Thread by @drakeondigital

I researched DOPEX and this is what I found

**This is only the surface, The Rabbit Hole is much deeper

@dopex_io was designed to maximize option liquidity,minimize losses for option writers, and maximize gains for option buyers.

The main difference w/Dopex and other option platforms is the assets in the contract between settlement times are not sitting idle, they are put to work

Enter the SSOV
(Single Staking option vault)

These bad boys allow users to lock up tokens for a specified period of time and earn yield on their staked assets.

Users will be able to deposit assets into a contract which then sells your deposits as call options to buyers at fixed strikes selected upon expiry

So Here’s how SSOVs work for the Option Sellers (AKA writers)

For the SSOV (Option Buyers) 

•Similar to other option platforms, just buy and go 

•Tells you break even price as well as a calculator it Will look something like this to show price points you must be at to be in profit and cover costs.

Potential Outcomes For the Seller

If option is on the money or way on the money then depositors dont lose in USD value, only in asset value so if ETH terms then lose some ETH

If your deposit was 1k (1ETH at the beginning) and ETH is 2k now you would be left with .5 ETH+premiums

Potential Outcomes For the Buyer
•Contract expires out of the money (below strike price if call option/ above if put) loses premium cost

•Contract expires in the money ....in profit (chart will look like this

(strait line is no bueno but the vertical is nuts n ham)

EXAMPLE:
I deposit 10 ETH into the SSOV vault at a 2000$ strike price with ETH trading at $1570 at time of writing).

The Epoch duration is from July 29th to August 26th) (yes I know this is in the past the new epoch is not up yet)

If I deposit into the Vault my ETH will be locked until the end of Epoch but a couple of scenarios can happen;

1.ETH stays below 2k. I get my 10ETH back+premiums

2.ETH goes above 2k, I lose some of my 10 ETH but will still have my same dollar amount that I started with+prem

The point of maximum profit for the option seller (depositor) is right at the strike price.
The reason being is that your assets have appreciated to the maximum price before they are sold, and you still get the premium.

The reason the depositor would get all his ETH back in this case is because the buyers options will expire worthless because his option is the same as the market price.

A covered call is great for a short-term hedge on a long position and is a great way to get an additional yield. But these are not without risk so dont use this as a place to APE with your Hodl bag unless you understand what you are doing.

Recap
SSOV depositors will not be at risk of losing any USD value when staking their assets. However, if the token gigga pumps then they are at risk to losing some of the deposited asset (not in dollar value).

If the option expires with the buyer in the money They will get your additional assets - the premiums that were paid. You can use options as a taking profit point at the strike price and getting paid premiums to do it.

Lets take a break

We will go into Atlantic's in another thread but if you want to read more
here is my substack.....video thooonnnn

also shoutout to @0xsaitama_ for all his patience in answering my redundant questions 😜

drakeondigital.substack.com/p/dopexwhat-is…

enjoyed this thread and brought any value.... Sub for more and share with a degen

https://twitter.com/drakeondigital/status/1566573945641439233

one other thing to mention:
There are many other features and Tools set to be rolled out on Dopex and these are just a few of them I barely into the rabbit hole and Im already lost. The team is constantly innovating and IMO is disrupting the options space/Defi as we know it.

From SSOV’s to Straddles and Synths soon. Dopex is aiming at a multi-trillion dollar sector, and grabbing a fraction of the pie will be well…..sweet

#dopex
#OptionsTrading
#options

Here is part 2

https://twitter.com/drakeondigital/status/1566796969305055234

For those who dont like to read like me

Part 3

https://twitter.com/drakeondigital/status/1567174303623401474