Market proposal

ROLL UP YOUR SLEEVES

We (Kumxy,Tonynnamdi123 & AngeldeIn) propose creating a OP/DAI (Optimisim/DAI) Future monthly market that settles in tDAI for the following reasons;
Optimisim is a revolutionary technology that escalate the principal blockchain ETHEREUM limiting transaction costs and increasing transaction throughput to make the chain run faster at a lesser cost (140x).
With Ethereum developers signaled continued progress towards the Proof-of-Stake transition (The Merge) , layer-2 solutions are expected to exploded consistently.
Also, Optimisim is Introducing the protocol’s next major upgrade (The Bedrock) and Leveling up optimistic rollups through Cannon, next-generation fault-proof architecture.
As a highly liquid asset with a daily trading volume surpassing $400 million, trading the Optimisim derivative offers a great opportunity for trades to get transferred into cash at a good rate and in a timely fashion.
Optimisim has a very vibrant community to go for support and intervention
Right now it’s trending on major exchanges, this is ample opportunity for Traders, liquidity providers and strategist to come in early make a lot of profit and have fun doing that.

Quick Info
Monthly OP/DAI Future market
First Market - expiry September 2021
Settled in tDAi
Data Source for Settlement: ??
Volatility ??
Approximate maximum leverage ??

  • ?? We would love some recommendations from the community
6 Likes

PROPOSAL

Market Description and Metadata
Rationale
See above

OP/DAI MONTHLY FUTURES
1.Cash settled futures market that will expire at the end of August against the OP/DAI FX spot price.
2.The market will be margined and settled in tDAI
3.Data used for settlement will be the final rate provided at “2021-04-01T24:00:00Z”

Naming
marketName: OP/DAI
Instrument.Code: OPDAI
Metadata
base:OP
quote:DAI
monthly
ProposedBy: @Kumzy|UpNode#1902/Tonynnamdi123#2974/angeldeln111#7758

Settlement Asset

The market will margin, settle and have fees incurred in:
{ “id”: “6d9d35f657589e40ddfb448b7ad4a7463b66efb307527fedd2aa7df1bbd5ea61”, “name”: “Dai (test)”,
“symbol”: “tDAI”,
“totalSupply”: “9376360000000000”,
“decimals”: “5”,
“source”: {
“erc20”: {
“contractAddress”: “0x65e92e892Fbb489ea263c8E52bb11D1c9b67C54d”
}
}
},

Default Trading Mode

The market will run in Continuous Trading with the following parameters:
1.tick size = 1 - set to this level because this is the minimum increment for the tDAI settlement asset.
2.quote Name: “tDAI” - the market will be quoted in tDAI

Risk Model and Parameters

The risk model for this market will be Lognormal, with the following risk parameters:
risk free rate = 0
mu = 0
risk aversion lambda = 0.001
tau = 1 hour (risk evaluation intervals)
volatility = 0.x (xx%)

We are yet to define the volatility and maximum leverage available on this market, will really need the input of our community

Data Source for Settlement ???

What data source will give quality data ?
Also, community involvement is needed here to help us get quality data source for this market
Price Monitoring

We decide to adopt the default price monitoring parameters. They are:
horizon = 43200 seconds (12hours)
probability = 0.9999999
auction_extension = 300 seconds (5 minutes)

If a very unexpected move occurs over a 12 hour look-back window occurs, then the market will be placed into an auction.

Governance Parameters

closingDatetime: “2022-08-10T00:00:00Z",
enactmentDatetime: “2022-08-10T00:03:00Z",

7 Likes

Price monitoring Parameters:
Are you considering more than 1 trigger?

As for this one it triggers if the price moves around 15% up or 15% down within 12 hours without triggering auction correct?

Are there any thoughts on adding another trigger as well that prevents price spikes of e.g. 7% within 10 minutes or similar?

Wonder what people would think.

Suggesting open source (Oracle).

But explain volatility for me…?

1 Like

Volatility is is the degree of variation of a trading price series over time.
More like the degree of price changes over a period of time.

2 Likes

I agree with this. Getting more triggers could help in protecting the market from unexpected movements. 7% or 8% within 10 to 15 minutes will be great addition

1 Like

How many decimal points could/should the market have?

We are considering 5 decimal point

1 Like

more triggers will be considered

Okay.
Thanks. I get it now

Maybe we can have something like this

trigger 1: 12h, 0.99, 5min,
trigger 2: 12h, 0.95, 10min.

1 Like

Yes, we will consider multiple triggers.

This is a good suggestion

From my understanding you are suggesting we improve by adding a second trigger

Trigger 1:
horizon = 43200 seconds (12hours)
probability = 0.9999999
auction_extension = 300 seconds (5 minutes)

Trigger 2:
horizon = 43200 seconds (12hours)
probability = 0.93
auction_extension = 600 seconds (10 minutes)

For Optimism (OP) market, short % (5%) move and time (say 300 seconds) should be cool for the first price trigger

1 Like

Followed this from twitter :laughing:

This will be a good trigger for me:

Horizon= 12hours
Probability= 20%
Auction= 20 minutes

I like OP

1 Like

Not too sure if I will love to provide liquidity or trade OP on futures because of price volatility.

But this is a good proposal

What else am I to do or just wait to vote?

Thank you.
we will consider your contribution.

1 Like

great.

You will have the opportunity to vote from Monday

OP is perfect to FOMO lovers :smiley: You can make a lot of rewards in both situations LP or trading . The next step is vote. Stay tuned