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Description
Cryptocurrency options based on the parimutuel betting with fixed odds pricing model, guaranteed to payout in any market scenario. Option prices are calculated through off-chain and do not require specialized market makers, ensuring low option prices upon issue.
Key features
Leverage up to 20:1
Limited risk when the market moves in the opposite direction
The ability to profit from falling and stagnant markets
Long-term portfolio insurance
Risk management for market makers
Tokenization of issued options
Instant profit-taking in the secondary market
Problem
Despite the emergence of platforms and services that allow trading derivatives for cryptocurrencies and tokenized assets, none of them is able to provide the market with a model that would suit all participants, both willing to buy or sell options. This is due to the impossibility of hedging risks by option sellers, which in turn generates extremely high premiums that buyers have no interest for.
Solution
DYMMAX - is a unique platform designed to solve this problem, taking into account the cryptocurrency market specifics, as well as the concept of distribution. A set of option pricing strategies is implemented at its basis, with pricing based on the parimutuel betting with fixed odds model.
Principle
Taking into account the specifics of a new pricing model for the market, a platform was created for the initial issue of option contracts based on an automatically prolonged auction. The model mentioned above implies floating premiums during the collection of orders, and therefore, an auction is created, which determines the ATM strike, as well as all the options premiums for the submitted limit orders. After calculating the premiums, the order is executed or rejected, and the result of the execution is the issue of ERC20 tokens for the option contract, which can circulate on the secondary market.
Target consumers:
Cryptocurrency traders;
Long-term investors (hedgers);
Miners;
Cryptocurrency funds.
3 types of strategies:
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Bull Spread - the strategy designed for asset growth, allowing to make a profit in a growing market and limit losses in a falling market;
Iron Fly - the strategy of selling volatility, or in other words, extracting profit from market stagnation, when the price fluctuates in a range;
Bear Spread - the equivalent of a short position, but without the need to pay interest rates, making a profit in a falling market, limiting losses in case of growth.
Platform
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Automatically prolonged auction.
Displaying bids in the current auction.
Option constructor for visualizing profit and risk.
DMX token
DMX is the governance token of the Dymmax platform. It is designed to ensure the stability and decentralization of the Dymmax system, and opens the following opportunities to its holders:
Voting to add new options series.
Cashback from trading commissions.
Payment for services of the Dymmax ecosystem and partners.
Single token share increases due to regular token burnings.
Voting on the Dymmax roadmap and priorities.
Distribution
The maximum emission of the DMX token will be 10M that will be distributed as follows:
%
DMX tokens
Where
Vesting
21%
2 100 000
Public sale
Instant
7%
700 000
Community airdrops
Within a year after IEO
15%
1 500 000
Ecosystem & partners
Within a year after IEO
15%
1 500 000
Seed sale
1 year after IEO
12%
1 200 000
Staking
25,000 per month for 4 years
30%
3 000 000
Foundation
50,000 per month for 5 years
