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Option Writer Rebate System

Option writers on the Dopex platform are partially compensated for their losses with $rDPX. Rather than receiving standard ERC-20 $rDPX, losers receive Decaying Bondable $rDPX ("dbrDPX"), an ERC-721 token.

Rebate System

When option positions expires ITM, option writers pay option buyers the difference between strike and settlement prices thus incurring a loss. Writers are compensated a portion of their losses in the form of dbrDPX. This make losses on Dopex less expensive than our competitors, creating a liquidity moat.
Rebates will be given as a variable percentage of writer losses within a predefined cap. Rebate percentages may be adjusted by veDPX holders via governance.

dbrDPX

dbrDPX is assigned an $rDPX value based on losses incurred from an option position and the rebate percentage. Its only utility is to be substitued for the $rDPX component during bonding, allowing holders to provide only the 75% $ETH component to mint $dpxETH.
dbrDPX has a fixed expiry date. Failure to bond before expiration will result in dbrDPX expiring worthless.