Options trading is an inseparable part of the traditional financial market, which allows asset holders to buy or sell an asset at a strike price at a certain time in the future, even though the property value has changed at that time.
However, the integration of this mechanism into a decentralized financial market is still in its infancy. DOPEX exchange is one of the leading projects to develop this protocol. Designed to maximize the liquidity of options trading, DOPEX helps to minimize losses for option sellers while maximizing profits for option writers.
The main difference between this project compared to similar competitors is that the assets do not lie still, but are fully utilized during the contract settlement period.
The unique mechanisms of DOPEX
The option pool allows users to passively earn profit by providing the underlying asset and checking the asset liquidity to users who want to buy call and put options respectively.
SSOV (Single stacking option vault) – A unique mechanism introduced by DOPEX, allowing users to lock tokens for a certain amount of time and, at the same time, make a profit from this staking asset by option trading. Users can deposit their assets into a contract, then sell the margin as a sell option to a buyer at a fixed price before settlement time.
Let's say a buyer places their assets of 10 ETH in this vault with the current ETH price of 1000 USD. Their assets will now be locked for the rest of the cycle. The above user can sell the option to the contract at this point. Here are the possibilities this user will face:
- ETH price dropped below 1000 USD. This person will still get 10ETH and a reward for the selling option
- ETH price rises above 1000 USD. This person will lose an amount of ETH but converted to USD value is still equivalent to the original 10 ETH value and the reward for selling the option.
This mechanism will retain all the inherent advantages of options trading similar to those on centralized and traditional exchanges. There is even an added benefit of being able to both stake assets and participate in options trading. At this time, the owner's locked assets will not be buried in place but will be traded as flexible assets.
DPX Token- token used to pay transaction fees as well as a reward token for the liquidity pool of options trading, wrap token.
rDPX Token - used to reward option sellers- and is also used to mint synthetic assets with the same value as real assets such as stocks, commodities, fund certificates, etc. This token is also minted to bear the burden. 30% loss for the seller if they lose joining the pool.
Options trading has always been a reliable option to hedge against volatility, especially in times of unpredictable changes in the current Crypto market. Will DOPEX be enough to revive and attract more users, turning the platform into a typical decentralized platform?