Sigma
Hooks-based options & Liquidity-as-a-service
Created on 30th June 2024
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Sigma
Hooks-based options & Liquidity-as-a-service
The problem Sigma solves
Hook-based options: options liquidity fragmentation and UX (high cost and hard to understand).
Synthetic options are achieved by providing liquidity and dynamically adjusting our positions.
Call option:
- 50% of the capital to the ETH-USDC pool (upside only)
- 50% as collateral on Morpho to gradually borrow more USDC to buy more long power perps (oSQTH) as ETH price continues to grow
Put option:
- 50% of the capital to the ETH-USDC pool (downside only)
- 50% as collateral on Morpho to gradually borrow more ETH to buy more short power perps (oSQTH) as ETH price continues to fall.
Liquidity-as-a-service - the combination of call and put options within the lending/borrowing market on Morpho to bootstrap liquidity for brand-new ERC-20 tokens.
Challenges I ran into
Integration of Uniswap V4 and Morpho as Uniswap V4 doesn't have much technical documentation/examples and is still under development.
Tracks Applied (1)
Trading Track
TRADING with Aerodrome and Synthetix
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Discussion
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