What is Polynomial Protocol? Polynomial Protocol is a Derivatives product that aims to create passive profit strategies based on many different assets and has a Perpetual product that provides leverage up to x25 for Traders to execute Long Short orders. Polynomail Protocol attracts many different investment funds such as Archetype, Genblock Capital, Caballeros Capital and many other prominent individuals.
So what is it about Polynomial Protocol that attracts so many investment funds? Everyone, let’s find out in this article!
What is Polynomial Protocol?
Polynomial Overview
Polynomial Protocol is a platform that builds strategies around derivatives to generate passive profits based on various assets. Currently, Polynomial Protocol is a DeFi Options Vault (DOV) that passively profits by selling options contracts directly to AMM platforms.
Polynomial Protocol is also a Perp protocol that provides traders with leverage to go Long Short on the market’s Top Altcoins.
To participate in using Polynomial Protocol products, you need to have or exchange assets you have through assets that Synthetix supports. Polynomial Protocol will be built and developed on the Optimism ecosystem.
Polynomial mechanism of action
Products provided by Polynomial Protocol.
Polynomial Earn Vaults
Polynomial automates strategies to generate passively profitable products across a variety of assets. Polynomial Earn is the first DeFi Options Vault (DOV). Full on-chain execution by selling options directly to AMM.
Call Selling
Asset Collateralised
Property mortgage vaults are typically for users who want to stack more specific assets, regardless of their value.
For example: Let’s say a user is selling a 100% collateralized ETH option with a strike price of 2000 sUSD when the price is $2000, with an upfront fee of approximately 0.1 ETH (200 sUSD). And the cases occurring with different price fluctuation directions are as follows:
- Case 1: ETH price increases to 2200, net loss 200 sUSD (about 0.0909 ETH) = 0.009 ETH (20 sUSD) . FaceAlthough I lost ETH worth 200 sUSD, the remaining sUSD value of my initial capital is still relatively the same as when I started because ETH also increased in value.
- Case 2: ETH price drops to 1800, net profit is 0.1 ETH (180 sUSD). Although the number of ETH increased by 0.1, it is worth 1980 sUSD.
sUSD Collateralised
The sUSD collateral vault is typically for users who are looking for pure yield and want to eliminate the volatility of the asset they are selling options on.
For example: Let’s say a user is selling an ETH sUSD collateralized option with a strike price of $2000 when the price is $2000, with a $200 premium upfront. And the cases occurring with different price fluctuation directions are as follows:
- Case 1: ETH price increases to 2200, net loss 200 sUSD. Unlike collateral stores, although ETH increases in price, you do not receive the benefit from it because the upfront fee is locked in sUSD.
- Case 2: ETH price drops to 1800, net profit 200 sUSD. No matter how low the price of ETH goes, sellers remain unaffected because they have locked in their profits in sUSD.
Put Selling
Sell OTM put options to execute this strategy. The selling strategy comes in handy when you have a moderately bullish view on the asset. This strategy is not ideal for an extremely bearish market.
For example: Options selling strategy, Let’s say ETH spot price is 3000 USD and sell 2700CE options. Let’s examine possible scenarios for strategy bProject 2700CE and receive 300 USD as premium. And the cases occurring with different price fluctuation directions are as follows:
- Case 1: ETH price at 3100 at expiration, gThe value of put options will depend on their intrinsic value. The intrinsic value of the put option at expiration in this case is equal to 0. NBut since I sold this option, I can only keep the $300 premium.
- Case 2: ETH price at 2700 at expiration. The result will be the same as the field, may retain the $300 premium.
- Case 3: ETH price at 2300 at expiration, believes that the market is moderately bullish, but the market shows a strong downward trend. In this case, the put option seller will suffer a loss proportional to the downward movement. The loss is calculated as 300 – 400 = -100, so the seller will lose $100.
Polynomial Trade
This product is a decentralized derivatives exchange powered by the Synthetix protocol on Optimism. The exchange allows up to 25x leverage trading with a faster, smoother user interface and lower fees than other derivatives exchanges. In addition, the protocol also provides another product, Swap, which helps users convert assets right on the protocol.
Development Roadmap
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Core Team
Mubaris NK: Founder
- In 2019 Mubaris successfully obtained a Bachelor’s degree in Information Technology at Indian Institute Of Information Technology Allahabad.
- In 2019, Mubaris worked as a Software Analyst at Citi. After nearly 2 years of working here, he left the company and found a new job.
- In 2021, Mubaris worked as a Software Engineer at Instadapp, but he worked remotely and only worked here for 3 months.
- After quitting his job at Instadapp, Mubaris and his colleagues founded Polynomial.
Salman Naseer: Founder
- In 2019, Salman successfully obtained a Bachelor’s degree in Information Technology at Indian Institute Of Information Technology Allahabad.
- In 2019, Salman worked as a Fullstack Developer at CodeAsylums.
- After that, Salman moved to work at Tekion Corp with the positions of Associate Software Engineer and Software Engineer.
- Currently, Salman and his colleagues founded Polynomial.
Investors
- October 20, 2021: Pre Seed round successfully raised $1.1M led by Archetype Ventures, along with a number of other investors such as Genblock Capital, Caballeros Capital, Paul Veradittakit, Siddharth Jain, Don Ho, Richard Ma, Sowmay Jain .
- May 11, 2023: At the Seed round, Polynomial Protocol continued to successfully call for an undisclosed amount of money with the participation of Road Capital, Archetype, Caballeros Capital,… Besides the participation of Jordan, Kain Warwick from Synthetix, Eden Au from The Block,…
Tokenomics
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Exchanges
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Information Channel of Polynomial Protocol
- Website: https://www.polynomial.fi/
- Twitter: https://twitter.com/PolynomialFi
- Discord:
Summary
So I have clarified what Polynomial Protocol is? Overview of Cryptocurrency Protocol. Hope this article brings you a lot of useful knowledge!