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: 61.47%(+0.33%/24h)
ETH Dominance: 11.43%(-0.19%/24h)
Defi Market Cap: $126.26B(-14.33%/24h)
Total Market Cap: $3658.61B(-2.21%/24h)
Total Trading Volume 24h: $149.01B(-27.19%/24h)
ETH Market Cap: $419.63B
Defi to ETH Ratio: 30.09%
Defi Dominance: 3.38%
Altcoin Market Cap: $1409.8B
Altcoin Volume 24h: $86.24B
Total Cryptocurrencies: 35496
Active Cryptocurrencies: 9479
Active Market Pairs: 106645
Active Exchanges: 836
Total Exchanges: 10801
BTC: 113010.18$(-0.07%/1H)
ETH: 3469.82$(-0.13%/1H)
AVAX: 21.27$(-0.53%/1H)
BNB: 745.76$(-0.54%/1H)
MATIC: 0$(0.95%/1H)
FTM: 0$(-0.27%/1H)
ADA: 0.7$(-0.58%/1H)
DOT: 3.51$(-0.27%/1H)
UNI: 8.96$(0.07%/1H)
CAKE: 2.55$(-0.34%/1H)
SUSHI: 0.74$(-0.41%/1H)
ONE: 0.01$(0.55%/1H)