{"id":10261,"date":"2021-06-18T22:36:19","date_gmt":"2021-06-18T19:36:19","guid":{"rendered":"https:\/\/esatoshi.club\/?p=10261"},"modified":"2021-06-18T22:36:22","modified_gmt":"2021-06-18T19:36:22","slug":"dopex-io-x-satoshi-club-ama-recap-from-16th-of-june","status":"publish","type":"post","link":"https:\/\/satoshi-club.esipick.com\/index.php\/2021\/06\/18\/dopex-io-x-satoshi-club-ama-recap-from-16th-of-june\/","title":{"rendered":"Dopex.io x Satoshi Club AMA Recap from 16th of June"},"content":{"rendered":"\n

Hello, Satoshi clubbers! Another AMA took place in Satoshi Club and we would like to introduce to you the AMA session with our friends from Dopex.io<\/a> and our guest was @tztokchad and @witherblock – representatives of Dopex.io. The AMA took place on 16th of June.<\/a><\/p>\n\n\n\n

The total reward pool was 500$ and has been split into 3 parts.<\/p>\n\n\n\n

In this AMA Recap, we will try to summarise the most interesting points for you.<\/p>\n\n\n\n

Part 1 \u2014 introduction and questions from the Website<\/h2>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nHello, dear Satoshi Club community! We are pleased to announce AMA with Dopex.<\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nToday\u2019s guests are @tztokchad @witherblock! Welcome! 😁<\/p>\n\n\n\n

tz:<\/strong>
Hey, glad to be here.<\/p>\n\n\n\n

witherblock:<\/strong>
\nHello!<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nHello and welcome to Satoshi Club, @tztokchad @witherblock!😊<\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nIt’s a great pleasure to have you here at Satoshi Club 😁<\/p>\n\n\n\n

How’s your day going? 🙂<\/p>\n\n\n\n

tz:<\/strong>
Thank you, likewise<\/p>\n\n\n\n

It’s going good, been looking forward to the AMA today.<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nWe are also very excited about the upcoming AMA.😊<\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nI feel I can speak for the whole Satoshi Community when I write that we’re all\neager to know more about Dopex 🔥<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nYes! Let’s start!
\nIntroduce yourself please. How did you get to be involved in crypto &\nDopex? Tell us please about your position in Dopex?<\/p>\n\n\n\n

tz:<\/strong>
That’s awesome, we’re here to help you learn more about the project<\/p>\n\n\n\n

Dopex*<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nDopex. By the way, what does that mean?<\/p>\n\n\n\n

tz:<\/strong>
I’m the founder of dopex and have been building it over a few iterations internally for a couple of years originally. I’ve been in the crypto space since late 2016 as a dev and investor. I did get exposure to bitcoin initially in 2012 though<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\n😉Tell us about the history of Dopex<\/p>\n\n\n\n

tz:<\/strong>
Dopex is an acronym for Decentralized Options Exchange<\/p>\n\n\n\n

witherblock:<\/strong>
I’m witherblock:<\/strong> the lead dev at Dopex. Got involved in crypto a couple of years back thanks to @tztokchad and then Dopex again thanks to @tztokchad.<\/p>\n\n\n\n

Gold Rocket | Satoshi Club:<\/strong>
This is a very original concept.👍<\/p>\n\n\n\n

What is the essence of Dopex?<\/p>\n\n\n\n

Paul Mont | Satoshi Club:<\/strong>
So you guys knew each other well before joining forces for the Dopex project. Did you know each other in real life as well?<\/p>\n\n\n\n

tz:<\/strong>
I started building it a couple of years ago and it’s gone through 3 iterations until now. The current one internally is technically a v3. V1 would have been more comparable to opyn, while v2 to hegic. V3 was a product of learning the drawbacks of the previous models and building a solution that attempts to nullify those issues and most importantly create a fair pricing model which’s technically a complex problem that doesnt have a one size fits all solution even in the tradfi world<\/p>\n\n\n\n

Gold Rocket | Satoshi Club:<\/strong>
This is a hard-won and beloved child 😉<\/p>\n\n\n\n

tz:<\/strong>
\n@witherblock came on board for v3 and has been doing the bulk of the\ndevelopment and we have been figuring out the architecture together to deliver\na platform that accounts for fair pricing, fast transactions, minimized losses\nfor liquidity providers via our rebate token mechanism, composability and a few\nother features that you could read up in our docs @ https:\/\/docs.dopex.io<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nWhat plans do you have for the future? And what can we expect from Dopex?<\/p>\n\n\n\n

witherblock:<\/strong>
Yeah, sort of.<\/p>\n\n\n\n

tz:<\/strong>
Yes, there’s been a lot of thought that’s gone into it – not just with the team, but with our early investors and delegates as well, such as tetranode, defigod, orthogonal trading etc<\/p>\n\n\n\n

