AMA Satoshi Club x OPA , June 3rd
We were delighted to welcome our guest from OPA. The AMA took place on June 3rd, 2021 and our guest was @PappaPanda!
The total reward pool was 500$ and was divided into three parts. In this AMA recap we will try to summarize some of the most interesting points for you.
Part 1 — introduction and questions from the Telegram&Bitcointalk community
Gold Rocket | Satoshi Club: Hello again, dear Satoshi Club community! We are pleased to announce AMA with OPA.
Today our guest is @PappaPanda!
Andrés M. | Satoshi Club: Our dear guest today is @PappaPanda. Welcome to Satoshi Club!
Giant Panda: hi
Gold Rocket | Satoshi Club: Hello and welcome to Satoshi Club, @PappaPanda!
Giant Panda: honored to be invited here
Andrés M. | Satoshi Club: Nice to meet you, we are glad to have you here
Gold Rocket | Satoshi Club: Let’s start! Introduce yourself please. How did you get to be involved in crypto & OPA?
Giant Panda: I am COO of Option Panda (https://opanda.io) and very proud to share our product with Satochi club members. I have been in crypto space for over 5 years, getting involved in a couple of cornerstone development in the Ethereum ecosystem before. Option Panda is a very innovative options trading platform that we want to build for community members, the first in its kind on Binance Smart Chain. We are also considering deployment on Matic & Arbitrum as well to serve the Ethereum community’s trading needs.
We have done deep research with the derivative products so far in the market. Almost 99% of them have big flaws and not convenient for users to use. Option Panda has a vision to bring a transparent, fair, convenient trading experience to crypto community members.
Gold Rocket | Satoshi Club: this is really impressive!
Giant Panda: over
Andrés M. | Satoshi Club: Important platform right now. How this idea came to your main? How born OPA?
Giant Panda: We think DeFi is the future of finance. However, there aren’t many serious team on the market to build a solid product, especially derivative product. Decentralized exchanges like Uniswap proved the power of DeFi, however, it’s not easy to use and sometimes bares a lot of risks for small players. The same with lending protocols. Option Panda want to build an options trading platform that will give traders the freedom to trade within a safe & fair environment, and a product that could leverage people’s purchasing power. At the same time, a decentralized exchange must be community-driven so that the governance power is owned by community. That’s why we have this platform token OPA. We’re paving the way for community members to use OPA to govern Option Panda affairs. Soon to deliver.over
Gold Rocket | Satoshi Club: This is very promising! You guys are in trend
Andrés M. | Satoshi Club: Great, so please tell us about the interesting name, why did you choose the panda as your symbol?
Gold Rocket | Satoshi Club: Please tell us also a bit about OPA team. Who is the core of the project team?
Everybody loves a panda
Giant Panda: Panda is cute and it doesn’t bite
People in the world loves and adores Panda. We hope Option Panda could also win crypto community’s love.
Andrés M. | Satoshi Club: That’s a good point, are amazing creatures
Gold Rocket | Satoshi Club: For sure
Giant Panda: I am COO in the team. I am also coordinating a lot of development and marketing effort of the project. The CEO is a veteran in the trading field who has made a lot of profit in the early times of blockchain. Our chief developer is a top 10 code contributor in the Github community, really deep in coding. The CMO is a former CMO of a big centralized exchange.
Gold Rocket | Satoshi Club: Aww.. dream Panda
Andrés M. | Satoshi Club: Thank you so much for the introduction. We have collected the best community questions for this stage of the AMA. Let’s proceed with the first one. Ready?
Giant Panda: I am ready
Q1 from Telegram User @victorogb
Options Panda barely launched a couple of days back (May 31st, 2021) on Gate.io Startup and received an overwhelming reception with startup funding raised to over 333 times of the projected goal. This astonishing performance, is a direct pointer to investors confidence in the project and also shows the strong desire of customers for options product. Riding on this massive success, how will Options Panda look to improve, expand and innovate options trade to meet future growth predictions and challenges, and how will Options Panda ease the interoperability of it’s products with other protocols?
Giant Panda: We’ve completed the first milestone of launching Option Panda. Right now we’re focusing on expanding the recognition among crypto communities and make people aware of that Option Panda is the best in kind options trading platform that they could use to leverage their trading power.
