Beta Launch: Epoch 4
Next Wednesday, January 10, Panoptic is rolling out Epoch 4 with some changes that will spice up our trading competition. Most notably, we're launching on a new chain, expanding the available markets to trade on, and giving out more prizes.
In the past we've limited our Epochs to a select list of individuals, but this time we're expanding access: anyone will be able to join the trading competition. Additionally, the first 100 depositors will be eligible to claim the Epoch 4 POAP.
About Our Beta Launch
Panoptic's beta launch is structured as multiple rounds of trading competitions called epochs. In the epochs, participants use real, albeit capped, assets to buy and sell perpetual options.
In each round of the trading competition, top performers receive prizes. Throughout the beta launch, we’re offering exclusive NFTs and up to $100,000 in monetary prizes.
Epoch 4 Overview
For the fourth epoch, we're moving to a new chain and bringing new options markets to the competition.
Panoptic's AvaLAUNCH
Epoch 4 sees Panoptic's beta options protocol launch on Avalanche, a decentralized and open-source proof of stake blockchain.
New Markets
Epoch 4 introduces new options markets to DeFi. Participants now have the opportunity to trade perpetual options in two new markets:
- Avax options
- Joe options
Each market offers rewards for top traders, with a total prize pool of $1,000.
In addition to the monetary prizes, exclusive NFTs will be awarded to the top five traders of each market.
Participation
Whitelist: No whitelist, anyone can participate
Eligibility: Verification via X (formerly Twitter)
Timeline
Start Date: January 10, 17:00 UTC
End Date: January 24, 17:00 UTC
Prizes
The top qualifying traders of each market will receive:
WAVAX-USDC 0.05%:
1st Place: $400 USDC
2nd Place: $175 USDC
3rd Place: $100 USDC
JOE-WAVAX 0.3%:
1st Place: $200 USDC
2nd Place: $75 USDC
3rd Place: $50 USDC
For Epoch 4, the first 100 participants will receive an Epoch 4 POAP that is custom designed by the Panoptic team. The top five traders of each market will be eligible for a Top Trader POAP.
The ranking metrics are based on profit and loss (PnL) calculated in terms of the account's value at the end of the epoch.
Technical Details
Chain: Avalanche C-Chain
Pool 1: WAVAX-USDC, 0.05%
Deposit Amount: 25 USDC and ~0.75 WAVAX.
Pool 2: JOE-WAVAX, 0.3%
Deposit Amount: ~0.75 WAVAX and ~45 JOE
The deposit limit for each user will be ~$50 per pool. Please note that you must deposit the required amount to participate, and that the exact amount can be found on the onboarding modal of the app once the competition starts.
Feedback
Feedback is an essential part of our beta launch. If you encounter any bugs or have ideas on how to improve our platform, submit them here.
Seeking Uniswap LPs, Market Makers, and Traders
Are you an LP on Uniswap/Trader Joe, market maker, or experienced trader? If so, you might qualify for VIP access to our beta platform for trading DeFi options.
To apply, fill out our form here.
How to Participate in Epoch 4
Here are the steps you need to take to join the competition:
Navigate to the beta version of the Panoptic app
Connect your wallet to Avalanche. If you’re unfamiliar with how to do this, follow the instructions here.
You may participate in any of the available options markets. To begin trading, follow these steps:
Deposit required funds on Panoptic by following the onboarding instructions on the Panoptic app.
To participate in any pool, you will need a small amount of AVAX in your wallet to pay for gas. You will also need the required deposit amounts of both tokens comprising the Panoptic pool you are interested in participating in. Please see the Technical Details section above for more information on the deposit amounts.
Obtain AVAX on Avalanche: Send funds directly from an exchange or bridge your funds from another chain.
Obtaining other tokens on Avalanche: Swap your funds on Avalanche for WAVAX, USDC, or Joe via the Uniswap or Trader Joe interface.
Buy or sell options between January 10 (17:00 UTC) and January 24 (17:00 UTC). Check out our leaderboard to see where you stand in comparison to other traders.
Winners will have their prizes distributed at the end of the competition period.
Learn how to deposit liquidity, trade an option, and more through our YouTube videos:
Additional Information
In preparation for the trading competition, traders can familiarize themselves with the protocol and associated fees by reading through our documentation.
As part of our multi-epoch beta launch, we will be testing various combinations of these pool parameter values to assess their safety, robustness, and fairness for a variety of tokens and market conditions.
We outline the pool parameter values for Epoch 4 below. For further explanation of how these parameters affect users in Panoptic, please see our pool parameters guide.
Fees
| Fees | Value | Example |
|---|---|---|
| Commission fee | 10 bps (0.10%) | Buying/selling a 1 ETH put will incur a 0.001 ETH commission fee |
| Forced exercise cost | As high as 5.12% | Forcing an option buyer to close an at-the-money 1 ETH put will incur a 0.0512 ETH fee on the force exercisor. Deeper in-the-money and out-of-the-money options will incur lower fees. |
| In-the-money (ITM) spread fee | 20 bps (0.20%) | Buying/selling an ITM 1 ETH put at a 2000 strike price with current ETH price being 1900 USDbC (intrinsic value of put option = 100 USDbC) incurs a 0.20 USDbC fee. Buying/selling an at-the-money or out-of-the-money option will not incur any ITM spread fee. |
| Vegoid | 1x - 3.25x spread (1.25x spread at 50% liquidity utilization) | Buyers pay sellers anywhere from 1x to 3.25x the amount of Uniswap LP fees, depending on the available liquidity of the option. Examples: 1) If a sold option is not purchased, it will earn the Uniswap LP fees (1x spread). 2) If half of the sold options are purchased, buyers pay sellers an additional 25% of Uniswap LP fees (1.25x spread). 3) If 90% of the sold option has been purchased, buyers pay sellers an additional 225% of Uniswap LP fees (3.25x spread). |
Collateral Requirements
| Pool Parameter | Value | Example |
|---|---|---|
| Sell Collateral Ratio | 20% (5x leverage) | Maintaining a 1 ETH short put position would require at least 0.2 ETH in collateral. |
| Buy Collateral Ratio | 10% (10x leverage) | Maintaining a 1 ETH long put position would require at least 0.1 ETH in collateral. |
| Mint Buffer Requirement | 1.1x | Suppose the buy collateral ratio is 10%. Buying a 1 ETH put would require at least 0.11 ETH in collateral (0.11 = 1.1 x 10%). |
Pool Utilization (PU)
| Pool Parameter | Value | Example |
|---|---|---|
| Target Pool Utilization | 50% | Half of all the Panoptic pool liquidity has been used to sell options. The protocol uses collateral requirement incentives to target this amount. |
| Saturated Pool Utilization | 75% | Three-quarters of all the Panoptic pool liquidity has been used to sell options. The protocol uses collateral requirement incentives to avoid exceeding this amount. |
Disclaimer
During Panoptic’s beta launch, the protocol is still in an experimental state, and trading activities involve inherent risks. Engaging in the competition may lead to a loss of funds due to the inherent nature of trading assets and the experimental nature of the protocol. Participants are encouraged to exercise caution and conduct their due diligence before making any financial decisions.
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.