1/n (potential) Airdrop/Defi Alpha : @opyn_ & @VisorFinance
Opyn is an options protocol funded by the likes of Paradigm, Coinbase Ventures and other big names and they have an upcoming launch of a super-charged derivative called SQUEETH. aka Squared ETH aka ETH²
Opyn is an options protocol funded by the likes of Paradigm, Coinbase Ventures and other big names and they have an upcoming launch of a super-charged derivative called SQUEETH. aka Squared ETH aka ETH²
2/n This is similar to Index Coop's ETH2X-FLI product that is meant to offer 2x leverage on ETH
Simple example : ETH price increases by 10%
ETH2x-FLI => 20% 🥳
SQUEETH => 100% 🤯🤯🤯
launch dates below👇
Simple example : ETH price increases by 10%
ETH2x-FLI => 20% 🥳
SQUEETH => 100% 🤯🤯🤯
launch dates below👇
https://twitter.com/opyn_/status/1468765218822098946
3/n The cheapest and safest option is probably to sell puts.
Maturity : ETH 31 Dec 2021
Strike : $1280
Contracts : 5 oTokens (costs ~$3000) at 45% colletoral
Liquidation : ETH price falls below <$1900 by maturity
Reward : 25 usdc 🎉🎉🎉
Maturity : ETH 31 Dec 2021
Strike : $1280
Contracts : 5 oTokens (costs ~$3000) at 45% colletoral
Liquidation : ETH price falls below <$1900 by maturity
Reward : 25 usdc 🎉🎉🎉
4/n Now Visor is a project that offers automated concentrated liquidity for Uniswap V3 pairs. They currently launched a vault for ETH2xFLI and the ETH pair. The apy is a whopping 42%. And its paid in ETH!
5/n The reason Visor can offer such high yields is because they are focusing the liquidity in a tighter range. Meaning the capital is made to work harder leading to more returns for the LPs.
Also these are *pure* yields. As in not created through token incentives.
Also these are *pure* yields. As in not created through token incentives.
6/n Some napkin maths on visor's ETH2x-ETH pair :
Assuming the 42% yield stays constant
If ETH goes up 50%
=> you'd earn 56% MORE ETH in a year
=> That means 10ETH 🪄 👉 15.6ETH
And you'd only start losing nominal ETH if it falls by more than 45% (around $2200 atm)
Assuming the 42% yield stays constant
If ETH goes up 50%
=> you'd earn 56% MORE ETH in a year
=> That means 10ETH 🪄 👉 15.6ETH
And you'd only start losing nominal ETH if it falls by more than 45% (around $2200 atm)
7/n So ETH2x-ETH vaults on visor are great, but whats that got to do with SQUEETH?
Well it looks like visor is perfectly positioned to provide concentrated liquidity for the up and coming SQTH-ETH pair.
"Hey we're definitely super interested in this"
(source : visor discord)
Well it looks like visor is perfectly positioned to provide concentrated liquidity for the up and coming SQTH-ETH pair.
"Hey we're definitely super interested in this"
(source : visor discord)
8/n If the ETH2x-ETH vaults were good.. imagine the yields on the SQUEETH-ETH vaults?
So... did some more napkin maths assuming the same 42% yield from vaults. Surely this is incorrect🤔, but ill just rely on Cunningham's law. Somebody correct me pls
So... did some more napkin maths assuming the same 42% yield from vaults. Surely this is incorrect🤔, but ill just rely on Cunningham's law. Somebody correct me pls
9/n None of this is financial advice and I'm terrible at maths so please DYOR
I think the maths is right guys...
Squeeth can in fact counteract impermanent loss🥳
Squeeth can in fact counteract impermanent loss🥳
https://twitter.com/haydenzadams/status/1468782648671850498?t=rXJ1rP03QmAvOBsSCE1gzA&s=19
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