Andrés M. | Satoshi Club: How are the fees on your platform?
Giant Panda: Concerning interoperability with other protocols, it’s very easy for lending platforms or multi-strategy platforms to simply call a function() in our smart contract to automatically sell or buy an option. Other protocols could easily retrieve data from Option Panda smart contract. We’re looking forward to discuss integration with other protocols built on Binance Smart Chain. But anyway, so far most protocols built on BSC is very naive and simple copycat from available Ethereum ecosystem protocols. Thus it would take time for them to comprehend a complex product like Option Panda.
Giant Panda: Option Panda charges 1% from the profit of buyers/seller. A very tiny percentage compared to the profit prospect of an option position. We’ll use all that revenue to buy back and burn OPA. Therefore the platform revenue only benefits OPA holders. Those rules are all writen in the code and could not be changed by anyone
Gold Rocket | Satoshi Club: Therefore, there are such projects as OPA! To bring the best in crypto
Andrés M. | Satoshi Club: Low fees and great trading tools, good combination.
Giant Panda: fees are charged only when you have made a profit
Andrés M. | Satoshi Club: Btw, how do you deal with the liquidity of the platform? How to increase it?
Giant Panda: Options product are not easy to comprehend. We’re working on to educate more users to leverage this powerful tool. Although we’re just launched and doesn’t have a lot of users so far. There is no liquidity crisis with Option Panda. Option Panda doesn’t rely on liquidity depth to survive. No matter we have a big or small user base, it could function well as designed.Big user base=big underwriting power, small user base=small underwriting power. It doesn’t affect the normal function of Option Panda.
Gold Rocket | Satoshi Club: Thanks for your answers! Ready to proceed to the next question?
Giant Panda: yes. let’s move on
Q2 from Telegram User @Brainchest
What are the risks if I hold money in the BNB- Put Underwriting Pool? At the moment 1124% APR for me is more attractive than trading options. But surely such a rate could contain ” Traps ” and I could lose money? Or is it a completely safe and guaranteed bet?
Giant Panda: If you hold money in the BNB put underwriting pool, in one way, you have revenue from the BNB call option buyers, who will pay USDT to purchase options from the pool; in another way, you will bare the risk that BNB has a sudden spike therefore the exercise of BNB Call options holdings might cause you lose a tiny amount of principle. Please bare in mind that Option Panda is providing high frequency options underwriting functionality. Therefore the impairment is very “tiny”. You can’t expect BNB to spike 30% in 5 minutes or 30 minutes, right? Even if it does, the automatic sigma adjustment would compensate you with higher option fee revenues. That’s means the buyers will have to pay you more to acquire options from you.
Also, as Option Panda settle options in fiat term, a simple calculation would reveal that you don’t lose money in fiat terms.
Giant Panda: To sum up, your funds is SAFE, no traps. Please take some time to DYOR. We have illustrations in our documentation. https://docs.opanda.io
Gold Rocket | Satoshi Club: safety first
Andrés M. | Satoshi Club: Let’s check it Satoshiclubbers, is time to educate ourselves!
Giant Panda: However, it’s not a guaranteed bet. If no users are buying a BNB call option, you will notice that the APR will go 0. Which means as BNB call pool contributor, you don’t have any revenue in a certain time period.
It’s all a dynamic process, depending on a lot of factors. I can ensure you that it makes sense and is fair.
Andrés M. | Satoshi Club: What others pools do you have on the platform?
Giant Panda: so far BTCB/ETH/BNB. we’ll add more underlying assets like LINK/LTC/DOT in the coming weeks
Gold Rocket | Satoshi Club: thank you very much for the detailed answer! ready for the next question?
Giant Panda: ok. let’s move on
Q3 from Telegram User @Ajpaa
The option value in your ecosystem is said to be composed of intrinsice value and extrinsic value. What is the difference between the two values? How does the intrinsic value measure profit? How does Extrinsic value rises with increase in volatility in the market? How does this help a user make better decision to maximize profit in your ecosystem?
