What are Psy Options? Psy Options is a decentralized options contract project on Solana that was launched in the Solana x Serum DeFi Hackathon. So let’s find out what is interesting about this project, everyone, in this article.
What Are Psy Options?
Overview of Psy Options
Psy Options is a decentralized options trading platform project built and developed on the Solana ecosystem.
Mechanism of action
Like other options exchanges, Psy Options gives people the option to buy or sell underlying options. An options contract on the Psy Options platform consists of 5 components:
- Underlying assets: Is an asset where people predict whether the price will go up or down to exercise options.
- Assets are quoted: An asset that people use to pair with a basic asset. Expiry time: The final time the option buyer has to decide whether to exercise their option or not.
- Exercise price: Is the price at which the option contract is exercised.
- Contract size: Is the amount of the underlying asset that people want to exercise options on.
For example: Tu Huyen executes an option to buy SOL/USDC options for $30 on May 3, 2023 with a quantity of 100 SOL. So here SOL is the underlying asset and USDC is the quoted asset. The contract execution price is $30. The expiration date is May 3, 2025 and the contract size is 100 SOL.
So how to trade options on Psy Options?
As in the example above, the current price of SOL at this time is $20. Linh Nhi is a person who predicts the market will decrease in the next time, so Linh Nhi will create a sell option on SOL at a price of $30 for Tu Huyen. . By May 3, 2023, Tu Huyen has the right to exercise his options or not. If he does not do so, Tu Huyen will lose the insurance premium for his option contract.
Regarding specific activities, Linh Nhi will mortgage her 100 SOL into the platform, then Psy Options will provide Linh Nhi with 2 tokens: Option Token and Equity Token. After receiving the Option token, Linh Nhi can sell it to Tu Huyen as a representation that she guarantees she has 100 SOL to deliver to Tu Huyen if the price is 30$. By the time the contract expires, whether Tu Huyen exercises his options or not, the Option Token will be canceled.
Equity token is the remaining balance after exercising the option. Suppose Tu Huyen exercises his option with 60 Sol, then Linh Nhi’s Equity will only have 40 SOL left, and if Tu Huyen does not exercise his option, Linh Nhi’s Equity Token will still have 100 SOL and She will receive 100 SOL and insurance fee back from Tu Huyen.
Development Roadmap
Third quarter of 2022
- Psy Markets v2: Add Future Trading feature
- Cross chains
Fourth quarter of 2022
- Psy Markets v3: Add Spot trading feature.
Core Team
- Tommy Johnson: Was an early contributor to PsyOptions, was part of the team that won the Solana x Serum DeFi Hackathon. Tommy has 10 years of experience in the engineering industry and has been involved in building Solana from day one.
- Taylor Johnson: Along with Tommy Johnson, Taylor was also part of the team that won the Solana x Serum DeFi Hackathon. Taylor also has more than 10 years of experience in the technical industry and is in charge of front-end development.
- Whiteseal: Whiteseal holds a PhD in computer engineering specifically in cybersecurity and user experience design. With Crypto, Whiteseal has been involved in Bitcoin mining since the early days and sold it for $100 and sold most of the Ethereum mined for $400.
- Jerry: Be a core contributor to expanding the portfolio of products in the Psy ecosystem. Jerry has over 6 years of experience working with technical expertise in many startups and leading technology companies.
- LaikaSoul: Is a core contributor on Psy Finance, focused on scaling the infrastructure to accommodate billions of users. Laika has over 10 years of experience in business development and expansion for startups.
Investor
October 19, 2021: PsyOption has raised $3.5M from investment funds: Alameda Research, CMS Holdings, Ledger Prime, MGNR, Wintermute and Airspeed18.
Tokenomics
PsyOptions token information
- Project name: Psy Options
- Token code: PSY
- Token classification: SPL
- Total supply: 1,000,000,000
- Smartcontract: PsyFiqqjiv41G7o5SMRzDJCu4psptThNR2GtfeGHfSq
Token Allocation
Token Allocation
The entire total supply of tokens will be paid in installments within 4 years, with some points to note as follows:
- Core Team & Advisor will be locked for 1 year then paid in installments over the next 3 years.
- All rounds with the presence of VCs are paid right from the beginning and after 1 year, they are paid more.
Exchanges
Currently PsyOptions is being traded on the Gate.io and Raydium exchanges
PsyOptions Information Channel
- Website: https://www.psyoptions.io/
- Twitter: https://twitter.com/PsyOptions
- Discord: https://discord.com/invite/MgDdJKgZJc
- Telegram:
Summary
Along with the market downturn and the collapse of FTX, the Solana ecosystem has encountered many difficulties, Psy Options is also heavily affected, the project TVL is currently only about more than $2M. If you are interested in the project, please follow me to update the latest information.