You could see the full list on our page @ https:\/\/dopex.io<\/p>\n\n\n\n

Paul Mont | Satoshi Club:<\/strong>
It’s quite apparent you’ve tried to holistically build a unique platform, also drawing on some of the most renowned protocols in the crypto space.<\/p>\n\n\n\n

At the same time, trying to build something that’s one-of-a-kind in its concept\/vision.<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nAlso we would like to know about your team. Who is on the project team core?<\/p>\n\n\n\n

tz:<\/strong>
It aims to solve all the drawbacks with options protocols and get a significant chunk of the flow deribit and tradeparadigm have at the moment. They do over 80% of all crypto options volume and have found product market fit. Our goal is to build a platform that allows option liquidity providers to minimize their losses in weeks of high volatility and purchasers to get the best deal possible. All in a game theoretical manner powered by our token incentives<\/p>\n\n\n\n

Yes, that’s true. We wouldn’t spend such a large amount of time iterating on it if that werent the case.<\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nBrilliant, thank you very much for the thorough introduction 🔥<\/p>\n\n\n\n

tz:<\/strong>
In the core dev team, we have 5 developers,<\/p>\n\n\n\n

witherblock
\npsytama
\ngg
\ncryptoguru and
\nme<\/p>\n\n\n\n

We are all full stack devs with considerable experience in\nsolidity<\/p>\n\n\n\n

We are always looking for good developers however and if you’re interested, please dm me on twitter @tztokchad. We pay well.<\/p>\n\n\n\n

Paul Mont | Satoshi Club:<\/strong>
This is a great opportunity Satoshi Club 🔥<\/p>\n\n\n\n

Gold Rocket | Satoshi Club:<\/strong>
Satoshi Clubbers! do not miss the opportunity to be realized in a good project🚀<\/p>\n\n\n\n

Is your team anonymous? If so, do you ever plan to go public?<\/p>\n\n\n\n

tz:<\/strong>
Alongside the devs we also are partners with DCV, DefiChadVentures who are a group with experienced and respected members within the defi community for help and technical advice<\/p>\n\n\n\n

We are anonymous and dont have plans to go public considering derivatives are a tricky topic with regulations<\/p>\n\n\n\n

witherblock:<\/strong>
We also have.<\/p>\n\n\n\n

ohic
\npolymmo<\/p>\n\n\n\n

For our beautiful designs and <\/p>\n\n\n\n

mariodigital_io
\nxenes1s
\n0x_bella
\nCorporealFeast
\nliquideshun<\/p>\n\n\n\n

For our community!<\/p>\n\n\n\n

Gold Rocket | Satoshi Club:<\/strong>
Thanks for the answer. Another small question from me personally 😁<\/p>\n\n\n\n

What event influenced the project the most?<\/p>\n\n\n\n

Yes, I also wanted to notice the designer’s work was done at the highest level 👍<\/p>\n\n\n\n

Paul Mont | Satoshi Club:<\/strong>
I concur, I also truly enjoyed the website concept 👏👏<\/p>\n\n\n\n

tz:<\/strong>
\nActually trading on deribit and being frustrated with liquidity, margin\nrequirements, kyc and the platform being down at times of high volatility. And\nafter that it would be the current option dex ecosystem not being liquid enough\nyet. I think there’s space for more than one platform right now, but that might\nchange quickly in the future if one does find product market fit<\/p>\n\n\n\n

👆 Thats a reply to this question<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\n@tztokchad @witherblock Thanks for the introduction, we will have a question\nselected for the Part 1. ready to start?<\/p>\n\n\n\n

Gotcha 😀<\/p>\n\n\n\n

tz:<\/strong>
Sure.<\/p>\n\n\n\n

witherblock:<\/strong>
Fire away.<\/p>\n\n\n\n

Q1 from Telegram user @Johana0012
<\/em>The Dopex token sale is June 21st. Interested participants will deposit ETH into the token sale contract at any time during a 3-day period and will receive DPX in return. How can I minimize my risks using the Dopex protocol? How can I earn Dopex? How many tokens do you currently have available in your protocol? What is the double model that Dopex presents? What is the function of each of the tokens?<\/strong><\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nA question that actually tackles many fronts 🙂<\/p>\n\n\n\n

tz:<\/strong>
Dopex has a unique 2 token model. We have a governance token, DPX and a rebate token, rDPX. The rebate token is issued after weekly\/monthly “epochs” in option pools, only if pool liquidity providers end the epoch with a net loss. They are issued at a % of the loss, this rebate % is determined by governance – which means that you would need dpx to vote on changes on this. DPX would have a total supply of 500k while rDPX doesnt have supply cap, however initially rDPX would most likely be more scarce than DPX until the platform is live<\/p>\n\n\n\n

