DefiDollar x Opyn Partnership

Published on: 30.05.2021
DefiDollar x Opyn Partnership

DefiDollar is BUIDLing on top of Opyn to improve capital efficiency of on-chain debt.

Opeth Use Cases:

🔹Leveraged ETH Upside + Yield Farming

🔹Reduce Downside Protection Cost

🔹How Does Opeth Work?

  • The trader identifies available ETH puts on Opyn with a strike price of $800
  • The trader deposits 1ETH in the Opeth minting portal and pays the options premium to purchase the $800 strike put option
  • The trader can then borrow up to $800 of stablecoins from any protocol accepting the Opeth as collateral, valid until the option’s expiry.

🔹What Happens at Expiry?

  • If at expiry ETH remains above $800, the user returns $800, takes their ETH back, due to the option expiring worthless (out of the money)
  • Option Expires In The Money
  • If at expiry the ETH price drops below the strike price ($800), then the put option is exercised to sell the underlying ETH for $800.
  • The protocol using Opeth as collateral will issue < $800 to keep a reasonable buffer

🔹Opeth Advantages

  • Opeth opens up the market for broader collateral inclusion. Given physically-settled DeFi options settlement is guaranteed on-chain, even relatively illiquid assets can be used as collateral.
  • Flexible use cases for traders using DeFi options as party of their investment strategy

What is DeFiDollar?

DeFiDollar is one project improving capital efficiency of on-chain debt. Opeth is a synthetic instrument that combines put options and the underlying asset. This combo, put option + underlying asset, has a lower bound and can be used as collateral to issue stablecoins.

What is Opyn?

Opyn is building DeFi protection and risk management using options.

📰 INFO:

https://medium.com/opyn/buidling-with-opyn-defidollars-opeth-powering-stablecoin-loans-fbb6c7b20af8

Market Stats:
BTC Dominance: 57.61%(-0.04%/24h)
ETH Dominance: 14.45%(+0.19%/24h)
Defi Market Cap: $162.52B(-27.66%/24h)
Total Market Cap: $3969.26B(-0.53%/24h)
Total Trading Volume 24h: $132.22B(-49.29%/24h)
ETH Market Cap: $573.03B
Defi to ETH Ratio: 28.36%
Defi Dominance: 4.02%
Altcoin Market Cap: $1682.43B
Altcoin Volume 24h: $79.95B
Total Cryptocurrencies: 35839
Active Cryptocurrencies: 9534
Active Market Pairs: 107696
Active Exchanges: 842
Total Exchanges: 10905
BTC: 114848.93$(-0.07%/1H)
ETH: 4752.51$(-0.62%/1H)
AVAX: 25.05$(-1.81%/1H)
BNB: 862.9$(-0.76%/1H)
MATIC: 0$(0.95%/1H)
FTM: 0$(-0.27%/1H)
ADA: 0.89$(-1.05%/1H)
DOT: 4.05$(-1.01%/1H)
UNI: 10.94$(-1.48%/1H)
CAKE: 2.68$(-0.88%/1H)
SUSHI: 0.83$(-1.69%/1H)
ONE: 0.01$(-1.91%/1H)