Liquidity Mining (Calls as Incentives)

Dopex provides incentives for SSOV LPs (option writers) in the form of $DPX and other incentives provided by external protocols that wish to drive liquidity to their option market.
Dopex liquidity mining has two primary features:
  • Strike-based Incentives
  • Tokens and ITM Calls as Incentives

Strike-Based Incentives

SSOV incentives are strike-based, meaning that within a given SSOV, depositors will only share incentives with other depositors in their chosen strike. This ensures fair distribution of rewards for all strike prices, providing deep liquidity across all strikes for option purchasers.

Tokens and ITM Calls as Incentives

SSOV incentives are split 60:40 between standard tokens (e.g. $DPX) and ITM calls (e.g. 10% ITM $DPX weekly calls) at an SSOV level which is then distributed based on strike price as follows:
Deviation from Spot Price (SD)
Tokens (%)
Calls (%)
Calls as incentives provides Dopex flexibility on how rewards are distributed by changing reward parameters such as:
  • Total incentives provided
  • % ITM of call rewards
  • % distribution of tokens and calls per strike price
We currently distribute $DPX and $ARB incentives across our SSOVs. Please refer to the appropriate SSOV to view rewards for this epoch.

ITM Calls

$DPX and $ARB are deposited every epoch by the Dopex Treasury into the $DPX and $ARB SSOVs in the ITM strike price and repurchased. The repurchased calls are then distributed linearly to liquidity providers depending on the SSOV and strike price they are deposited in.
Liquidity providers can then make one of two choices:
  1. 1.
    Hold their ITM calls til expiration and earn settlement, if any
  2. 2.
    Exit their ITM calls mid-epoch against their respective OLP
OLPs will be bootstrapped every epoch to ensure there is sufficient liquidity for all reward recipients to exit their positions early if they wish to do so.