Introducing AntiMatter’s first product: DeFi’s first Perpetual Ethereum Put on-chain Option product based on an innovative polarized token mechanism.
A put option is a contract that gives the owner the right to sell an underlying asset against a specific price.
Perpetual Put Option product is designed for:
- Downtrending market
- Short term hedging strategy execution
Introducing polarized tokens
Antimatter is introducing the concept of Polarized Tokens. An AntiMatter option product will always consist of two forces: positive (long) and negative (short). By trading these tokens, users can get exposure to the underlying product by going long or short.
The two forces will always balance each other out making a sum of the two equal a constant C.
Understanding Antimatter products compared to understanding Uniswap mechanism
On Uniswap casual users don’t need to understand the complexity of the underlying mechanisms to make simple trades, while advanced users will need to understand the platform more in-depth to create pools, provide liquidity, etc. Antimatter will work in a similar way.
- Traders/speculators:(Casual users who only use token-swap functionality on Uniswap): Only need to know about Antimatter long tokens to get exposure to AntiMatter put products or call products you buy positive(long) polarized tokens from the open market.
- Liquidity providers/market-makers:(Advanced users who provide liquidity, arbitrage, and market-make): Generate and redeem polarized tokens, provide underlying liquidity and perform arbitrage. Advanced users can earn an extra yield on their underlying asset by going short on the put/call product and earning fees.
- Funding fees are dynamic.
To explain this further using our Perpetual Ethereum Put Product:
- -ETH($C) = Long Put Option Token Symbol (Hold this for put long exposure.)
- -ETH($C)S = Short Put Token Option Symbol (Hold this for put short exposure. In the Perpetual Put Product going short on the put option equal holding spot ETH.
- Note how there is (-) in front of the ETH product symbol. (-) denominates the put product, while our call product in the future will be denominated with (+)
To execute a long-put strategy, the trader can purchase -ETH($C) tokens from the open market. For example, if the market price of -ETH($C)S is 1800 USDT and the constant C is 3000 USDT, the current price of -ETH($C) will be 1200 USDT. A trader purchases an -ETH($C) at 1200 USDT, then the price of -ETH($C)S appreciates to 2000USDT, then the -ETH($C) will be at 1000 USDT. Conversely, if the price of -ETH($C)S depreciates to 1000USDT, then the -ETH($C) will be at 2000 USDT.
In extreme market conditions, it is possible that the value of -ETH($C)S exceeds constant C, this means the value of -ETH($C) is equal to 0. You may think this is liquidation, but if you keep holding -ETH($C), it always represents the right to redeem in the future under perpetual swap conditions.
Explain ETH Put Option product like I’m 5 years old:
Simple users: Buy -ETH($C) from the open market to get short exposure on the underlying asset.
Advanced users: Mint -ETH($C) + -ETH($C)S by depositing C collateral to market-make, add liquidity and perform arbitrage.
I think in the future ETH will DECREASE in value.
I buy -ETH($C) from the open market and hold it.
I’m now long on the put option product. Meaning I’m short on ETH. ETH goes down, my -ETH($C) increases in value.
AntiMatter is launching its own OptionSwap for polarized option tokens, integrating a shadow token mechanism
Since Uniswap does not support rebasing mechanisms Antimatter will be launching its own OptionSwap — Uniswap for polarized option tokens in Q2 2021.
There are 3 key players in the AntiMatter product ecosystem:
- Traders and speculators: Speculating and getting exposure on the underlying product by trading the two underlying polarized tokens
- Market-makers: Generate pairs of polarized tokens by depositing collateral C, supplying liquidity to the product
- Arbitrager: Helps maintain a balance of C = -ETH($) + -ETH($)S