Options is a relatively young segment in the DeFi market, especially the complexity of concepts and order placement. Although it is a very large segment of the traditional market, the Option market is very harsh so it is only for professional investors and funds. That is the biggest barrier separating users from the Options market. To partly solve the remaining problem, Panoptic was born.
What is Panoptic? Panoptic is a protocol that supports Option trading without expiration and does not rely on Oracle prices. So what is Panoptic? How does it solve the problem? Let’s find out in this article!
To understand more deeply about Panoptic and Options, you can read some of the following articles:
- What is Dopex (DPX)? Overview of Dopex Cryptocurrency
- What is Lyra (LYRA)? Complete Guide to Lyra Cryptocurrency
- What is Ribbon Finance (RBN)? Overview of Cryptocurrencies Ribbon Finance
What is Panoptic?
Overview of Panoptic
Panoptic is a protocol that supports Option trading without expiration and does not rely on Oracle prices. Normally, options contracts must have a term, but with Panoptic, the project has a major breakthrough in removing the term to make it more user-friendly for DeFi.
Panoptic does not support transactions for users by creating AMM Pools or relying on updated prices from Oracle, but it uses an intermediary protocol, Uniswap V3. It takes advantage of the extremely large and available liquidity source from Uniswap to execute trading orders that meet user needs.
On Panoptic there is an Asset Pool where lenders can deposit assets to earn fixed interest rates from borrowers (who are also traders). Traders can borrow assets up to 5 times the collateral to execute their orders.
The protocol charges a normal commission per order of 0.6%, but when the asset usage in the Pool is greater than 50% the commission will be reduced to 0.2%.
Mechanism of Action
Panoptic users
- Lender: Lenders deposit assets into the Pool to earn fixed profits.
- Traders: Traders mortgage assets to execute trading orders with a volume of up to 5 times the collateral.
Protocol components
- Panoptic Pool: A pool that contains the borrower’s assets and will lend to the trader every time an order is executed.
- Uniswap V3 Pool: Is the Amm Pool on Uniswap connected to Panoptic to support user transactions on Panoptic.
Panoptic’s mechanism of action
Put Options
For example: User places a Put order on Ethereum asset with volume K, Panoptic will take volume K ETH in Panoptic Pool to Uniswap to convert into DAI and hold it until the user closes the order or the order is liquidated. When the order is closed, Panoptic will swap that amount of DAI into ETH on Uniswap to return to the Pool:
- Loss: In this case, the order closing price is higher than the order entry price, meaning when swapping from DAI to ETH to pay Panoptic Pool, there will be a shortfall in DAI, that shortfall will be compensated by the collateral of the trader. Trader.
- Word: In this case, the order closing price is lower than the order entry price, meaning when swapping from DAI to ETH to pay Panoptic Pool, there will be an excess amount of DAI, that amount of DAI will be the reward for the Trader after subtracting it. fees.
Call Options
For example: User places a Call order on Ethereum asset with K volume, Panoptic will take K DAI volume in Panoptic Pool to Uniswap to convert into ETH and hold it until the user closes the order or the order is liquidated. When the order is closed, Panoptic will swap that amount of ETH into DAI on Uniswap to return to the Pool:
- Loss: In this case, the order closing price is lower than the order entry price, meaning when swapping from ETH to DAI to pay Panoptic Pool, there will be a shortfall in DAI, that shortfall will be compensated by the collateral of the trader. Trader.
- Word: In this case, the order closing price is higher than the order entry price, meaning when swapping from ETH to DAI to pay Panoptic Pool, there will be an excess amount of DAI, that amount of DAI will be the reward for the Trader after subtracting it. fees.
Liquidation
Panoptic’s system will calculate when the price moves in a direction unfavorable to the user’s position, what percentage of the collateral is being lost. When close to 100%, the order will be liquidated. If when liquidating the asset price drops too much and is not enough to pay Panoptic Pool, that amount will be divided equally among liquidity providers.
Development Roadmap
Core Team
Jesper Kristensen: Co-Founder & Chief Operating Officer
- In 2014, he graduated with a Master’s degree in Physical Engineering from Cornell University with an almost perfect score. A year later, he continued to successfully earn a doctorate in Applied Physics and Engineering & Computer Science at the same school.
- After graduating, he started his first job at GE Research, where he worked for nearly 4 years. The positions he held while working at GE Research were Lead Engineer and Research Engineer.
- In 2019, he worked as Senior Software Engineer | SWE & DevOps at Flatiron Health. But after about a year and a half, he left and moved to another job.
- In 2021, he worked as a Quantitative Developer at Balyasny Asset Management LP, and he has been with this company for less than 1 year.
- Currently he is Owner at J. Kristensen Enterprises, Course Instructor – Advanced Solidity Bootcamp at RareSkills. In particular, he is Co-Founder & Chief Operating Officer at Panoptic, Panoptic is the infrastructure for derivatives.
Guillaume Lambert: Chief Executive Officer
- In 2007, he graduated with a Bachelor’s degree in Physical Science from McGill University. Four years later, he continued to successfully earn a PhD in Philosophy and Physics at Princeton University.
- After graduating, he spent more than 4 years doing Postdoctoral work at New York University and The University of Chicago.
- Currently, he is Chief Executive Officer at Panoptic, a perpetual Option protocol.
Investors
- December 5, 2022: Seed round successfully raised $4.5M led by Gumi Cryptos Capital, with participation from investors such as Uniswap Labs Ventures, Coinbase Ventures, Jane Street, Blizzard (Avalanche ecosystem fund) , Zee Prime Capital.
- November 20, 2023: Panoptic continues to successfully raise $7M in Seed round led by Greenfield Capital, with the participation of HashKey, Gumi Cryptos Capital (gCC), L1D, Heartcore Capital, Comma3 and Zee Prime Capital,…
Tokenomics
Updating…
Exchanges
Updating…
Panoptic’s Information Channel
- Website: https://www.panoptic.xyz/
- Twitter: https://twitter.com/panoptic_xyz
- Medium: https://blog.panoptic.xyz/
- Discord:
Summary
The Option land is still very fertile, especially in the upcoming cycle, there will be a large flow of money poured into this segment when Crypto is legalized in many countries. So Panoptic’s potential is really huge, this is a project that you should closely follow to find investment opportunities for yourself.
So I have clarified what Panoptic is? Panoptic cryptocurrency overview. Hope this article gives you a lot of useful knowledge!