Gold Rocket | Satoshi Club: Great! Thanks for sharing
Giant Panda: As Option Panda is only underwriting At The Money options, intrinsic value with any buyer is 0. For the difference and explanation of intrinsic and extrinsic value, you can read here: https://docs.opanda.io/untitled/6.-what-is-an-options-intrinsic-value-and-extrinsic-value
Extrinsic value is also sometimes called time value of an option. All options underwriten and bought on Option Panda only have time value till expiry.
The volatility of an underlying asset will be automatically adjusted by the system, depending on the usage/utilization of the system. It’s also a dynamic process.
Andrés M. | Satoshi Club: Btw, great job with this guides, I agree with you that option are an interesting but complex concept. Do you have more guides like this one to learn more?
Gold Rocket | Satoshi Club: Yes, in this industry it is very difficult to understand without a good guide. thanks for taking care of this
Giant Panda: We’re making video tutorials. Soon to be released. So that people will learn how to use Option Panda. Right now we are in the infant stage of growing, I have confidence that soon people will learn our platform. Savvy investors should start from the tutorial we write from here.
Gold Rocket | Satoshi Club: Thank you very much for your answers! ready for the next question?
Giant Panda: hold on. Let’s me have some water
Gold Rocket | Satoshi Club: Oh! this is a martini
Giant Panda: Back. Ready to go
Q4 from Telegram User @pratze
I read that OptionPanda is a decentralized option underwriting and trading exchange. As OptionPanda operates in a decentralized environment, it pools real underlying asset as collateral to guarantee option underwriting. how does OPA’s underwriting mechanism work? What are the benefit that user got by using this system?
Andrés M. | Satoshi Club: Haha
Giant Panda: For underwriting mechanism, you should read: https://docs.opanda.io/untitled/12.-what-is-option-pandas-option-underwriting-mechanism Five available expiry durations, 5 minutes, 15 minutes, 30 minutes, 45 minutes and 1 hour, will be offered at Option Panda’s initial launch.
Option Panda adopts an auction-like option offering mechanism. Every cycle, after the old option expires, new option with the same expiry duration will be generated with a fixed offering amount. This offering amount is calculated based on the availability of underwriting pool at that moment. Buyers are able to purchase the option until the upper limit is hit.
Giant Panda: Users can easily buy/sell an option with ease and transparency, which you cannot enjoy with the same favor in centralized exchanges like Deribit. Deribit or other centralized option exchanges are basically marketplaces. Their option pricing mechanism is not transparent and has a lot of traps, which is not a fair play for small players. For option sellers, you can pool together to enjoy the revenue paid to you by option buyers; For option buyers, you can leverage the advantage of options to gain more profit with tiny amount of principle.
As an option buyer, you enjoy the upside or downside leveraged profit if the option you hold expires in the money.
Example 1: If you paid 50 USDT to acquire a BTCB call option with a strike price of $35,000 which expires in 1 hour, and it expires at a price of $36,000, you made a profit of $1,000 in 1 hour. 20 times the principle you put in.
Example 2: If you paid 50 USDT to acquire a BTCB put option with a strike price of $35,000 which expires in 1 hour, and it expires at a price of $34,500, you made a profit of $500 in 1 hour. 10 times the principle you put in.
Andrés M. | Satoshi Club: Incredible, now I see the big benefits.
Giant Panda: Both examples are quoting the similar parameters therefore they’re true and not fabricated. This is the magic of options trading.
Gold Rocket | Satoshi Club: the benefit is obvious
Andrés M. | Satoshi Club: Yes, big profit
@PappaPanda thank you for the clear explanation. Btw, one of the most important thing on trading platforms is the safety of funds. So, have you been audited? What was the results of the auditing process?
Giant Panda: Smart Contract of Option Panda has been audited by Slowmist, one of the most well-known auditing firms in the crypto space. The Audit report could be found here: https://github.com/GiantPandaZoo/docs/blob/main/SlowMist%20Audit%20Report%20-%20OptionPanda.pdf
you can also check our deployment links here: https://docs.opanda.io/deployment-links
Gold Rocket | Satoshi Club: thank you for sharing and for being so responsible about the issue of safety
Andrés M. | Satoshi Club: Thanks for share it. Safety first
Ready to proceed with the next question?
Gold Rocket | Satoshi Club: Are you ready for the next question?
