Thread by @CryptoGideon_

If you are a trader who loves perps, then you are gonna love Option Scalps.

They are more cost-efficient for quick trades, with no closing fees.

Or if you love providing liquidity, Option Scalps offer you NO DOWNSIDE!

A thread on @dopex_io new product & trading competition🧵

1️⃣What is Scalping?

In scalping, you speculate on directional volatility in short time frames.

Positions can be taken in:

🔷Long-price⬆️
🔷Short-price⬇️

Since short time frames allow less volatility, scalpers may choose to leverage positions to amplify their returns/losses.

2️⃣What are Option Scalps?

Option scalps are constructed as isolated pairs consisting of a base asset(e.g. $ETH)and a quote asset(e.g. $USDC)only.

When long $ETH scalp position is opened,trader deposits $USDC as collateral.

$USDC from the $USDC pool is then swapped into $ETH.

3️⃣Option Scalps

Traders will pay an option premium to the scalp liquidity pool.

Premium and fees are determined by:

•Time
•Collateral size

Higher the time frame and collateral, the higher the fees and premium.

Fees are also less than those on other perp protocols.

4️⃣Example

From this example, you can see how long and short positions work.

If you set a long position at 50x leverage and the price of $ETH increases 5%, your profit is 250%.

But, if you open a long position and the price of $ETH falls by 1% you incur 50% loss.

5️⃣Liquidations

Liquidations are calculated based on:

✅Leverage

If the price passes liquidation, liquidity providers will get the scalper’s $ETH that has been sold and their slashed collateral.

@dopex_io design protects liquidity providers in full.👌

6️⃣For traders📈

Select:

•Token: $ETH or $ARB
•Long or short position
•Time frame-1m, 5m, 15m, 30m, or 1hr
•Leverage-5x to 110x

Traders must post collateral which will be determined by their leverage.

Traders can close positions at any time.🔥

7️⃣For Liquidity Providers💸

You can provide single-sided liquidity for a scalp pool:

✅$ETH for shorts.
✅$USDC for longs.

Scalp LP is relatively risk-off since shortfalls are covered by liquidations and the scalper’s collateral.

LPs may withdraw their liquidity at any time.

8️⃣Benefits-For traders

You may ask yourself “why would I trade on Dopex scalps?”🤔

✅Cost-Efficient: Opening a 1-hour scalp position costs a flat rate of ~0.15% on position size

✅Asset Exposure: Scalps use isolated pools which means any asset that has an IV feed can be traded

9️⃣Benefits-For LP

✅Risk-minimized:
Profit is paid from a relative appreciation of swapped assets-LP collateral does not get slashed

✅Amplified utilization:
Since scalp positions may be closed by traders, utilization may exceed 100%-more premiums earned

Win-win for both.👏

1️⃣0️⃣Trading competition

@dopex_io is running an option scalp competition right now.

You can join and share a $50k prize pool!🤯
There are rewards for:

•Traders(volume and PnL)
•Sharers
•Threadors

Check the details below:

@dopex_io 1️⃣1️⃣Stats📊

Total Trades Made-1,289
Total scalp volume $4,280,827 $USDC
TVL=$627,351

Users ≈ 211+
The top 2 users are 400K in profit!🤯

Thanks @CadmusBenedict for this useful @DuneAnalytics.
Check yourself:

@dopex_io @CadmusBenedict @DuneAnalytics 1️⃣2️⃣To wrap it up

What is Dopex anyway?

A decentralized options protocol aiming to expand option liquidity throughout DeFi.

Products:

•Atlantic Options
•Option Liquidity Pools
•Insured Perps( $ETH)
•SSOV(Single Staking Options Vault)

More details👇

Tagging $DPX $RDPX fam and those that may like it:

@tztokchad
@bee_926
@DiamondPepes
@cryptobulma
@dLuxGMI
@chutoro_au
@ParaChainz
@TheArbitrumOG
@witherblock
@1sat1c
@0xMrFreeze
@ArbiAlpha
@0xBispo
@Halko500k
@0x_Sats
@CryptoAndAliens
@w33bchad
@0xsaitama_
@xcurveth

@tztokchad @bee_926 @DiamondPepes @cryptobulma @dLuxGMI @chutoro_au @ParaChainz @TheArbitrumOG @witherblock @1sat1c @0xMrFreeze @ArbiAlpha @0xBispo @Halko500k @0x_Sats @CryptoAndAliens @w33bchad @0xsaitama_ @xcurveth If you made it this far, you are in the top 1%.💎

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