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Panoptic Insights: February Newsletter

Welcome Panoptimists to the February edition of the Panoptic Newsletter, where we provide industry insights, research recaps, and Panoptic-specific content to keep you updated on our DeFi-native options platform.

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About Panoptic
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Discover the future of trading with Panoptic, your gateway to perpetual options in DeFi. Our cutting-edge platform empowers you to manage risk effectively and trade with unprecedented flexibility. Join us and be part of a secure, decentralized revolution in options trading, tailored for both crypto newcomers and experienced traders.

Panoptic Highlights
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Panoptic hits a major milestone, reaching over $2 million in notional volume and over $1 million in total value locked (TVL). We’re thrilled to see the organic growth of DeFi options on our platform.

Over 50 options markets have been launched on Panoptic, including MORPHO, ENA, LDO, SOL, AXS, UNI, SHIB, ENS, APE, and tBTC. Market creators receive a special onchain vector graphic NFT to commemorate their contribution.

This trader sold naked calls on ETH at the $3,280 strike—an unhedged short call position covering approximately 20.27 WETH (notional value of about $66.5K). By selling during a market sell-off, when tariff concerns drove volatility higher, they collected a larger-than-normal streamia of about $3,402.

Because implied volatility was elevated, the option contracts were priced richly, and the trader effectively capitalized on the heightened fear in the market.

They skillfully closed the calls before ETH bounced, locking in a total profit of approximately $6,379 (nearly 9.59% of notional) while still near-the-money. The margin requirement was around $14,431, and by exiting early, they sidestepped the risk of a surge above $3,280 that could have eroded or wiped out their gains. As a result, the trader earned a significant amount of streamia and navigated the position intelligently, profiting from time decay and implied volatility convergence without facing a large adverse price move.

Panoptic’s Ethereum Debut: Ushering in a New Era for DeFi Options
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On December 18, 2024, Panoptic officially launched on Ethereum, introducing perpetual options as a groundbreaking DeFi derivative. By leveraging Uniswap’s automated market maker (AMM) model, Panoptic eliminates impermanent loss for passive LPs while providing higher earnings and better risk management for active LPs. Fully onchain and permissionless, Panoptic’s integration marks a significant milestone for DeFi, reshaping how traders and LPs participate in on-chain markets.

As Guillaume Lambert, Panoptic’s founder, remarked, this innovation parallels the impact of perpetual futures, positioning Panoptic as “the Uniswap of options.” Supported by Uniswap Labs Ventures, Coinbase Ventures, and other industry leaders, Panoptic enables seamless options creation on any digital asset in Uniswap’s ecosystem. This launch marks a pivotal step in reshaping DeFi, offering traders and LPs unprecedented tools to maximize profitability while mitigating risk.

Breaking the Uniswap Doom Loop: How Panoptic Empowers Market Stability
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The Uniswap price doom loop presents a systemic challenge for LPs, exacerbating downward price spirals due to the inherent rebalancing mechanics of automated market makers (AMMs). When prices stray out of range, LPs must rebalance by selling tokens, triggering negative feedback cycles that amplify price declines. This issue is further intensified if LPs hedge their positions, creating additional sell pressure akin to a perpetual short put option dynamic.

Panoptic directly addresses this imbalance by introducing a complete derivatives ecosystem to Uniswap. By enabling the shorting of LP tokens and other advanced strategies, Panoptic allows traders to offset doom loop risks, providing balance and mitigating volatility. Derivatives like Panoptic’s perpetual options have historically demonstrated their ability to stabilize spot markets, as evidenced in traditional markets where futures and options trading reduced price volatility and enhanced liquidity. For the first time, Uniswap LPs gain access to tools that not only protect but also potentially profit from turbulent market conditions, transforming the doom loop into a “boom loop.”

Panoptic in the Media
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Spotlights
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Start Earning Pips in DeFi's Top Markets!
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Unlock rewards with Panoptic Incentive Points (Pips). Eligible Panoptic markets on Uniswap v3 include WETH/USDC (30bps) and WETH/WBTC (30bps), with additional Panoptic markets on Uniswap v4 to follow. Earn Pips by depositing assets or trading options. Whether you're passive LPing or accumulating streamia through options trading, every action contributes to building your rewards within the Panoptic ecosystem.

Guillaume Lambert Walks Through Panoptic's First Liquidation Event
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Panoptic reached a milestone with its first liquidation, signaling the strength of its DeFi options mechanics. Our founder, Guillaume Lambert, explained the details: the liquidated account leveraged ETH calls but fell below the collateral requirement due to adverse price movements. This case also introduced a fascinating "negative bonus," where the liquidator provided USDC to receive a net-positive bonus in WETH.

Options Hour Recap: A Masterclass in DeFi Options
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Options Hour is a recurring series where the Panoptic team explores DeFi options strategies, market trends, and predictions for the coming year. Each episode is streamed live on X and YouTube each week. Check out our YouTube channel to watch previous sessions and expand your trading knowledge.

Ethereum Builders & Ethereum Foundation Researchers Unite in X Space
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We recently took part in an X Space where Ethereum app builders and Ethereum Foundation (EF) researchers connected to discuss ongoing projects and innovations. Attendees learned about why these new developments matter and had the chance to ask questions and share feedback. Catch the replay below.

Why Options Are Great! Markets with IVX and Panoptic
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Dive into an insightful discussion on DeFi options with the IVX and Panoptic teams. Discover why options matter, how they fit into decentralized markets, and gain valuable strategies to enhance your trading approach. Don’t miss this opportunity for top-tier insights and practical tips from experienced builders and market experts!

Up Next
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Panoptic’s contracts are live on Uniswap v4! We’re gearing up for our interface support of Uniswap v4 pools, introducing the gRHO interface for passive LPs, and preparing for upcoming launches on Layer 2 networks.

Heading to ETH Denver? So are we! Come find Panoptic at the Unichain booth and don’t miss our side event, Panopticon—stay tuned for more details!

Join the growing community of Panoptimists and be the first to hear our latest updates by following us on our social media platforms. To learn more about Panoptic and all things DeFi options, check out our docs and head to our website.

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