During the last several weeks we have been working hard on Antimatter models and products. In this post, we are aim providing our community with updates on a few major features:
We reviewed a few decentralized derivatives products and the core problem we found is there a permissionless platform does not exist. The existing defi derivative platforms are nothing different from what centralized exchanges offer with similar models and similar underlying assets such as ETH and BTC.
There is lack of useability of the product itself apart from high yield farming. It is difficult and disadvantageous to put yield farming as the core power of attracting liquidity for the long term, as there will be a day with no more rewards, and people will turn away. The platform can be sustainable only if it caters to some real needs.
What Antimatter is aiming for is not to create a product or user experience similar to what centralized exchanges offer. Instead we are looking to break the barrier and make the platform permissionless.
Uniswap and a few others already provide a stable and sustainable spot trading, and it scales very fast because it is permissionless, and people can list and provide liquidity to any tokens. Antimatter will introduce option creation product and enable anyone to create any token option market. The option market creator will be responsible for the liquidity of the market. As a result, we are aiming to create a parallel production line for perpetual options that Uniswap builds for spot tradings.
The permissionless option creation on Antimatter is open to any tokens, and the process of creating an option product is as easy as entering four parameters: target asset, stable coin, price floor and price ceiling.
Primary and secondary market
The Antimatter system consists of primary and secondary market. The two-level markets serve the needs of different parities. Primary and secondary markets are dependent on each other. The primary market is for parties to generate and burn options. And it is also for arbitragers to find arbitrage opportunities to balance the system.
The primary market represents market creation and it is for professional groups such as market makers, traders etc. The normal users do not need to interact with primary market. In the Antimatter portal, the Option exercise section is for primary market. Market makers can create their option product through generation and exit an option market through option redemption.
The Antimatter secondary market is for users who want to have long or short positions in Antimatter options. The secondary market is linked to Uniswap backend and the purchase and sale of option tokens is conducted through Uniswap (We will build our own option swap in the future).
Users can identify the call and put options and swap or provide liquidity within each option. In the Antimatter portal, the option trading section is for secondary market. Users can trade and add liqudity to the option products.
New interface and user experience
Derivatives including perpetual options are complex investment products and it is difficult to make it easy to use onchain. From our testnet version one, we found that the Antimatter option symbol is confusing for many users and there is a lack of information displayed on the product for people to make trading decisions. We borrow product and user flow idea from Uniswap, but we found that there is a difference from spot trading and option trading. As a result, we decided to completely redesign Antimatter product.
Product feature 1- categorization
The Antimatter option product consists of three sections: Option trading, Option exercise and option creation. The option creation (also mentioned above) is for market creators to create market; the option exercise is for market makers, and the option trading is for normal users.
Product feature 2 — Narrow down options, call token and put token
As we experimented with Uniswap-like user experience, we realize that it is eaiser for user to navigate if we make each call and put tokens into different cards. The idea is borrowed from Bounce Finance, where each pool is dedicated to one specific asset. This allows people to search for their favourite options and locate specific token pools.
Product feature 3: Visual
The call and put tokens are listed on dex for trading and liquidity provision. Since call and put tokens are derived from the underlying assets’ value and are complex themselves, we are integrating market price charts and formulate model prediction charts for people to have more visual reference. The price predicted chart reflects every price point of call and put tokens against underlying asset market price rate.
And more to explore
Documents and user guide
The Antimatter product is different from traditional option mechanism. After hearing a lot of community feedbacks, we decide to create a document space for people to explore our models and user guides for the platform. The documents are not finished nor finalized, but you can visit https://docs.antimatter.finance/ to take a look of it.
We have solved the issues with our math model V1 and we are running some testing on the current model. The model is complex and we will explain in plain words in a separate article.