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Option Liquidity Pool
In the following walkthrough, we will be using the $DPX weekly SSOV as an example.
It should look something like this:
- 2.Enter the OLP you would like to provide liquidity for or sell options into
The OLP interface will have a market for every SSOV which is separated into expirations (weekly and monthly) and underlying (e.g. $DPX, $ARB, etc.)
Find the OLP that is relevant to you and click the ‘view’ button (you can use the tabs to change the categories of OLPs shown or use the arrows to browse manually).
Congratulations, you have successfully navigated to your OLP!
- 3.Connect your wallet
The top right hand side of the page has a "Connect Wallet" button.
Click "Connect Wallet" and follow the prompts according to what wallet provider you use.
If you are connected to the wrong chain for your chosen OLP, you will be prompted to change to the correct chain.
Ground-breaking! You are now ready to provide liquidity for or sell options into an OLP.
- 1.Select ‘Call’ or ‘Put’
Select ‘Call’ or ‘Put’ depending on whether you would like to provide liquidity to purchase calls or puts from option holders.
Click the options under ‘Side’ to select the type of option you would like to purchase.
- 2.Select your strike price
Click the price under ‘Strike’ to open the Strike Price dropdown menu.
Select the strike price you would like to provide liquidity for.
- 3.Select your IV discount rate
In the ‘Discount’ box, enter the IV discount you would like applied to your liquidity.
This is the IV discount you will receive if option holders choose to sell options against your deposited liquidity.
- 4.Select your deposit token.
You can choose to provide liquidity in $USDC or the underlying SSOV’s base asset. For the $DPX SSOV, you can provide liquidity in either $USDC or $DPX.
Click the token in the top left corner to open the dropdown menu.
Select the token you would like to provide liquidity with.
- 5.Enter the amount of liquidity you would like to provide
Finally, enter the amount of liquidity you would like to provide.
If you are happy with this, click the ‘Provide LP’ button and sign the following transactions (you may need to approve transactions first).
Congratulations, you are now providing liquidity for OLPs!.
- 6.View your position
Once you have successfully deposited liquidity into the OLP, you position is visible under the ‘User LP Positions’.
This will outline important details, including liquidity deposited, utilization, discount rate, and tokens purchased.
If you would like to withdraw your liquidity at any time, simply press the ‘kill’ button and follow the prompts.
In order to sell options mid-epoch, you must already own options purchased from Dopex SSOVs or earned via our Calls as Incentives program.
- 1.View the OLP liquidity available to sell your options
At the bottom of the OLP page, you will see the OLP liquidity available to sell your options against.
Note the amount of liquidity available, liquidity token, and discount rate applied on sale.
- 2.Click ‘Fill’
Click ‘Fill’ on the OLP liquidity you are happy to sell your options against, which will open the fill box for your chosen OLP liquidity.
Note the premium per token you will receive and the liquidity available.
- 3.Enter the amount of options you would like to sell and click ‘Fill’.
Enter the amount of options you would like to sell.
If you are happy with the amount you will receive, click the ‘Fill’ button and follow the prompts.
Congratulations, you have successfully exited your option position mid-epoch using OLPs!