Option as Swap AMM
Option as Swap AMM
Potenial future of swap model?
Explore @DysonFinance
Dual Investment as Liquidity Providing
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TLDR Dyson Finance
How does the LP work
Why trade or LP there?
Why is lambro looking at it
🔹 TLDR Dyson Finance
Dyson Finance is a DEX has a AMM model like dual investment.
With the dual investment AMM model it provides Liquidity providers a predictable LP risk & return & better price to traders to swap
So what is Dual investment ?
There are 3 core elements in dual investment
Strike Price
Maturity Date
Premium
Sounds complicated but it's just
If
Price is > [ Strike Price ] on [ Maturity Date ]
u get
USDC [ the position u enter sold at strike price ] + Premium
If
Price is < [ Strike Price ] on [ Maturity Date ]
u get
ETH ( position u deposited ) + Premium
Let's look into an example for easy understanding
When u deposit your eth ( 0.001 eth )
if it hits above the strike price by maturity date ( strike price 1972 at maturity date 3 days)
u will receive 2.0004usdc ( u basically sold your eth at the strike price + extra yield )
if it is below the strike price by maturiy date ( strike price 1972 at maturity date 3 days)
u will receive 0.00101432 eth ( basically ur eth + extra yield )
🔹 Why trade or LP there?
Trader
It is the liquidity providing is on current price, assuming the market is always efficient with arbitrager.
swaps will always be routed directly or indirectly toward dyson finance.
Liquidity providers can have a clear target price & expected yield on single price insteade of a position with a mix of two tokens depending on the price and unpredictable yield from potential swap fees
🔹 Why is lambro looking at it
Do u prefer looking at forks where NO innovation was introduce?
I think there are a lot of improvements can be done on the design of LP and introducing options concept into LP is the right direction
Imagine if u are a bank sale, how diffcult is it to to sale "uniswap v2 LP" as a product? ur PnL depends on something call IL and it changes ur delta roi etc.
Where if u are selling an option like LP, above this price u get this + yield, below it u get this + yield.
simple job?
If u want to stay ahead of defi or enjoy the next defi wave, constantly learning is improtant.
Aping low valuation forks can be profitable short term, but imagine if u only stuck with uniswap forks, gamefi etc n missed perp dex & yield markets like pendle last year?
Dyson is active building pushing hard.
they just launched their first version on polygon zkEVM
u can check out more.
Feel free to use my sign up code here
The referral mechanism is limited to three invite codes per person
first come first serve
They are currently running their season 2 of engagment score.
something u might worth looking in to.
it's always good to early 👀
Come join me to get more insight!