DeFi & Options
CLAMM. rDPX v2. SSOVs. Wot mean?!
Dopex has a lot of different products and it can be difficult to figure out how they work, what they do, and when you would want to use them.
Read here for our product explainers that will explain just that.
🔖 Our Product Stack Explained:
💰 Single Staking Option Vaults (SSOVs)
Introduction to SSOVs
🌊 Dopex v2: CLAMM
CLAMM for LPs
As a CLAMM LP, you are depositing v3 liquidity on Dopex and receiving far more efficient utilization than standard LPing with no (or minimal) opportunity cost - i.e. more yield, same exposure.
If your liquidity is unutilized on Dopex, it will remain in its original AMM. This means there is no opportunity cost relative to normal v3 LPing as your unutilized liquidity remains eligible for standard trading fees!
When your liquidity is utilized by Dopex, it is withdrawn from its original AMM and reserved and you earn a premium paid by option traders. Any impermanent loss you incur is simply given to the option purchaser - once again, this means there is no opportunity cost relative to normal v3 LPing.
There are four big points on CLAMMs for LPs
- Positions remain on the underlying AMM if unutilized and can continue earning trading fees (i.e. baseline yield remains the same)
- Premiums are way more lucrative than standard trading fees (i.e. more yield on the same liquidity)
- Out-of-range v3 liquidity that otherwise do not earn trading fees are now eligible for premiums (i.e. yield on liquidity that is otherwise idle)
- You have identical exposure as standard LPing since we simply repackage your impermanent loss as settlement costs (i.e. v3 LPing = CLAMM LPing exposure)
CLAMM for Traders
For those that used SSOVs, you may have found them rather clunky and unintuitive. Fret not, traders, as we introduce a BRAND NEW option trading experience with the CLAMM.
Flexible Strike Prices
The CLAMM offers a significantly wider range of strikes as we can use any tick as the strike price.
This gives traders much more flexibility on prices they want to hedge or speculate on.
Gone are the days of weeklies and monthlies bootstrapped and expired manually by our beloved Dark King.
Enjoy expiries from 20m to 24 hours on any of your favourite tokens.
“Oh wow, great, my options are printing!”
“Oh bollocks, they have expired worthless. Many such cases.
The CLAMM introduces American-style options, meaning the above scenario is now no fault of our design but a fault of your own - you will now be able to close your positons at any time before expiry!
[video coming #soon]
📈 rDPX v2
For Dopex, this provides a self-reinforcing source of PoL that allows for the vision of $rDPX as a sustainable rebate and incentive system to be realized. For $rDPX and $ETH holders, it is an opportunity to contribute to the system and earn yield in the process.
This is a very high level overview of the v2 system - to understand the mechanics fully, we recommend reading the full rDPX v2.1 System Specification.
We also introduce the concept of Strategy Vaults that allows users to deposit $ETH to earn yield from the whole system while buying $rDPX in the event of a dip.
Beyond the immediate utility for $rDPX and $ETH holders, there are a number of important changes that will be happening to various Dopex users.
We will be introducing a 5% sell-side tax (variable and subject to change) on $rDPX.
Don’t like taxes? Simply bond into the system and this can be avoided!
Our incentives to the rDPX/ETH pool on Camelot will cease as v2 will bootstrap our own PoL - these have been moved to the rtETH/ETH LP.
Want incentives? You already have $rDPX and $ETH - just bond into the system!
What do I do with $rtETH?
Other than being a synthetic version of $ETH that is intended to track its price, $rtETH has a number of utilities for our beloved readers.
Stake your $rtETH on Dopex to earn yield from the v2 Treasury’s underlying tokens - that’s the tokens that you originally bonded in with.
You will also be eligible for additional rewards including a share of 3k $DPX/year and a share of 675,000 $ARB during the STIP period.
An rtETH/ETH liquidity pool will be created on Camelot which will be incentivized with 10 $DPX/day.
This will allow $rtETH holders to exit their positions at any time or LP to earn yield.
You faded $rDPX and yet still think that you have a chance at redemption? Sure, go ahead.
$rtETH may be redeemed for 75% $ETH and 25% $rDPX from the v2 Treasury. The amount of $rDPX to be returned is based on the rDPX/ETH ratio at the time of redemption.
Note that there is a variable redemption fee initially set at 3%.
What do I do with $ETH?
If you are an $ETH holder, you can also deposit into our $ETH Strategy Vault which runs on monthly epochs.
The $ETH strategy vault is the other arm of rDPX v2 that allows users to deposit $ETH to earn multiple layers of yield from:
- Revenue sourced from the rDPX v2 system
- Staking yield (deposited $ETH is staked in a trusted staking platform such as Lido or Frax)
In the event $rDPX falls by more than 25% from its price at the start of an epoch, your $ETH may be swapped into $rDPX - perfect for users wanting to accumulate $rDPX for more bonding.
225,000 $ARB has been allocated to Strategy Vault depositors during the STIP.
Users may queue for withdrawal provided there is sufficient liquidity in the Strategy Vault to support one quarter of $rtETH supply.
What other changes are happening later?
Is this where the so-called “buck” stops? Nay, reader, there is a world of growth available to your favourite blue coin.
$rtETH as Option Collateral
Dopex v2 has a portfolio margin system with cross-collateral support, allowing you to use $rtETH to buy or sell options (on leverage too if you so desire). $rtETH collateral will remain staked allowing you to continue earning yield on your margin.
Of course, this is only the tip of the integrations of $rtETH - as supply grows, we intend to integrate with any and all protocols.
The $rDPX vision was to act as a rebate system for Dopex LPs with sustainable utility.
We have the sustainability. Now give us the rebates.
We will soon be introducing Decaying Bondable $rDPX as a compensation mechanism for Dopex LPs, allowing our option writers to offset their costs by subsidising new $rtETH minting - something never before seen in the DeFi options space.
Wen? Also soon.
[video coming #soon]