What Is Dopex?
Dopex is an options exchange that allows traders to buy, put, or sell options at chosen strike prices. It also includes a novel feature, Single Staking Option Vaults (SSOVs), allowing users to lock up tokens and earn yield.
Background
An anonymous group of developers founded Dopex in 2021. However, notable crypto personalities, including TzTok-Chad, are involved in the project.
How It Works
Users can deposit assets into a contract, selling deposits as call options at fixed strikes for end-of-month expiries. DPX is primarily used to vote on proposals, while rDPX is minted and distributed to compensate pool participants for their losses. The minting of rDPX is determined by the net value of losses incurred at the epoch’s end for a pool. It can also increase rewards from fees and as collateral to mint synthetic derivatives.
The critical innovation of Dopex is its creation of Single Staking Option Vaults (SSOVs). These allow users to stake tokens for a specified period and earn a yield on their assets. The platform employs a two-token model, with DPX as the governance and fee accrual token and rDPX as a rebate token to incentivize protocol usage.
Key Takeaways
- Dopex is an options exchange that allows traders to buy, put, or sell options at chosen strike prices.
- The platform includes a novel feature called Single Staking Option Vaults (SSOVs), which allows users to lock up tokens and earn yield.
- Dopex utilizes a two-token model: DPX for governance, fee accrual, and rDPX as a rebate token to incentivize protocol usage.
- Users can deposit assets into contracts sold as call options at fixed strikes for end-of-month expiries.
- The minting of rDPX is determined by the net value of losses incurred at the epoch’s end for a pool and can be used to increase rewards from fees and as collateral to mint synthetic derivatives.
