mechanism design @opyn_. reformed vol trader. rehabilitated econ phd. here for the mech
Dec 21, 2021 • 13 tweets • 3 min read
1\ SQUEETH is ETH²
It can be used to hedge Uniswap LPs and even options!
The funding rate is the variance of ETH.
What? HOW?!
What does that even mean? Where can I get some? CAN SOMEONE PLS TELL ME WHAT IS GOING ON?
A t🧵read about this…👇 tinyurl.com/squeethfunding
2\ Today we go down a level, looking at the funding rate.
Astonishingly, the SQUEETH funding is ETH volatility^2.
This means squeeth is a volatility oracle. What sorcery is this?!
Dec 16, 2021 • 4 tweets • 2 min read
1/ Hedging Uni v3 with SQUEETH - a thread:
Uniswap LPs are hard to hedge because they are curvy.
Sad. @uniswap2/ Curvy things leave curvy things when hedged
Looks quadratic?!? Maybe I can hedge with x^2 thing??!!