Is that clear or do we need to elaborate further?<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nBy the way, can you please share with us the Dopex tokenomics?<\/p>\n\n\n\n

It seems to me that this is enough, because the next question continues this topic.<\/p>\n\n\n\n

witherblock:<\/strong>
It’s a bit difficult to explain here in one reply so I’ll leave the detailed page explaining everything about the tokenomics – https:\/\/docs.dopex.io\/tokenomics<\/a><\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nSo rDPX is distributed after users have incurred a loss. What are the starting\nissuing percentages?<\/p>\n\n\n\n

tz:<\/strong>
Initially, its 30%. But that would be updated based on how it performs in prod, using governance votes if necessary<\/p>\n\n\n\n

Gold Rocket | Satoshi Club:<\/strong>
Thanks for sharing ☺️<\/p>\n\n\n\n

Paul Mont | Satoshi Club:<\/strong>
Also at which time intervals\/epochs do these distributions occur?<\/p>\n\n\n\n

Are the epochs also a governance topic on which DPX holders can cast their vote on?<\/p>\n\n\n\n

witherblock:<\/strong>
We have weekly and monthly pools at the moment so the distributions occur at the end of every week for the weekly pools and at the end of every month in the monthly pools.<\/p>\n\n\n\n

tz:<\/strong>
Initially no, they will be weekly and monthly. Over time, we will introduce quarterly pools and possibly yearly. That would require governance votes to allocate dpx incentives to liquidity providers.<\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nThank you very much for the clear answers guys, I’m pretty sure @Johana0012\nwill be satisfied by your replies 😉<\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nLet’s hop onto the next question, shall we?<\/p>\n\n\n\n

tz:<\/strong>
Sure.<\/p>\n\n\n\n

Q2 from Telegram User @andrey_seleznov
<\/em> Hi Dopex!
As partially explained in the previous question I would like to enquire more about Dopex\u2019s dual token model. I read that Dopex plans to use DPX as the limited supply governance token that accrues fees and revenue from pools, vaults and wrappers. And rDPX as the rebate token for options writers that can be used to mint synthetic assets such as indices, stocks etc. Why did you decide to go with a more complex dual token model? What benefits does it bring compared to a single token model used by some exchanges? Thank you!<\/strong><\/p>\n\n\n\n

tz:<\/strong>
We always wanted to have rebates for liquidity providers considering the tail risk with writing options. One week in a year could technically wipe a large % of gains for writers, a 30% rebate could result in over a 50% increase in pnl based on the last backtests that we had done. <\/p>\n\n\n\n

So initially dpx was going to be the rebate token as well,\nhowever we decided to change it based on advice from defigod and tetranode\nconsidering nobody would want to hold an asset without a supply cap and use it\nfor governance at the same time considering it would lead to long term\nscalability issues and unpredictability at a protocol level<\/p>\n\n\n\n

With the 2 token model we were able to separate both the functions and simplify our governance and fee collection into one token, while having the other for purely rebates, synth and margin collateral, liquidity mining and more features in the future<\/p>\n\n\n\n

Paul Mont | Satoshi Club:<\/strong>
The pros of a strategic decision like this one is palpable. It just feels right, your explanation is a logical and brilliant one. Thank you very much 👍<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nit really makes sense<\/p>\n\n\n\n

tz:<\/strong>
Thank you.<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nCan we proceed. Or you want to add something?<\/p>\n\n\n\n

tz:<\/strong>
We can proceed.<\/p>\n\n\n\n

Q3 from Telegram user @JonahApagu
<\/em>Dopex is said to be implementing an innovative and state-of-the-art option pricing model that replicates volatility smiles. And of the benefits of this model is that users get to minimize their losses and maximize gains.. so how does this option pricing model work, what features does it have. How is this model of yours a fair pricing model\u2026 and how is this different or unique from the pricing models used in traditional Options platforms.<\/p>\n\n\n\n

tz:<\/strong>
\nWe have a plug and play pricing model that can change per pool. Initially we\nhad decided to go with a closed form formula that would utillize only rv.\nEventually, based on advice from orthogonal trading, we switched to a delegate\nmodel – where dopex has 5 delegates quoting on multipliers for each option\npricing model to come up with a fair price. The delegates are initially 5\ntrading firms that do billions of dollars in options volume every quarter. They\nare incentivized to quote fair pricing every second since it would increase TVL\nin dopex which consequently results in a better dpx price and larger liquidity\nallowing them to use dopex option pools in the long run as their main source of\nliquidity.<\/p>\n\n\n\n

