Thread by @dextfprotocol

Dear community, we heard you and we delivered. We are announcing here the soft launch of two new products that we have been working on for the past couple weeks:
1. The Marketplace (a new tab on our Dapp is now visible)
2. Structured Floored Token (SFT)
(1/15)

P.S: We are going to launch to the wider public both products with the feedback/suggestions that we receive in the next 10 days.
🙏🙏
(2/15)

If you have followed our project since the beginning (thank you!) you'll remember that we've launched the first DeFi-native structured token on the market (to our knowledge).
(3/15)

We called it CSPT (Capital Protected Structured Token). We decided to rename it Structured Floored Token (SFT).
(4/15)

Two main reasons:
1. A Floored Token is more evocative of the notion that the token will expire, in the worst case scenario, at par, i.e. $100. Which means that if you buy it for > $100 you may lose the difference in case the underlying expires below the strike price.
(5/15)

2. It has a floor but it has no ceiling, which means that if the underlying goes up, you fully participate in the upside without a cap.
(6/15)

We launched in October the very first product to understand market interest. Naturally, some problems had arisen:
1. Liquidity
2. Pricing
(7/15)

In particular, Uniswap-like LP are not suitable for assets with a) non-linear payoff (if market goes down you don't lose much and if market goes up you gain a lot or vice versa) and/or b) time decay (the embedded option in our SFT loses a bit of value every day).
(8/15)

Both these features tend to exacerbate impermanent loss and hence lower the liquidity and makes pricing less reliable.
(9/15)

Here, we introduce the Marketplace in DEXTF, a new feature, which provides a DEX for structured tokens, where you can buy and sell, as well as redeem your SFTs. This is a quote-based Marketplace not subject to IL.
(10/15)

In an initial phase, we will maintain this Marketplace and offer liquidity ourselves but we plan to open it up soon and allow liquidity providers (and this will be very interesting for the arbitrageurs in DEXTF) to participate.
(11/15)

This new SFT is built using the yield generating ycurve and an Opyn call option on ETH with strike $666 and expiry on 24 September 2021 and will have a floor at $100 and initial price at $101.
(12/15)

The SFT will give you a participation in the upside of ETH of ~20%. i.e.:
if ETH goes up by 50% from $666 at maturity, you'll profit 10%
if ETH < $666
you'll get back $100 (regardless of the price paid)
(13/15)

Here is a sneak peek

(14/15)

Let us know what you think about it in the comments below or join our community chats in Telegram or Discord to discuss more!

(15/15)