In the last medium post, we explained our jounrey to finding perpetual option mathematical models. We are thrilled to announce that we have finalized the mathematical model for Antimatter perpetual option V2. This is the first innovative non oracle-based model in the DeFi perpetual option space.
Key highlights of the The Antimatter V2 model:
1. While the arbitrage condition is not met across all price point within the price floor and ceiling range for Antimatter V1 model, the V2 model meets condition for smooth arbitrage for all price points within the range.
2. In Antimatter V1, we emphasize that the sum of call and put tokens should equal to a constant. This equation limits the leverage of both tokens and the upside of profit that can be made from trading call and put tokens. In the V2, we abandon this constrain and increase the potential price movements for both call and put tokens.
3. Elimination of Uniswap pool for call and put tokens. The liquidity pool for call and put tokens in V1 largely affected the trading and arbitrage of the tokens. We have changed the underlying logic for buy and sell of call and put tokens. Without trading on Uniswap, the buy and sell interact with Antimatter contract. Buying action now generates tokens and selling redeems them.
4. Simplistic arbitrage: because of all the changes above, the arbitrage is as simple as comparing the market price of the target asset with the underlying asset value of call and put tokens.
5. We maintain the core features of non oracle-based model: no liquidation and no funding fee.
The following is the Antimatter V2 paper:
Experimenting with numbers:
Following the finalization of the V2 math model, we have built an excel sheet for community to experiment with numbers. You can access the excel sheet here: https://raw.githubusercontent.com/antimatter-finance/antimatter-assets/main/V2%20modelling.xlsx
What is next?
We have launched the V2 math model on Ropsten and are running experiment with ETH/DAI perpetual options. You can find contract information here:：
proxy Factory 0x90183C741CC13195884B6E332Aa0ac1F7c1E67Fa
We are currently working on smart router, which will allow users to buy or sell call and put tokens using any listed tokens on Uniswap. This is an important feature because we do not need to provide two underlying assets as required in Antimatter V1. In addition, since we made logical changes to product, we are also changing the interaction with frontend.
Thanks for your support throughout this whole time. We have solved the most difficult puzzle.