EDIT: The SIREN Balancer LBP portal is now live
- SIREN Markets is launching the full version of our decentralized protocol for trading cryptocurrency options.
- SI tokens allow community members to engage in governance for SIREN Markets.
- Liquidity mining and Balancer LBP are the recommended ways to get SI tokens in order to participate in governance.
- 5MM SI tokens will be available on Balancer LBP on Tuesday, March 2nd at 16:00 UTC.
- PLEASE NOTE that Balancer LBP is not a regular Balancer Pool. The starting price will be very high to disincentivize front running and price speculation. Moving too early into the pool will not benefit users. If you’re interested in getting SI tokens from Balancer, we suggest fully understanding the Balancer LBP first and acquiring them after a few hours.
- Share questions or concerns in our Telegram community and we’ll do our best to address them quickly.
- SIREN team members will never message you first for any reason.
Our team is very excited to announce the launch of SIREN Markets, a flexible, decentralized protocol for trading cryptocurrency options designed for sophisticated traders. The goal of SIREN is to provide the high-touch, well-crafted features of a TradFi platform without sacrificing the autonomy, self-custody, and composability of DeFi.
Since the alpha release of SIREN Markets in December 2020, our team has been working furiously to streamline the cryptocurrency options experience for our users. A huge thank you is in order to our early market participants who have made the storm-tossed journey with us so far, submitting bug reports, feature requests, governance proposals, and memes. Together we have brought SIREN to this launch, including over $14MM USD in Total Value Locked in our WBTC and USDC pools.
As part of this launch, we are distributing SI tokens, which the SIREN community can use to participate in protocol governance. This post explains the purpose of SI tokens, how they will be available to the public, the SI token economy, and how to obtain SI tokens if you’re interested in participating in governance.
About SIREN Markets
Siren Markets is a decentralized application used for creating, trading, and redeeming fully-collateralized options contracts for any ERC20 token on Ethereum. Siren Markets (‘SIREN’) is focused on creating a high-quality, seamless experience for sophisticated users and requires no third-party settling mechanism or order matching to complete option settlement on chain.
SIREN fills a unique market niche by catering specifically to sophisticated parties interested in holding and actively trading tokenized options contracts. Unlike any other cryptocurrency options platform, SIREN has tokenized both sides of an option contract, allowing for elements of an options ecosystem that can be traded as easily as a standard ERC-20. SIREN allows for both buyers and sellers to mint, buy, and trade in and out of options positions at any time.
In addition to our unique tokenization model, we have also separated our automated market making (AMM) layer from the settlement layer, which allows us to continuously modify the design of our market making, pool administration, and pricing as the trading volume and liquidity of our platform grows over time. Under this paradigm, a strategy that serves SIREN in our early stage of growth with a limited number of markets and available liquidity does not need to be the same strategy that serves during future high growth periods.
SIREN functions at the top level via governance tokens, which early investors in Siren will receive. The holders of the Siren governance token decide which options markets should be created, and fees generated by the writing and execution of options contracts accrue directly back to those governance token holders.
Liquidity providers, traders, and market makers will also receive governance tokens in exchange for their participation. This mechanism of governance tokens allows those individuals who know the market best to respond directly to market demand.
- Redesign of SIREN trading and liquidity pool interface
- Launch of new DeFi asset pools, starting with Sushi — see SIP-6 for more details
- Converting options exercises to a cash settlement option paying the difference on assets rather than double asset settlement
- Providing a user interface for constructing option spreads natively in SIREN
3Q2021 and beyond:
- Exploring various Layer 2 solutions for improving efficiency and lowering fees
- Providing a user interface for effecting basket trades natively in SIREN
- Modifying SIREN to allow for yielding assets as collateral
The SI token is the SIREN Market project ERC-20 native token. The function of the token is governance. SI token holders will be able to use their SI to vote on or propose new ideas that can be used to improve SIREN Markets. Before the on-chain governance voting platform is ready for SI token holders, core protocol contributors will guide critical decisions with input from the community. We think it’s important to keep governance nimble in the early days of SIREN.