Giant Panda: sure
Q5 from Telegram User @andrey_seleznov
I see only one available liquidity mining farm OPA-USDT on pancake swap. Traditionally it is not the best idea to farm a token vs the stable coin due to a risk of impermanent loss. Do you plan to open more farms with more altcoin pairs? Do you need to partner with other projects to create new farms or can you just pick a random token by yourselves?
Giant Panda: We are having the OPA-USDT liquidity pair token staking because we want to encourage people to provide liquidity on Pancakeswap so that in the future majority of OPA trading will happen on decentralized exchanges. Impermanent loss is the phenomenon when you don’t have enough liquidity with a trading pair. That’s exactly what we are trying to solve with the OPA token incentive.
For the second quesiton. Yes. We’re going to open more farms. The next step is, we’re going to allocate some OPA to reward liquidity provider for Underwriter_Token/Underlying_asset liquidity pairs. Take your case as an example. If you have put 10 BNB into the BNB call underwriting pool, you will get an equivalent amount of BNB_Put_Pool_Token in your wallet, which represents your share/ownership in BNB call underwriting pool. That ownership token should correspond to the 10 BNB you put in to the pool. Therefore, we are planning to use OPA to incentivize BNB_Put_Pool_Token/BNB liquidity pair providers so that users will have another choice and better liquidity to exit his/her position.
This is the underwriter token in my wallet after I contributed asset into pool
Andrés M. | Satoshi Club: Amazing, it seems great new features are coming for OPA, could you share us your roadmap? What else is coming for your platform? What is the next big step?
Giant Panda: Concerning partnerships with other projects, our operating team is actively exploring it and discussing with a lot of projects right now.At its initial launch, Option Panda will focus on providing traditional cryptocurrency (BTCB/ETH/BNB etc.) option trading on Binance Smart Chain, with gradual listing of more underlying assets. In 2021, we are planning to support synthetic asset option underwriting and add CBBC(Callable Bull/Bear Contracts), which is a variant of options, to expand the product line. It’s also a work in progress to support Ethereum Optimistic Rollup network, Arbitrum, Cartesi, Polygon(previously Matic) network etc., for users of those public chains to trade options.
Arbitrum already released its beta version of mainnet. We are looking into it. Matic is already a working mainnet, probably more close. Once we are deployed, Ethereum community members could also use Option Panda to buy/sell options. 1. Listing of more underlying assets; 2. deployment on Arbitrum or Matic. These two are the most actively explored efforts by us right now.
Gold Rocket | Satoshi Club: Yes, a lot of work. By the way, can you share your roadmap with us?
Andrés M. | Satoshi Club: Don’t forget to share the coming announcements with our community
Andrés M. | Satoshi Club: Thanks for the excellent answers. Is time to proceed with the last question of this first part, ready to go?
Gold Rocket | Satoshi Club: Thanks!
Giant Panda: ready
Q6 from Telegram User @indomiekuy
I read from your site that OPA holder control the governance power of OptionPanda and will benefit from the platform revenue buyback & burn activity. I’m quite exciting since you have buyback and burn system, could you explain how does your buyback and burn system work? Have you schedule it or only do them for special event?
Giant Panda: Right now we have small user base and tiny revenue, therefore it’s a special buyback & burn event. When we are growing bigger, we plan to let the community decide. We’re planning it. Actually not only for the buyback & burn, but for the entire platform governance affairs. The plan is: (1) a vote page will open on snapshot.page for Option Panda governance; (2) the manager ownership will be transferred to the smart contract of governance; (3) The community(OPA holders) will vote to determine Option Panda governance affairs. (4) the smart contract will be executed. As we’re going to open more functionalities and have bigger plans for Option Panda with our roadmap. The transfer of governance ownership might happen later this year. But we’re soon going to have the voting function open to community members first. The first stage plan is to letting OPA holders to vote for new underlying asset listing on Option Panda. For example, OPA holders could vote to list LINK/DOT/LTC/SNX etc. for option underwriting on Option Panda.
Part 2 — live questions from the Telegram community
Q1 from Telegram User @Jonahapagu
Option Panda’s pricing mechanism for its options is said to be transparent and strictly follows the Black-Scholes formula, and that Nobody can manipulate the option price on Option Panda as it is calculated by smart contract according to specified rules… so how does Option Panda maintain a transparent pricing mechanism for its Options while using the Black-Scholes formula, what are the advantages of using this Formula for your Options, and what kinds of specified rules do you have in your contract to disable manipulation of the price of an option in Option Panda
Giant Panda: The pricing formula is writen in the contract. Therefore no one is able to change an already deployed contract.
