Brainstorming ideas!

Build on Opium | Research and Development
#1

Hey guys, anyone has some cool derivatives ideas what might be built on opium protocol?
Don’t have to be entirely thought out, was thinking more like a brainstorming.

For example yesterday I found one rly cool product -

Basically it’s a smart contract leveraged eth. Can read about the specifics more on their page.

That got me thinking about maybe anyone being able to take some leveraged position on smth and opium hedging that risk by offering collateral support. Smth like that… either like collateral support or smth else.

So that buyers can take leveraged position on smth with extra support so that they don’t get liquidated when it goes on the opposite direction. And shakers get share of the position. Haven’t worked out the exact numbers yet, but it’s a start. How does it sound?

I’m not a programmer, I don’t know how hard would it be to do smth like that.

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#2

thats interesting
Let me read how it works

at the same time, as I said in another post "Why dont we introduce “Opium Turbos” - highly leverage positions for an asset (say ETH).
Basically it is simple: buy turboETH for 100 DAI and get 500 DAI at the end of the week if ETH is up. Lose part or whole amount if ETH is down…

What do you guys think?"

#3

We are calculation multi-insurance pools (one pool covers several risks, getting several returns, more capital efficiency and diversification). Anyone who is good in mathematics/financial modelling please join.

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#4

I really like this idea. But there also must be a party betting against ETH going down otherwise where’s the money coming from? :stuck_out_tongue:
It would be nice to let the user choose the timespan. e.g. I bet that ETH will be up in 3 days. But there also need to be a counterpart which bets against it. I’ve no idea how to make this kind of system though :wink:

How I see it:

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This in case of some kind of ALL IN situation

  • If ETH is UP the YES positions will get 500 DAI spread relative to their position. So if there are 2 positions of 1000 DAI each, they will get 250 DAI each.

  • If ETH is DOWN the NO positions will get 500 DAI from the YES positions.

  • This means betting on YES has lower risk than NO.

  • Betting on NO is high risk / high reward as they will get or lose 100%

  • Betting on YES is lower risk / lower reward as their bet will only lose or get 25%.

  • 1% (decided by DAO) of the proceedings go to Opium holders who stake their Opium in the (new) Opium pool. Which will add more value to the Opium Token.

  • We can start with one pool with Epoch timespan of 3 days.

NOTE: This is gambling. But the actual leverage is determined by YES / NO pool ratio.

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#5

Nice work guys!

Saw the opium TURBOS today.
https://medium.com/opium-network/introducing-opium-turbos-581a647654d7
It got me so excited to see this come to life :smiley:

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#6

Lets see how it goes, what other assets can be underlying of Turbo?

We are testing Turbo AAVE on Matic as there is too much such tokens and can be cool for AAVE.

What else?

  • wBTC
  • Opium
  • DeFi Index (one of)
  • Volatility index
  • Specific DeFi tokens
  • “Real world” assets (which ones?)

0 voters

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#7

Actually now that i look at wbtc chart, i think its a pretty good option.

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#8

Brainstorm idea: NFT futures.

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#9

I have one proposition though.
IMO the staking side on the turbos should be in opium for 2 reasons at least:

  1. Increasing the demand for opium token
  2. with other coming tokens, its gonna get really messy really fast

Considering how cheap the swaps are on polygon, it shouldn’t be an issue, or are there some other issues at play here?

On second thought, why not make it all based on opium so that the price of the underlying asset is just tracked?

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#10

Sounds nice to be able to use / stake Opium Token as margin token as well. Opium Token will become a governance / utility token. Signal voting will become a bit complicated, though :stuck_out_tongue:

#11

Staking Opium may be work in the long-term.but it doesnt work at a early stage.
Currently the circulating ratio is so low(6%),so we need consider the price manipulation.Image buyer pays weth (or other tokens )to buy a turbo, he will get Opium back as reward if he wins,but its easy to manipulate the opium price.Buyer will get less opium if the price is high when the position gets liqudated,but if the price dumps 20% next day, Buyer will get loss from the dump.Thus I dont think token with much more volatile price is attractive to buyer to get as reward.
Bancor is a good example. we know Bancor is the first AMM DEX in history,but it doesnt get huge success like uniswap. Because it selected BNT as a intermediary token in its every pair while Uniswap selected ETH. Traders prefer more price-stable token,and it should works for buyers as well.
Price fluctuation is normal in crypto. But we need to protect buyer as possible.so its important to increase the circulating supply of Opium currently. when the secondary market is active enough,buyer could trust Opium is a relatively price-stable token.Maybe it’s time to propose opium as a staking token.

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#13

The buyer pays Opium token to buy turbo and gets paid out in Opium token. Margin token must always be the same.

#14

I know that,but my point is that OPIUM is not appropriate as a margin token now.Paying with eth or wbtc is more attractive than paying with opium for buyer at early stage.
I dont think most buyers are willing to pay with OPIUM. The OPIUM trading market is not enough active now, if a buyer has $2700, I just think he would prefer 1 eth to 408 OPIUM as margin token.
If we want to make OPIUM as margin token, we need make the trading market more active to avoid easy manipulation firstly.Active trading market should be with enough liquidity and volume, but two metrics of OPIUM is far from the average currently.

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#15

If you could check the circulating supply and ratio of UNI,SUSHI or any other well-know defi token on coingecko, you may understand why I want to propose to decrease the clarity fee and period

#16

They’re not exclusive to each other. You can offer both Opium and ETH. This can be a simple selection field in the UI. Issuance of Opium is a different issue.

#17

Yes, they can. Personally I think buyer will choose to select eth instead of OPIUM now.
If you want to buyer uses OPIUM, the trading market should be active enough. otherwise it doesnt make sense why buyer uses OPIUM

#18

There is interaction between OPIUM farming market and trading markets,The activeness of trading market would take effect on the LPs‘ choice to some extent

#19

:+1: WMATIC should also be an option. That’s what users most likely have in their wallet.

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#20

Yes, Token with common use is attractive.but currently the first choice could be eth or wbtc

#21

On the collateral we can use LP tokens (Opium/ETH) they are less volatile than anything else and we can propose extra farming there. I think it is very interesting and more stable

We have an idea to introduce call options on Opium and KPI based call options. So people can stake their Opium and collect premiums, at the same time buyers can get upside by only buying an option. Can be cool with right parameters.

Looks like we will propose dev-mining as well as there quite some people developing for Opium. Can be also with embedded option or KPI option on top of normal tokens.

Discussing insurance for Matic bridge at the same time

And finally we are testing short turbos, price guarantees and volatility index.

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