Read on Twitter
Huge Release for @AuctusProject today!
Private smart pools for options.
This all started with a heated twitter fight between @0mllwntrmt3 and I, on @mewn21's thread with @DegenSpartan in the backseat.
Time for a thread
https://twitter.com/AuctusProject/status/1361845430452158465
Private smart pools for options.
This all started with a heated twitter fight between @0mllwntrmt3 and I, on @mewn21's thread with @DegenSpartan in the backseat.
Time for a thread
https://twitter.com/AuctusProject/status/1361845430452158465
Find me an options pool, and I will find you LPs losing money.
In the summer of 2020 on the heels of the DeFi craze, a lot of devs woke up and said "why don't we copy the Uniswap AMM model and use it for options"
What sounded like a decent idea, turned out to be a horrible one.
In the summer of 2020 on the heels of the DeFi craze, a lot of devs woke up and said "why don't we copy the Uniswap AMM model and use it for options"
What sounded like a decent idea, turned out to be a horrible one.
If you think IL is bad, wait till you join an options pool where you sell low at the strike, and then are forced to buy back high, and do it all over again. And maybe today you write calls, or maybe you write puts. Who knows
Bottom line: option pool design has been a catastrophe
Bottom line: option pool design has been a catastrophe
And the solution to that Catastrophe?
Let's airdrop some inflationary tokens! That should slow the bleeding.
Imagine if Interactive Brokers paid you in IBKR shares for writing options because you were guaranteed to lose money... did everyone lose their minds?
Let's airdrop some inflationary tokens! That should slow the bleeding.
Imagine if Interactive Brokers paid you in IBKR shares for writing options because you were guaranteed to lose money... did everyone lose their minds?
Options and derivatives are the biggest financial market in the world. And if we want on-chain derivatives to match that in size, they cannot be depended on incentives, but have to be structured in a way that can be profitable for the writers themselves
I don't expect developers to create a money making pool for funds.
That was never their job.
Instead devs need to create flexible tools that enable funds, liquidity providers, and whales to do their job in a way that makes them money.
That was never their job.
Instead devs need to create flexible tools that enable funds, liquidity providers, and whales to do their job in a way that makes them money.
In January, I communicated this in a tweet to @0mllwntrmt3 where I said: "The dream version of a pool imo is where users specify a few strikes and expirations, and the pool adds liquidity to all, maximizing their writing" https://twitter.com/FelixOHartmann/status/1345684778981281793?s=20
He/She/It's response: 'u can make a list of 99 problems Hegic has but ur opinion means nothing until ur dReAm vErSioN can do this in mainnet'
Well the good news is @AuctusProject did just that and launched private smart pools on mainnet today just 30 days later!
Well the good news is @AuctusProject did just that and launched private smart pools on mainnet today just 30 days later!
As a @BalancerLabs super user, I genuinely think that smart pools are the way to go. My pools make me money and I couldn't care less about BAL rewards
Equally I had @AuctusProject design options private pools to give me the tools to make them intrinsically profitable without AUC
Equally I had @AuctusProject design options private pools to give me the tools to make them intrinsically profitable without AUC
Rewards should be nitro, steroids, call them what you want, but rewards cannot be a permanent life blood. Otherwise TVL is a house of cards, bound to collapse the moment bullish sentiment fades.
I push most of my projects to build to last because this is a long war.
I push most of my projects to build to last because this is a long war.
With @AuctusProject Private Pools, option LPs can now set and change their:
- IV
- Expirations
- Strikes
- Re-collateralize when strategic
The 'dReAm vErSioN' that Molly made sound impossible is literally live now on a project with 1% the market cap of Hegic.
- IV
- Expirations
- Strikes
- Re-collateralize when strategic
The 'dReAm vErSioN' that Molly made sound impossible is literally live now on a project with 1% the market cap of Hegic.
I personally just added $200,000 to my @AuctusProject Private Pool and will be testing it. Feel free to buy ETH options from the platform there's a good amount of liquidity now for retail
The team is now in the process of bringing on options market makers and crypto funds
The team is now in the process of bringing on options market makers and crypto funds
I continue to be a big bull on Auctus. The team is vastly underpriced with the kind of products they're launching. At the end of the day good product will blow any kind of token rewards out of the water long term.
All it takes is a product market fit, and TVL will scale fast
All it takes is a product market fit, and TVL will scale fast
If you're a whale or fund, let me help you get a pool up and running, because let me tell you, the premiums on crypto in a bull market are absolutely insane, and on-chain can charge a premium on top since options are not accessible in many countries.
Excited for Auctus to transition into UI/UX and scale mode now that most key products are launched and start dominating.
For the full write up, check it out here: https://blog.auctus.org/launch-of-auctus-private-option-pools-aka-dream-version-live-on-mainnet-e2273f5958b6
For the full write up, check it out here: https://blog.auctus.org/launch-of-auctus-private-option-pools-aka-dream-version-live-on-mainnet-e2273f5958b6
