Atlantic options are a novel innovation introduced by Dopex, which aims to provide buyers a unique opportunity to borrow the underlying collateral within the option to use within existing DeFi primitives. This new configuration aims to provide a more efficient and compositional approach to option collateral management while ensuring safety and usability.
Unlike vanilla options, Atlantic options offer a fresh perspective on collateral composability, leveraging simple mechanisms to enhance collateral efficiency. These options enable users to:
- Protect their positions against liquidation in CDP and Perp protocols.
- Atlantic Straddles & Atlantic Spreads.
- Another practical use case for Atlantic options is leveraged bonding insurance.
- Positioning protocol-wide price floors via treasury.
- Setting up “buy the dip” strategies
- And much more.
Overall, Atlantic options offer a range of practical use cases in the DeFi ecosystem by introducing a more efficient and compositional approach to collateral management, they provide a new level of safety and usability to DeFi primitives.