Initially we would use the SVI model to replicate volatility\nsurfaces for btc and eth using deribit’s option chain as a baseline. However\nfor defi blue chips and other highly liquid alts with no option chain at the\nmoment we would use other formulas that would result in fair pricing – it will\nbe trial and error initially, however liquidity providers would be incentivized\nwith dpx to ensure they make a good return<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\nSufficiently comprehensive answer! Thank you so much!<\/p>\n\n\n\n

tz:<\/strong>
\nOur goal is always to enable retail to add safe liquidity while offering pros\nthat liquidity to arb, create positions etc.<\/p>\n\n\n\n

No problem<\/p>\n\n\n\n

Paul Mont | Satoshi Club:<\/strong>
Yes, it seems a win-win solution, that works in the direction of fair pricing, with positive spill-overs for all stakeholders involved.<\/p>\n\n\n\n

Thanks again, questions number 4 incoming 🙂 Ready?<\/p>\n\n\n\n

tz:<\/strong>
Yes.<\/p>\n\n\n\n

Q4 from Telegram user @pixma00
<\/em>Underwriters of Dopex group options are regularly exposed to the risk of accumulated losses during periods of extreme volatility. To subvert this risk, what protection strategy is Dopex applying so that its investors are not so affected by market volatility? What is the refund mechanism? How are option writers compensated? What is the strategy applied to generate passive income to generate options issues?<\/strong><\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nThis has been partially answered earlier when we touched upon the dual token\nmodel, but maybe you can add more details to address with even more depth\n@pixma00’s question 🙂<\/p>\n\n\n\n

tz:<\/strong>
\nWe have covered this in the previous answers, but it would be the rebate token\nbeing issued at a % of losses after every epoch. The rebate % would vary based\non risk factors for each pool. This % would also be updatable via governance,\nleaving a need for larger stake holders to always keep their dpx for this\npurpose. <\/p>\n\n\n\n

The strategy for passive income is simply locking your\nbase\/quote assets in a dopex option pool initially. It auto rolls over your\nassets at the end of an epoch to the next one allowing liquidity providers to\nnever need to manually adjust positions unless required<\/p>\n\n\n\n

witherblock:<\/strong>
Also to add to this option writers receive DPX emissions every epoch.<\/p>\n\n\n\n

This is part of the 30% (of the total supply of DPX) allocated to platform rewards<\/p>\n\n\n\n

Paul Mont | Satoshi Club:<\/strong>
So there are rebates (rDPX) and rewards. What about Call and Action rewards? Could you please spend a word to describe the difference between the two?<\/p>\n\n\n\n

tz:<\/strong>
Yes, all liquidity providers receive this as an incentive at the end of every epoch. I didn’t mention this in the original post<\/p>\n\n\n\n

Call rewards are static rewards distributed to users (bots) who call certain functions on our contracts.<\/p>\n\n\n\n

Action rewards are distributed as liquidity incentives for\nliquidity providers\/option writers<\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nThank you very much, I felt it was significant to make the distinction. Great\nanswers!<\/p>\n\n\n\n

Gold Rocket | Satoshi\nClub:<\/strong>
\ngreat answers! Thank you😊<\/p>\n\n\n\n

tz:<\/strong>
No problem.<\/p>\n\n\n\n

Paul Mont | Satoshi\nClub:<\/strong>
\nNext question’s topic is about Dopex’s architecture.<\/p>\n\n\n\n

Q5 from Telegram User @victorogb
<\/em> The Dopex protocol makes use of a combination of several existing protocols within it\u2019s architecture. The notable ones are those of the Uniswap, Chainlink and UMA protocols. These protocols are deployed to serve specific purposes within the Dopex architecture. Consequently, why would Dopex choose to combine these different protocols, what are the specific functions of the listed protocol types within the Dopex architecture, and how does a combination of the different protocol models affect the general operations and function of it\u2019s options pool?<\/strong><\/p>\n\n\n\n

witherblock:<\/strong>
We use uniswap to roll over premiums collected from option purchases and re-add liquidity into the option pools.<\/p>\n\n\n\n

Chainlink is used for pricing oracles as we need futures\npricing for an asset to accurately calculate the option price for it.<\/p>\n\n\n\n

UMA is used to generate synths from rDPX. <\/p>\n\n\n\n

Our platform is designed to be interoperable with other protocols\nin order for future extensibility and an innovative roadmap we have ahead of\nus.<\/p>\n\n\n\n

Paul Mont | Satoshi Club:<\/strong>
After the June 21st sale event, what is coming next in your roadmap? What would you deem the most important event to come for Dopex in this 2021?<\/p>\n\n\n\n

tz:<\/strong>
The roadmap post public sale is <\/p>\n\n\n\n