Siren
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Siren

3Q2022 Siren Protocol Update

Illustration by Christine Foltzer

During the third quarter of 2022 the Siren team focused on solidifying our platform and stress testing the major release that launched in 2Q. We also began setting our sights on new research that will lead to new product development opportunities in the future. The market slowdown has given us the chance to regroup and focus on making decisions with intention.

Bear markets are a powerful time for creation for teams that act strategically. Those of us working on Siren intend to weather this storm and use the time wisely to strengthen our product and continue to iterate to find the kind of product-market fit that will take us successfully into the next bull cycle.

Highlights of this quarter include:

  • The protocol continued to be stress tested in the volatile market environment without major issues. This seems like a boring update, but on this front no news is great news!
  • Siren executed weekly Direct Buy auctions with market makers to bring consistent premium yield to WETH and USDC pools. The team scaled operational procedures to support more simultaneous strategies, which will allow us to grow in the future.
  • Siren and market makers resolved our first instance of a settlement price dispute, where the Chainlink price didn’t match the prevailing market price. This issue is the kind of edge case that never happens in testing, only through running the system and adapting to new inputs. A more robust dispute resolution mechanism has been slated for development in a future version of the protocol.
  • Work continued on a new visual identity for Siren. We hope to release updates on that project soon.
  • With the help of bug hunters on Immunefi, we resolved a potential vulnerability that might have created issues for future liquidity pools. Existing pools were not affected, and the loophole has since been closed.
  • The development team overhauled the front-end of the Siren, focusing on load time and visual polish. As our UI and strategies became more sophisticated, the app had to load increasing amounts of data. This new front-end update optimizes the code that delivers information to the user, bringing faster load times as well as a more informative interface. This update is in the final review stages and is being deployed to production this week.
  • Siren began collaborating with a new research collective for options and other derivatives called IV League DAO. Some of the contributors to Siren worked on a research piece thoroughly evaluating automated options strategies and creating a quantitative framework for designing more sophisticated strategies.

4Q2022

Moving into the fourth quarter, our goal is to anticipate the needs of users in the maturing defi options space and continue to grow our product, both in terms of solidifying our existing product and creatively exploring new growth paths.

Plans for Q4 include:

  • Introducing a partial collateralization and risk-management system. Partial collateralization opens the door to capital efficiency and expands the design space for options strategies. Capital efficiency is the major driver of liquidity, and in order to compete with centralized options marketplaces DeFi options protocols must implement a robust margin management system.
  • Releasing a new visual identity for Siren across all platforms.
  • Improving the price dispute resolution system for oracle settlement. Chainlink price feed often lags behind the centralized feeds as well as shows different prices on different chains (e.g. Ethereum vs Polygon). This creates the need for a more flexible settlement price setting mechanism that allows for an efficient dispute resolution.
  • Collaborating with the IV League research DAO to test new strategy designs in options trading for capital providers and stakers.

Our goal at Siren is to become the leading, easiest to use protocol for options settlement and (semi-)automated strategy implementation. Our promise to you is that we will continue to innovate, improve our product and our brand, and bolster our relationships with liquidity providers and market makers. If you are a market maker interested in trading on-chain options or an LP looking to become more involved in Siren, please get in touch.

As always, thank you for your support as we continue to navigate the exciting, ever-changing waters of decentralized finance.

- Tishana, SeaFi, and the rest of the team at Siren

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Siren

Siren

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A distributed protocol for creating, trading, and redeeming fully-collateralized options contracts for any ERC-20 token on Ethereum.