Option scalping alongside option perps will be a unique product for LPs and users alike.

Scalpers get access to 1 $eth worth of exposure (long or short) for ~<$10 for a short period of time (<1hr - 5m, 15m, 30m etc.)

LPs get to earn premium and funding with no risk of downside How does it work?

Similar to atlantic straddles - where an option is purchased and it's collateral is borrowed.

However, here the entire collateral is swapped to the other asset in the pair.

The buyer also posts an amount of margin to "fix" their liquidation price.

free alpha for mev/arb searchers/quants etc. who are okay with kyc:

- write atlantic straddles
- since you need only 1 way hedging, buy otm puts at your downside breakeven on deribit
- we will provide option liquidity pools for hedging soon so it could be done all onchain - for now, write a script that purchases deribit puts using ccxt and expiries coinciding with straddles expiries with puts slightly gte downside breakeven
- if naked writing apy is 450% on eth, assuming 50% of epochs expire below downside breakeven...

Atlantic straddle writers from the 1st epoch wrote at an average price of around $1680 $eth.

At expiry, price was $1994. Buyers made a pretty great profit.

But how hard did writers get rugged? They didnt get rugged at all, they lost 0 from settlement and only earned a premium This is pretty cool and different from writing conventional straddles.

The only downside for straddle writers is if prices go down at settlement.

But its a pretty easy hedge by purchasing slight otm puts at the same expiry but a cost < premium.

@consadoeth > no central control and monetary policy being decided on a whim
> legit applications like lending/borrowing which worked very well regardless of the cefi shenanigans
> no paper work/kyc transactions
> easy store of value anywhere @consadoeth > try moving around significant value with banks and notice the amount of questions you get
> not at the mercy of govts / central banks freezing accounts
> risk engines in crypto are a 100x improvement over tardfi where they can cease trading and erase tons

> be a cockroach in the ecosystem and continually contribute - when things turn, you benefit.
> think of it as writing calls on future prices with your time

https://twitter.com/thedefiedge/status/1527272894719479808

> dont believe over the top bears with irrational price targets continually doomposting to reflexively fuel pa into their shorts
> focus on health and wellbeing more since you dont need to spend 12h a day watching charts

Say you're farming with $1m on curve in a fairly stable pool @ 10% apy. Your weekly return amounts to $1923 (1m * 0.1 / 52)

You can use $10k from the $1m (10% of annualized return) to write $1m worth of ATM calls or puts (or both) at 100x leverage for your pool. This earns an additional $120 - $250 (if both) a week (+0.6 - 1.3% APY)

If you're selling calls and pool apy goes to say 15% over the week based on change in gauge rewards, you collect $120 from call premium + an additional 5% on APY ($961) from your $1m deposit

curve pays about 14m in emissions a week for 21b tvl today (3.5% emitted across all pools)

IR gauge weight voting via $vedpx for a share of dpx emissions and decaying bondable rdpx for rate option writers should spur a reflexive loop of curve pool LPs looking to.. fix rates/speculate/frontrun/hedge their crv emissions for the coming week.

There are so many ways to play rate vaults - boosting yield, writing spreads, access to synthetic yield, fixing rates (writing atm calls and selling upside), buying up atm strikes..

all memes aside there are fundamental prospective value adds with $jpeg that can't be ignored apart from the memetic ticker and total supply that crypto retail loves

say there's a dao holding a 100 punks and wants liquidity for them, they'd purchase ~8 punks worth of $jpeg which would be around 1.6% of current market cap
and 12.5% of all current jpeg/weth liquidity. also it'd represent only 1% of the entire punks collection.

so if @JPEGd_69 has to scale, jpeg should technically go up to accommodate all the demand for liquidity

1. I've been a little quiet lately here with the alpha, takes on the market and profitable/low risk option plays, guess it's time to unravel what we've been working on over the last 6+ months,

@dopex_io

*D*ecentralized *op*tions *ex*change or dopex for short 2. Currently decentralized option protocols seem to share a few problems which are usually:

* Low liquidity
* Unfair pricing - for buyers and/or writers
* Lack of composability
* Lack of user adoption
* Lack of protocol adoption
* Unfair arb opps during times of high volatility