Q2 from Telegram User @Antoni_azx
Option Panda has a Fiat Basis option in USD stablecoin used for premium paid by option buyers to any option underwriting pool on Option Panda, can you share the concept of a premium paid option and a underwriting pool? How does this Fiat Basis is better than the implemented in other platforms like Hegic?
Giant Panda: For comparisons, please read: https://docs.opanda.io/untitled/5.-what-is-the-difference-between-option-panda-and-hegic Hegic has internal flaws in its design in our opinion. Both buyers & sellers on their platform doesn’t have any advantage against each other.
Q3 from Telegram User @MaxiVV
If Option Panda is a decentralized options underwriting & trading exchange, which supports Ethereum, Binance Smart Chain and its similar peers are Hegic and Binance Option, semi-decentralized and centralized in nature respectively. Could you say Binance is one of your major competitors? How do you face it? What plans do you implement for growing community when you compit with one of the biggest and favorites crypto exchanges?
Giant Panda: Binance option, first, we’ve done some comparisons and found out that their option pricing is 2x the normal price. Therefore, Binance charges an option buyers double fees which is unfair. Another fact is that you cannot underwrite an option on Binance. That is to say, only Binance itself could charge option buyers crazy fees to enjoy the profit. On option panda, you could choose freely to be an option buyer or seller.
Concerning competition. yes, Binance is very strong in marketing and has a large user base. But decentralization is the very thing that will interrupt centralization and make it a fair play for all users. We’re still in an infant stage. Small but growing.
Q4 from Telegram User @sheikhhsaab
Any benefits for holding $OPA in long-term? i mean reward system for the OPA holders
Giant Panda: We hope people could recognize the long-term value of OPA. If we grow big enough, OPA holders will have very big reward.
Q5 from Telegram User @messilolz
What was the reason to list on Gate. io exchange and will you list on Big Cex like Binance etc in the future?
Giant Panda: We’re talking with other CEX for listing. A lot of second tier CEX come to us for listing cooperation. We’ll announce it when we have more concrete steps.
Q6 from Telegram User @lzamg
I’m interested to know about the fees charged for using Option Panda. Is your platform free to use? If not, would you tell us how do you calculate the fees? And what are these funds used for?
Giant Panda: Option Panda charges 1% from seller or buyer’s profit. We’ll use that profit to buyback & burn OPA.
If you made $100 profit, Option Panda smart contract charges $1 and send that $1 to an address for future buyback.
Q7 from Telegram User @cryptonation2
Can you give me your github and also a YouTube channel or platform where you will upload your videos for guide?
Giant Panda: https://github.com/GiantPandaZoo/OptionPandaContract We don’t have Youtube channel ready yet. But it will be available very soon.
Q8 from Telegram User @surendra040
What is the best features in option panda for derivative trading and how easy it is to use for new users ,any video guide or tutor available?
Giant Panda: savvy investors should read our docs, it’s all there. https://docs.opanda.io
Q9 from Telegram User @Tahsinahmett
How do you expect the community to help the project grow? Do you have an award or ambassador program that we can participate in?
Giant Panda: Yes. we have ambassdor program. Please join our tele channel to discuss it. We have CM there to respond you. https://t.me/opandaofficial
Q10 from Telegram User @cryptofollower
Option Panda is a decentralized options underwriting & trading exchange which supports Ethereum and Binance Smart Chain. But there are currently BTCB, ETH and BNB right now. Do you plan to add the tokens that uses Ethereum and Binance Smart Chain networks too? Also how does system calculates Option Premium and Strike Price? Where do you get the data and which formula do you use?
Giant Panda: For option pricing formula, please read: https://docs.opanda.io/untitled/13.-how-the-price-that-i-have-to-pay-to-buy-an-option-is-determined-by-option-panda
Part 3 — Quiz Results
In the final part we tested your knowledge in terms of OPA. They’ve prepared 4 questions for this part. The total reward pool for quiz was 300$.