1/ @UMAprotocol (Risk Labs) got rugged by a US bank this week...
This bank closed our accounts because they didn't like us having any involvement in crypto even though we are just employing a team to do software development... 2/ No phone call or e-mail to inform us - just a physical letter sent to our offices which nobody saw because of COVID and the holidays.
Logged into the account one morning and the balances were all ZERO.

1) Liquidity mining rewards should be paid with KPI or call options built on @UMAprotocol .

The launch of L2 solutions will bring a new round of farming rewards as projects battle for assets. These mining rewards need to be updated - let’s welcome...

👋Liquidity Mining 2.0 👋 2) Using KPI or call options for LM will:
👍 prevent farmers from dumping a project’s token regardless of price
👍incentivize farmers to learn about the protocol and potentially contribute to the community
👍give more rewards to farmers if the protocol performs well

WIN-WIN-WIN

0) The first call option token built on @umaprotocol settled last Friday. It was a call on $UMA with a $35 strike (UMAc35-0421) that expired worthless. I tallied up some trading stats and have some observations to share… 1) The contract settled using @umaprotocol’s Optimistic Oracle. A price of $25.672 for $UMA/USD was proposed with no dispute and approximately 2hours after expiry the contract had settled and users could redeem their collateral.
etherscan.io/tx/0x243c4b69f…

I just sold some UMA call options (UMAc35-0421). Looks like a good trade for a holder of $UMA. You either make 64% annualized picking up premium or you sell UMA 68% above the market. Options weren’t my specialty so let me know if my thinking makes sense. Here’s what I did... The $35 strike that expires on April 30th trades on SushiSwap at 6.1% of an UMA. Plugging in everything that's known into a Black-Scholes calculator on the web, this implies a 166% annualized implied volatility. (6.1% * $22.14 = $1.35 - I tried my best to match that put price)