earning fees. Therefore reducing the cost of the hedge bought and allowing options tokens to be smarter within themselves.
Moreover, we’ve put effort into creating thorough documentation meant to explore and explain the logic of the smart contracts behind the app, running on Ethereum’s infinite machine.
Find the protocol docs here.
The New App
Our goal is to create the easiest and smoothest hedging experience for users.
The new protocol has significantly different flows and we had to redesign our app to allow for such flows. While trying to deliver a friendly UI, we also focused on building innovative UX to facilitate the user’s journey through our new systems.
New functions
A few of the new functions allowed by the Pods Protocol are:
- Buying and selling through a custom AMM
Users will buy and sell options contracts to the Options AMM, which handles the pricing and distribution. - Single-sided liquidity provision
Users can provide liquidity with options tokens, stablecoins — or interest-bearing tokens such as aTokens, separately or together. The resulting liquidity pools will provide different investment opportunities, coupled with the usual options trading.
- Mint
To add liquidity on the options tokens side, users have to mint options. - Resell (coming soon in the app)
To resell options tokens that users previously bought, they need to access the AMM on current prices. - Buy options and provide as liquidity
Option buyers can provide their idle options tokens are liquidity in the pools. - Remove liquidity
Users can remove the initial exposure of the funds provided together or separately, in the proportion they prefer, at any time.
New interaction models
- Navigation and Web3
With v1, we focused on various details, from an easy navigation flow (through parent pages and contextual tabs) to web3 UX patterns (wallet, allowances, etc.) - Clear but informed
While trying to keep everything clean and straightforward, we’ve added tooltips and “Learn more” areas to explain what’s happening at all times, regardless of the user being a first-time hedger or a senior degen already accustomed to options. - Responsive experience
As DeFi makes its way to tablets and smartphones, we wanted to be prepared with a seamless mobile experience. - Search
Search options and share the results with your community or with friends looking to protect their portfolio. - Overall nice UI
We all like things that feel and work nice, so we’ve also “invested pixels as collateral” to achieve a modern, clean look for our project. And yes, we’ll be working on a 🌑 dark mode soon.
Find the new beta app here.
Testnet Launch Goals
The testnet launch sees the contracts on Kovan testnet to test Pods under dynamic conditions (considering the cap and admin keys) and gain participants’ operational experience.
It is also an opportunity for Pods' users to understand the protocol’s potential use cases and give feedback on their preferences for both the protocol and the app.
Testnet Guide
- To start, get some Kovan ETH here.
- Access our app in Kovan.
- Check the User Guide.
- Join our Discord for guidance and feedback.
Resouces
Find below the list of links that can be useful on your beta testing exploration:
We’re excited to share this new v1 with the community. Our mission now is to gain as much feedback as possible from you. With this in mind, head over to Discord or Twitter and tell us what you think!
About Pods
Pods is a decentralized non-custodial options protocol. Users can create options and trade them through an Options AMM on the Ethereum Blockchain. Pods is the easiest way to hedge crypto in DeFi.
We invite you to take the first step in your new mission: start testing the app on app.pods.finance
Join the Pods community
app | website | documentation | blog | twitter | youtube | telegram | discord
