🎈INTRODUCING STETH CALLS SSOV TO DOPEX
Dopex is pleased to reveal that we have partnered with Lido to create Staked $ETH (stETH) Call SSOVs, our latest options vault that will use Lido's stETH derivative as its underlying asset.
Liquidity providers will be able to write call options using wrapped stETH (wstETH) as collateral, allowing them to continue earning staking returns in the form of indexed stETH rebases. This will allow option buyers to purchase call options on the price of stETH. The vault will use Chainlink price feeds for both wstETH and stETH and be deployed on the Arbitrum L2 Rollup Chain (our native chain).
ℹ️ The vault will work as follows:
- Liquidity Providers will be able to deposit wstETH in the vault as Call Option collateral allowing them to earn stETH rebases in the form of increased wstETH:stETH index
- Deposited wstETH will be used to sell call options at fixed strikes that are pre-selected for end-of-week/month expiries to earn a premium in addition to their staking yield
- Liquidity providers for both weekly and monthly vaults will receive $LIDO emissions and will accrue throughout the epoch until the expiry of the vault
- Options buyers will be able to purchase options on the price of stETH from liquidity providers
Rewards for the vault will be composed of (Subject to change):
- January: Weekly SSOVs - 6,000 $LDO per week
- February onwards: Weekly SSOVs - 2,250 $LIDO per week; Monthly SSOVs - 9,000 $LDO per month
⏰ Deposit NOW
The stETH SSOV first epoch begins now! With anytime deposits, anytime option purchases, and incredible rewards for depositors! We highly suggest Users read and understand the risks involved in using Staked Assets and SSOVs.
For more information about Liquid Staked Assets, keep your eyes peeled for the CEO's article to be released tomorrow.
What is an SSOV?
Similar to single staking vaults, SSOV allows users to lock up tokens for a specified period of time and earn yield on their staked assets. Users will be able to deposit assets into a contract which then sells your deposits as call options to buyers at fixed strikes that they select for end-of-month expiries. SSOV options are either at the money, out of the money, or far out of the money.
If you are not familiar with SSOV concepts, read these articles first:
📕 https://blog.dopex.io/articles/ssov/dopex-ssov-strategies📗 https://blog.dopex.io/articles/ssov/dopex-single-staking-option-vaults-ssov
What is Lido?
Lido is a liquid staking solution for PoS networks. Lido lets users stake any amount of tokens for daily staking rewards without the restrictions imposed by native staking.
Lido is a liquid staking protocol backed by industry-leading staking providers while it currently supports staking for Ethereum, Polygon, Solana, Polkadot, and Kusama. Lido lets users stake their tokens - without locking assets or maintaining infrastructure - whilst participating in on-chain activities, e.g., lending, farming, and more. Lido’s on a mission to make staking simple and decentralized, whilst opening up staking to as many people as possible.
📕 ”Link to Lido x Dopex article coming soon”📗 https://blog.lido.fi/introducing-lido/
Users can purchase $wstETH on multiple AMMs including Curve and Balancer. *Note: Keep an eye on the list of AMM integration on Arbitrum L2 using this link: *https://help.lido.fi/en/collections/3641672-lido-on-layer-2-l2
📃stETH SSOV Details:
- Token Name: $wstETH
- $wstETH Token Contract: “0x5979D7b546E38E414F7E9822514be443A4800529”
- NOTE: Whilst the deposit collateral is wstETH, settlement is calculated against stETH's price feed provided by Chainlink
- Epoch Length: Weekly (Starting Immediately), Monthly (Starting February 2023)
- Link to stETH SSOVs:
- stETH Weekly Call SSOV: https://app.dopex.io/ssov/stETH-WEEKLY-CALLS-SSOV-V3
- stETH Monthly Call SSOV: (coming in February)
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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