Hello there!
As preciesly mentioned by @ottodv in 0ri9inaI thread
we have an issues with daily turbos. Liquidity providers steady at loss in daily turbo pools.
Please take a look briefly on the original discussion (with clever statistics pictures) to more understand context of this thread.
My idea inspired by @ottodv was instead of just “brrrrr” $OPIUM onto liqudity providers to compensate their losses, make incentive program to improve Daily Turbo product so LP become happy from true working product itself rather than “fake” profits.
So, I propose two things by this thread:
- Allocate funds on the bounty to improve daily turbos. Good funds
- Call the community to participate in this discussion, because I propose to split the bounty pool between all the active participants of this thread. The proportion can be discussed below… this is details…
So, four questions we have to answer by this discussion:
- Which exact mechanizm for daily turbos improving
- Decide about bounty pool size
- Decide how to split bounty between active participants who participated in this discussion.
- How we gonna to evaluate the success of proposed and selected idea.
And because of often usage of the “Daily Turbo” term - lets use abbrivehture instead : DT
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As initiator of this I will share my thoughts on the primary question: HOW to improve DT.
From my feelings and (limited) observations - most of the profit deals for DT buyers is occur at the last minutes before DT closing its doors for turbo buyers and at the “in the money” price of Turbo option. Which means that of underlaying asset is above < strike price >.
So in this case, turbo buyers have a very high probability to win at the expiration.
Having that in mind I propose to exclude ability to buy Turbo in the case when < current price > is above < strike price >
I dont know how to do it in technical terms and is it possible to do at all ))
but… thats my idea.
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Thanks for starting this thread @sergelove and for coming up with a better solution!
One important remark, this problem doesn’t only affect Daily Turbos, every Turbo can still be bought if the underlying asset is above the strike price before the market is closed to buyers. I think we should aim solutions at all Turbos.
The main thought I had was that Turbos should be sold at market value. Using whatever complicated formula options use with their “greeks” to determine a fair market price.
Buying an in the money Turbo would just be more expensive than the current price minus strike price. In other words a small premium would still be paid as in any normal market.
