Join our community of Panoptimists who value innovative advancements in blockchain, Decentralized Finance (DeFi), and financial instruments. Learn more about our breakthroughs in reducing liquidity fragmentation, increasing trade flexibility, and making options accessible to everyone by reading our docs.
Reducing Liquidity Fragmentation
The primary challenge lies in crypto options markets requiring separate liquidity for each product — resulting in capital inefficient fragmentation of liquidity. This leads to liquidity being scattered across thousands of distinct assets, varying expiry dates, and a multitude of strike prices. Furthermore, the inherent limitations of blockchain present significant challenges, notably failing to scale to accommodate the low latency order books and sophisticated market making required for a mature options market.
Panoptic re-imagines options to work on-chain: options have no expiry and require no oracles, intermediaries, counterparties, or order books. The result is a permissionless, governance-minimized protocol with no liquidity fragmentation.
Options are perpetual – they don't expire. Panoptic consolidates liquidity into a single, expirationless product to avoid liquidity fragmentation across different expiry dates common in TradFi.
Designed with capital efficiency in mind, Panoptic supports undercollateralized positions. This allows traders to use less capital, gain access to higher leverage, and construct efficient, multi-legged trades.
Panoptic introduces a two-sided market for liquidity provider (LP) positions in Uniswap. By allowing sellers to deposit liquidity into Uniswap when implied volatility (IV) is high and buyers to remove liquidity from Uniswap when IV is low, Panoptic fosters a dynamic marketplace that enhances price discovery and efficiency of liquidity.
Even in scenarios where there is a lack of options buyers, options sellers can still reap the benefits of short option payoffs by receiving 'streamia' — or streaming premia — from spot trading activity on the underlying automated market maker (AMM). The presence of more options buyers generates additional streamia, augmenting the potential earnings of options sellers.
In Panoptic, options pricing is simple and fair. Panoptic’s streamia is based on real trading activity in the underlying AMM, eliminating the need for manipulable external oracles or computationally expensive pricing.
Increasing Trade Flexibility
Panoptic stands out from other crypto options protocols by providing complete flexibility to traders. They can freely buy, sell, and close multi-legged options at any strike price at any time. This flexibility caters to traders' expectations and will attract more options traders and liquidity to the platform.
Panoptic removes barriers to entry by permitting traders to buy and sell options of any size, making options trading more accessible to a wider range of participants.
Making Options Accessible
Listing new options on Panoptic is fully permissionless. Anyone can generate an options pool for any ERC20 tokens, including long-tail assets that are traditionally absent on options exchanges.
Liquidity provision on Panoptic is fully permissionless. Any user can provide any quantity of any token, and traders can borrow fungible liquidity for undercollateralized options trading.
Trading on Panoptic is fully permissionless. Any user can buy and sell options at any strike on any asset with leverage.