- 34,000,000 SI: Current team, future team, and advisors.
- 10,000,000 SI: Early incubator that invested in the development of SIREN.
- 26,000,000 SI: Previously sold and future unsold positions of investor tokens, to the extent they fully exercise their rights to purchase SI.
- 30,000,000 SI: Ecosystem and rewards, which will benefit traders, LPs, and developers who participate in the SIREN ecosystem.
The total SI token supply will be 100,000,000. All team tokens have a minimum one year full lockup and total four year unlock schedule. All private investors have a minimum one year lockup schedule and a total two year unlock schedule. Details on the SIREN private investment round to be released shortly.
The best way to get SI tokens is through liquidity mining. The first SIREN Liquidity Provider Program (LPP) began in December 2020. The extension of this LPP will continue through May 2021 and rewards will be distributed evenly among our new asset pools. For more information, please see SIP-8, the latest proposal for liquidity mining at the SIREN Governance Discourse.
Balancer Liquidity Bootstrapping Pool
IMPORTANT! PLEASE READ BELOW. DO NOT PURCHASE SI TOKENS TOO EARLY OR FOR ANY REASON OTHER THAN GOVERNANCE OR STAKING.
Another way to acquire SI tokens is through the Balancer Pools. 5MM SI Tokens will be distributed through a Balancer Liquidity Bootstrapping Pool (LBP). Here is a post detailing how Balancer LBP works and the github.
The Balancer LBP will be live for 3 days only and is designed to prevent front-running and speculation. It will start at a high price then go down quickly as the weights of the pool change. This mechanism prevents people from front-running other participants and speculating on SI tokens rather than using them for governance. After the 3-day period, the Balancer LBP will be stopped and part of the proceeds will be used to seed a secondary pool open to everyone. A Pool 2 system on a secondary market (e.g. Uniswap, Sushiswap, 1inch) for providing SI rewards in exchange for providing liquidity to the pool will occur after the LBP.
Below is a chart showing the spot price movement when there are no buy/sell orders on the Balancer LBP. As the chart illustrates, the Balancer LBP has a constant selling pressure to prevent front-running and price speculation.
Balancer Liquidity Bootstrapping Pool Execution
- Create a SI/USDC Balancer LBP with 5MM SI tokens and 1.5MM USDC.
- The Balancer LBP starts from block: 11,960,039 and ends at block: 11,979,690 (approximately 3 days). The start time is around March 2, 2021, at 16:00 UTC.
- The weights will change gradually from the start (SI:USDC = 90:10) to the end (SI:USDC = 30:70) during that period.
- At the end of the Balancer LBP, the Balancer LBP will cease and Phase 2 will begin.
- Using the last price and part of the proceeds from LBP, a new pool will be seeded.
- A Pool 2 incentivizes program will begin to encourage LPs to provide liquidity for SI
We’d like to thank our community for sharing their feedback and opinions regarding SIREN Markets. We are excited to see how the Balancer LBP will result in a wider cohort of governors for SIREN.
Please follow the official SIREN Markets channels for all communications relevant to the mainnet launch, and beware of false or misleading deposit addresses.
⚠️ SIREN team members will never PM you for any information.
Please discuss anything with us on our Telegram!
SI TOKENS ARE NOT INTENDED TO BE PURCHASED AS INVESTMENTS, NOR SHOULD THEY BE CONSTRUED AS SUCH. RATHER, SI TOKENS ARE A MEANS OF PARTICIPATING IN A COMMUNITY-OPERATED AND -GOVERNED NETWORK PROTOCOL.
NONE OF THE INFORMATION PROVIDED HEREIN CONSTITUTES ADVICE OF ANY SORT, INCLUDING TAX, LEGAL, FINANCIAL OR ANY OTHER ADVICE, NOR DOES IT CONSTITUTE A RECOMMENDATION TO PURCHASE OR USE ANY PRODUCT OR SERVICE.
DO NOT PURCHASE SI IF YOU ARE NOT FAMILIAR WITH CRYPTOGRAPHIC TOKENS AND BLOCKCHAIN-BASED SOFTWARE SYSTEMS.
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