Product Recipe

Perpetual Option

Points:

  • Options with strike prices based on Uniswap ticks.

  • Strangle and Spread can be composed.

  • Option is curved and has a slow Gamma.

Call/Put Option

Describe the basic positions that can be expressed using Uni LPT. Example:x=ETH,y=USDC,s=PtwapExample: x = ETH, y = USDC, \sqrt{s} = \sqrt{P_{twap}}

①: exchange USDC for ETH and mint LPT.

②: mint LPT with USDC.

③: borrow ETH and mint LPT.

④: borrow ETH and mint LPT.

⑤: borrow ETH, exchange it for USDC, and mint LPT.

⑥: borrow LPT, exchange ETH in LPT for USDC, and use the USDC as Margin for LPT.

⑦: borrow LPT and use the USDC in LPT as Margin.

⑧: borrow LPT and use the ETH in LPT as Margin.

Strangle/Spread Position

⑥ + ⑦: Simply combine ⑥ and ⑦. By having a range (described below), it will be close to the Predy v2 gamma long (Delta Neutral).

① + ⑧: By using ① as Margin for ⑧, the required margin can be minimized.

  • Borrow LPTk1LPT_{k1} at ⑧ and burn.

  • Exchange USDC in LPTk1LPT_{k1} for ETH.

  • Mint LPTk2LPT_{k2} using ETH in ①.

  • LPTk2LPT_{k2} as Margin for ⑧.

④ + ⑤:

  • Borrow LPTk2LPT_{k2} at ⑤ and burn.

  • Exchange ETH in LPTk2LPT_{k2}for USDC.

  • Mint LPTk1LPT_{k1}using USDC in ④.

  • LPTk1LPT_{k1} is used as Margin for ⑤.

Option Curve

By having a range, a gradual change in gamma can be achieved in ① ~ ⑧ above.

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