Antimatter is an innovative lightweight on-chain and cross-chain DeFi perpetual options protocol based on a polarized token mechanism.
The Uniswap for Options and Derivatives
The current DeFi derivative platforms are more complex than centralized exchanges. There are currently no DeFi platforms where non-experienced users can execute their long and short strategies thus hindering mass adoption and retail use.
To build financial products for mass adoption, Antimatter will aim for simplicity and normalization as the main priority for every product released. The initial Antimatter product will be an ETH perpetual put option product where anyone can short and long at any given time with secondary market opportunities (market-making and arbitrage).
Introducing polarized tokens
Antimatter is introducing the concept of Polarized Tokens. An option product will always consist of two forces: positive (call) and negative (put). By trading these products, users can get exposure to the option and thus either a call or a put.
The two forces will always balance each other out making a sum of the two equal a constant C.
Taking ETH as an example:
We have two tokens, one representing [+ETH] and the other representing [-ETH] then the sum of [+ETH] and [-ETH] will always equal the constant C. This constant is maintained by the mechanism transforming ETH into [+ETH] and [-ETH] and burning [+ETH] and [-ETH] into ETH.
First ANTIMATTER law: Value (+PRODUCT) +Value(-PRODUCT) =C
To explain this mechanism further we will use our first product put ETH($4000) as an example
By depositing a C amount of collateral into the ETH($4000) product the user gets a pair of tokens [+ETH] and [-ETH]. Deposits of multiple C will generate multiple pairs of tokens. The amount of [+ETH] will always equal the amount of [-ETH] in the market. Conversely, to exit the ETH($4000) product, anyone can use a pair of [+ETH] and [-ETH] to redeem C amount of USDT at any given time.
Traders can speculate and get long or short exposure on ETH by trading [+ETH] and [-ETH]. The [+ETH] value will equal the market price of ETH thus holders of [+ETH] will be rewarded funding fees generated from [-ETH] holders and additional fees for helping maintain equilibrium.
Antimatter products will introduce arbitrage opportunities which will uphold the first Antimatter law.
There are two types of arbitrage opportunities. In case [+ETH] and [-ETH] values exceed the constant C value, there arises an arbitrage opportunity for users to deposit C to generate pairs of [+ETH] and [-ETH] and sell for more value than C. In contrast, if the addition of the value of [+ETH] and [-ETH] is less than the constant C value, then there arises an arbitrage opportunity for users to purchase [+ETH] and [-ETH] and redeem for C.