MATIC STRADDLES ARE HERE! ✨
We are extremely excited to unveil the launch of our cutting-edge Atlantic product for Polygon users - Matic Straddles! This distinctive and innovative design offers users a new and engaging way to speculate on Matic’s price volatility. By depositing USDC, users can now contribute to the Matic Straddle pool, providing ATM (At The Money) short put option liquidity or long volatility through the purchase of "Matic Straddles." This feature allows users to capitalize on market fluctuations and potentially earn profits. We believe this new addition to Polygon will provide immense value to users, bringing forward a new financial tool for distinct strategy composability, and we really look forward to seeing all of you take advantage of it.
How does it function?⚡
By providing liquidity to the Matic Straddle pool, users are effectively selling a Matic ATM Put. This means that they are giving the buyer of the put the right, but not the obligation, to sell a specific amount of Matic at a specific price (the ATM, or at-the-money price) at a specific date in the future. By doing so, users are able to earn a premium for the risk they are taking on.
On the other hand, by purchasing a "Matic Straddle," users are buying a Matic ATM Put and borrowing 50% of its collateral to swap it for Matic (the underlying) to form a synthetic call payoff. A 50% put + a 50% call creates a "Straddle" like strategy, where users are able to profit from both a rise and a fall in the price of Matic. This is a highly speculative and advanced trading strategy that can be used to generate profits in volatile markets.
In other words
- Deposits USDC in Matic Straddle vault.
- Deposited USDC is used to sell ATM (at-the-money) strike put options on Matic.
- At expiry (2 days) option is settled, and depositors can withdraw their asset +-PnL with their premiums and incentives.
- Purchases Matic Straddles by paying the premium with USDC.
- 50% of the USDC option collateral is converted into Matic to create a straddle payoff.
- At expiry (2 days) option is settled, and the buyer can collect profits from any price movement in Matic.
📃 Matic straddle vault details:
- Token Name: $Matic
- $Matic Token Contract: “0x0000000000000000000000000000000000001010”
- Oracle: Matic price feed from chainlink oracle
- Epoch Length: Every 2 Days at 8:00 AM UTC
- Deposit incentives: (add incentives)
- Links to Atlantic Straddle vaults:
- Matic Straddles: Straddle link
- Eth Straddles: (coming soon)
IN CONCLUSION ♨
Overall, the introduction of Matic Straddles on Polygon is a game-changer for users looking for new and innovative ways to trade and earn profits in the DeFi space. We look forward to seeing how our users utilize this feature and are excited to say that we have many future plans for Atlantic Straddles, including new vaults and other payoff strategies for the depositors to choose from.
Deposits for the first epoch, once open, last until the following day at 12PM UTC. There is no deposit limit. Once the epoch starts and deposits end, all further deposits are registered for the subsequent epoch. Epochs last two days, and proceeding the first epoch, deposits automatically roll over after the expiry of the prior one unless the User manually cancels it.
Be sure to read the walkthrough article to know how to cancel deposit rollover
If you are not yet familiar with Matic Straddles and are interested in learning more, we highly suggest the following articles:
For any other questions, you can always hop onto our Discord, and one of our team or community members will gladly help you out further: Discord.gg/dopex.
Dopex is a decentralized options protocol that aims to maximize liquidity, minimize losses for option writers and maximize gains for option buyers — all in a passive manner. Dopex uses option pools to allow anyone to earn a yield passively. Offering value to both option sellers and buyers by ensuring fair and optimized option prices across all strike prices and expiries. This is thanks to our own innovative and state-of-the-art option pricing model that replicates volatility smiles.
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