We aim to decide whether a particular cryptocurrency is bullish or bearish by using a financial derivative: perpetual options. We achieve this by tokenizing perpetual options so that investors can forge and trade these tokens. There are two token types: call token and put token, which correspond to call and put perpetual options.
Understanding how it works
To understand how these two token types work, we have a price interval that contains the current price of a certain cryptocurrency and we anticipate that the price of this currency will change within this interval. If we work with ETH and in case that the price varies within the interval, one can generate AntiMatter token(call and(or) put) by providing two types of underlying assets, such as ETH and USDT. Typically, one needs to provide more ETH to generate a call token and more USDT to generate a put token. The cost of producing tokens will vary in order to stabilize the platform.
Placement around other derivative protocols in the space
Among the four different protocols, there are some similarities and differences. Perpetual protocol and shield are perpetual contracts using different algorithms. Perpetual uses a product as invariance to stabilize the system. while shield limits the amount of money for a trader. Futureswap has similar features to Antimatter because it has dynamic fees to protect the platform. On the other hand, the dynamic counterpart in Antimatter is the cost to produce tokens. The difference is that Antimatter has a price floor and price ceiling. It preserves the feature of a straddle(options), but Futureswap does not.
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