Protocol Overview
Get to know your way around Dopex's ecosystem.
Dopex, a decentralized options exchange, is a venue where users can provide option liquidity, buy vanilla options, or use structured option-based by-products to fulfill their financial inquiries.
Options
Atlantic Options
Liquidity Model
Dopex options are fully-transparent and embedded on-chain through “smart contracts.”
They are identical in structure to traditional European options but with a few noteworthy differences. These include:
- Transparent and visible on-chain with zero downtime.
- Option Collateral can be moved across platforms and chains to conceivably benefit from valuable opportunities.
- Option positions come with an ERC-20 receipt that enables Users and protocols to use as a primary building bloc (OTC, Leverage, etc)
Unlike existing vanilla option configurations - Atlantic options strive to innovate in terms of collateral composability and efficiency in a safe and usable manner. As a new DeFi primitive, they improve collateral efficiency with a simple mechanism and with various practical use cases such as:
- CDP & Perp Protocols Liquidation Protection
- Atlantic Straddles & Atlantic Spreads
- Leveraged Bonding Insurance
- Positioning protocol-wide price floors via treasury
- Setting up “buy the dip” strategies
- And much more.
Dopex uses its own state-of-the-art option pricing model that uses the traditional Black-Scholes model with a proxy that replicates volatility smiles. The model ensures fair and optimized option prices across all strike prices and expiries by coordinating implied volatility oscillations to major CEXes where the majority of Crypto option volume occurs.
Non-Bluechip tokens use rolled-over RV (Realized Volatility) over XXXXX amount of time to create an authentic and accurate market price for these assets.
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Dopex.io Landing Page
SSOVs allow users to lock up tokens for a specified period of time and earn yield on their staked assets. Users will be able to deposit assets into a contract which then sells your deposits as call or put options to buyers at fixed strikes that they select for different expiries.
OLP is a configuration (A Secondary Option Market) built on top of our well-known SSOV product. As the name indicates, they are simply pools that allow the purchasing of SSOV option tokens at an implied volatility discount in exchange for providing anytime exit liquidity to option buyers. In simpler terms, it allows buyers of SSOV options to exit their position into option liquidity pools at any time in exchange for a discounted rate.
Straddles are a popular options strategy that allows traders to profit from significant price movements in an underlying asset. To execute a straddle, the trader simultaneously purchases both a call option and a put option for the same asset with the same strike price and expiration date, enabling the trader to benefit from any price movement (up or down).
Atlantic Perp Protection is a product that provides liquidation protection to leveraged traders on GMX. This product allows them to keep their trading position open even if the mark price of their target asset falls below their liquidation price, the point where a trader’s margin is zero and their position should be automatically closed.
Last modified 2mo ago