DeFi Options Trading Is Powerful!

There can be unlimited upside…😈

But also unlimited downside 😣

Every trader should know how to create these 18 options strategies in Panoptic for any crypto asset, any strike, any size👇

Why are some pools good 🐶 and other pools bad 😈?

The answer comes from breaking down LP profits into:

• Price changes 📈
• Fees collected 🎟️

By comparing LPs to options, we discover parallel insights — let's explore!

We simulated LP performance for 21 popular Uni V3 pools (high TVL & volume). Results were surprising: LPs can be profitable! 📢

• 💰 Which pools made the most?
• 📏 Are narrow or wide ranges better?

Find out 👇

We analyzed simulated LP performance on ETH-USDC 0.3% pool. Results were surprising: the optimal width was wider than expected! 📢

• What's the optimal width for max returns?
• How does that change for 🐂 vs 🐻 markets?

Find out 👇

How to hedge ANYTHING (including UniV3 LP positions) with options 👇

Why options?

• Flexibility: Construct any payoff curve
• Greater protection: hedge against price going up AND down
• Capital efficiency: Low upfront cost for OTM puts/calls

Let's construct a hedge!

How do you LP on Uni v3 with a ±% range? E.g. if you wanted ±30% should you do:

• $\text{Lower: } P \cdot 70\%$
• $\text{Upper: } P \cdot 130\%$

or

• $\text{Lower: } \frac{P}{1.3}$
• $\text{Upper: } P \cdot 1.3$

Let's find out! 👇

One of the core assumptions behind financial models is that prices follow a geometric brownian motion (GBM) — e.g. Black-Scholes. Does the price of the most traded asset in Uniswap v3 also follow a GBM? Let's find out! 👇

If you’re looking to dive deeper into the technical side of things, our research section is the place to explore. Here you’ll find educational resources on options strategies and free research on “all things DeFi options” for the community to participate in developing our platform.

Over the next few months, leading up to our 2023 Q3 Test Phase launch, we will concentrate our research efforts on Panoptic’s innovative perpetual options product, detailing its pricing mechanism, capital efficiency, associated risks, and trading strategies.

We’re committed to being transparent and collaborative, and our open-source code and Jupyter Notebooks on GitHub are just one way we’re working to achieve that.