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About Dopex
Key Points:
- Dopex is a decentralized options protocol that targets liquidity maximization and minimizes losses for option writers.
- The protocol offers a rebate system for losses based on exercised options, paid in the protocol’s rebate token rDPX.
- Dopex was founded in spring 2021 by an anonymous group of developers.
- The project is backed by pseudonymous whales from Crypto Twitter.
- Options on Dopex are designed to mirror Deribit, the market leader in cryptocurrency options.
- The total supply of DPX is 500,000.
- DPX is the protocol’s governance token used for voting on protocol and app-level proposals.
About Dopex: Empowering a Decentralized Options Trading Ecosystem
Introducing Dopex (DPX): A Revolutionary DeFi Protocol
Dopex is a decentralized options protocol designed to optimize liquidity while mitigating losses for option writers and amplifying gains for option buyers. By providing a seamless and intuitive platform, Dopex empowers anyone to participate in an option pool. Users can deposit base and quote assets into their respective pools, generating passive income through option writing and acquiring discounted options via liquidity pools.
Furthermore, option writers can capitalize on a rebate system, which provides compensation for losses incurred on exercised options on a monthly or weekly basis. This rebate is calculated as a percentage of the losses sustained by option writers during a weekly epoch, and is subsequently paid out in the protocol’s native rebate token, rDPX. Participants in the option pool receive a proportion of rDPX commensurate with the value of their losses. By leveraging this rebate system, option writers can reap a higher return than they would through traditional hedging strategies.
The Visionaries Behind Dopex: Meet the Founders
Dopex was established in the spring of 2021, spearheaded by an anonymous collective of developers. While the team’s size and composition remain shrouded in mystery, several key members have been identified through their Twitter profiles:
- TzTok-Chad (Senior Developer)
- Casio (Product Manager)
- Witherblock (Developer)
- Halko (Developer)
- Hakho (UI Designer)
- Psytama (Developer)
The project benefits from the esteemed support of several influential, pseudonymous figures from Crypto Twitter, notably Tetranode, DefiGod, and DCV Capital, a self-proclaimed collective of visionary angel investors. Notably, Dopex emphasizes its independence, underscoring that it does not receive backing from venture capital funds and has no intention of collaborating with them.
Dopex’s Distinctive Edge: A Revolutionary Approach
Options on Dopex are meticulously designed to emulate the industry benchmark set by Deribit, the trailblazer in cryptocurrency options. Dopex offers European-style options, which can only be exercised at expiry, thereby ensuring a high degree of flexibility. These options are fully collateralized, with the underlying assets (currently ETH and BTC) or quote assets (USDT for settlement purposes) serving as backing. Issued as ERC-20 tokens, they can be seamlessly purchased from the Dopex Options AMM, allowing buyers to effortlessly exchange them on other prominent AMMs, such as Uniswap or SushiSwap, or potentially trade them over-the-counter and on centralized exchanges.
Dopex employs “epochs” to facilitate the accounting of assets, option flows, and the distribution of DPX token rewards and rebates, thereby incentivizing liquidity provision to the platform. Options are categorized into either weekly or monthly epochs. Notably, options pools operate on a permissionless basis, allowing anyone to assume the role of a liquidity provider by contributing base or quote assets to the pools. At the conclusion of an epoch, liquidity providers are entitled to withdraw their assets. This mechanism enables LPs to generate passive yield with minimal protocol interaction, while also collecting rebates if the written options prove unprofitable. Furthermore, options writers benefit from liquidity rewards during the protocol’s bootstrapping phase. In contrast to traditional centralized options exchanges, users can provide liquidity in an automated and streamlined manner, eliminating the need to manually seek out liquid markets.
Buyers can seamlessly exchange their options for alternative expiry dates and/or strike prices, leveraging volume pools that enable deposits prior to weekly global epochs. Furthermore, buyers can utilize funds from the pool to acquire options from any option pool at a 5% discount, thereby facilitating the creation of sophisticated option hedging strategies. Additionally, Single Staking Options Vaults empower users to stake their DPX and rDPX while concurrently selling them as call options to buyers, allowing DPX holders to continue earning yield on their tokens and harness them as productive assets.
The Circulating Supply of Dopex (DPX) Coins: A Closer Look
The total supply of DPX is capped at 500,000. As the protocol’s governance token, DPX facilitates voting on protocol and app-level proposals, while also generating fees and revenues from pools, vaults, and wrappers built atop the protocol. The distribution of DPX is as follows:
- Operational Allocation (17%): disbursed over a five-year period, encompassing governance community development, platform upgrades, and operational expenditures.
- Liquidity Mining (15%): allocated over a two-year timeframe.
- Platform Rewards (30%): distributed over a five-year period, incentivizing the utilization and maintenance of the protocol.
- Team (12%): 20% allocated to liquidity pools, with the remaining 80% subject to a two-year vesting period.
- Early Investors and Token Sale (26%): comprising 11% allocated to early investors, vested over a six-month period, and 15% allocated to token sale participants.
The Dopex Network’s Security Framework: A Robust Defense Mechanism
Dopex has successfully launched on Arbitrum, a cutting-edge layer-two scaling solution built on Ethereum, which leverages the power of optimistic rollups. This innovative technology enables the trustless recording of transactions on the second-layer blockchain, with periodic broadcasts of merkle roots to the first-layer blockchain. External validators then verify these merkle roots, which introduces a delay of typically one week for withdrawing funds from layer-twos operating on optimistic rollups.
Where to Acquire Dopex (DPX): A Comprehensive Guide
DPX is conveniently listed on prominent decentralized exchanges, including Uniswap (V2) and SushiSwap, ensuring seamless accessibility for users.
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