Antimatter is an on-chain DeFi derivative protocol. Each perpetual option Antimatter product has one underlying asset (ETH, wBTC.) and two parameters: option price floor and option price ceiling.
Let’s take ETH as an example: We can create an option with parameters of 1000 USD as floor price and 2000 USD ceiling price. So this product is now called ETH(1000–2000).
The CALL token for this option always gives the right to purchase ETH at 1000 USD.
The PUT token for this option always gives the right to sell ETH at 2000 USD.
If ETH is trading at $1500 then the CALL token holder can use this CALL token to purchase ETH at $1000 making a $500 profit. Conversely, the PUT token holders can use the PUT token right to sell ETH at 2000 and purchase back ETH at 1500, making 500 USD profit.
As from the example above, leverage is dynamic and will depend on the price of the product and the price of the option token.
Leverage of CALL = Price of underlying asset / Price of CALL
Leverage of PUT = Price of underlying asset / Price of PUT
To execute a call/put strategy it’s normally sufficient to buy the corresponding token from the open market. There is however also the possibility to generate and redeem option pairs.
To generate a set of option tokens (CALL & PUT) you deposit 1000 USD worth of collateral.
To redeem a CALL token for ETH you deposit 1000 USD worth of collateral and the CALL token. CALL token gets burned and you receive 1 ETH from the underlying asset pool.
To redeem a PUT token for USD you can deposit 1 ETH and the PUT token. PUT token gets burned and you receive 2000 USD from the underlying asset pool.
Arbitrage opportunities will make sure the creation and redemption balance equation always holds. If the aggregate price of call and put tokens exceed the redemption payout, then market makers will create more option tokens to supply the market.
$MATTER token is the utility token of the ecosystem. You can earn it by staking, innovative LP farming mechanism, governance staking/voting rewards, option creation, redemption and LP provision.
There are 4 pools to stake at present. And the highest APY is 601% of the -ETH($3000)/USDT LP pool.
$MATTER can be used to pay the protocol fee with a discount. Protocol fees are used to buy back tokens, including option generation and redemption fees and protocol transaction fees.
How is its performance since launched? Users and transaction amounts surged to ATH on 27th Feb, but dropped to around 80 users and 150 transactions per day after that, not much surprise. While its volume reaches daily ATH at $394,972 on 8th April. Whales coming in?
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