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Options Traders

Options Traders can leverage Panoptic's full-featured platform. Users can buy and sell capital-efficient, multi-legged options strategies on any token at any strike price.

Full Flexibility
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Panoptic offers the full flexibility that options traders are familiar with, without sacrificing liquidity. Here is how Panoptic avoids restrictions pervasive in DeFi options:

  • Ability to support large sizes: Panoptic enables unlimited selling of options. When there are no buyers, sellers are still compensated through Uniswap trading fees. Perpetual options remove expiries to consolidate liquidity. Panoptic renders OTC options on longtail assets obsolete since Panoptic is oracle-free and enables immediate listing of any ERC-20 token pair.

  • Keeping variety without losing liquidity: Traders can sell options at any strike price without limitation. Traders can choose whether to buy or sell options, which strike to underwrite, what type of option to trade (put, call, or any multi-leg combination), with full capital efficiency.

  • Liquidity providers (LPs) can define their risk exposure: Liquidity provision in Panoptic (PLP) is separate from options selling. Users can choose between passive provision (no delta risk) and active option selling (has delta risk). Options sellers will be equipped with risk management tools on Panoptic such as P&L visualization, liquidation prices, and Greeks calculations.

  • A balanced, two-sided market: Panoptic enables a two-sided market where traders can buy or sell perpetual options (i.e. go short or long LP tokens). This enables better price discovery for the LP market to come to equilibrium regarding its implied volatility (IV), pricing, and size.

  • Capital can be withdrawn: Panoptic implements dynamic collateral requirements, dynamic spreads, and forced exercising in order to discourage over-utilization of liquidity.

Capital-Efficient
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Options in Panoptic are optimized for capital-efficiency. Traders can buy options with up to 10x leverage, and sell options with up to 5x leverage. More advanced strategies like straddles, strangles, and spreads can also be traded on leverage, allowing for lower upfront capital commitment and higher potential gains (and losses).

Multi-legged
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Traders can combine multiple puts and calls ("legs") at various strike prices and timescale to create more advanced strategies. Traditional multi-leg strategies such as straddles, strangles, spreads, iron condors, and jade lizards can all be used in Panoptic.

Any Token
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Users can trade perpetual options on any ERC-20 token, thanks to the permissionless nature of Panoptic and Uniswap.

Any Strike
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Traders can sell perpetual options at any strike price, thanks to the permissionless nature of Panoptic and Uniswap. Traders can buy perpetual options at any strike price so long as there is sufficient liquidity sold at the desired strike.

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