Which LPs are you referring to here? Do you mean the seller would want to rebalance if the buyer is ITM? The seller can close their position if they want to and sell at another strike - is that what you mean?
@@cryptojesperk when the options are ITM, the LP wouldn't earn any trading fees since their Univ3 position will be out of range. Why would they keep it out of range for the sake of the borrower?
@@onemonsterceo Got it. Yes, this is something we have planned to test out during the beta launch. We can go with either design, but no-rate is what we believe will work as of now. Btw. the seller has a way out via force exercising the buyer's position. We are going to test out how this works. We will incorporate aa more thorough answer into our docs.
@@cryptojesperk I mean, we have to see how this plays out but people who LP on UniV3 are usually the smartest players in crypto who actively adjust their position. Less sophisticated LPs use something like Gamma protocol which also actively adjusts the position to maximize trading fees. If force exercising is available, force exercising will be the norm.
@@onemonsterceo Yes, exactly. That's why only being able to sell short puts (current situation) is not great and ofc they know that. Panoptic enables buying and selling puts and calls (much broader market). And yes, actively managing your position (just like now) is a good idea in some cases!
A nice concept, although there needs to be more assets to write options contracts against. At the moment it's just USDC/WMATIC
super cool
this is so cool!!
Nice, thanks
Thanks for watching! 🙏
If you are from C4, link up💀
Wouldn't the LPs want to rebalance while the option buyers are ITM?
Which LPs are you referring to here? Do you mean the seller would want to rebalance if the buyer is ITM? The seller can close their position if they want to and sell at another strike - is that what you mean?
@@cryptojesperk when the options are ITM, the LP wouldn't earn any trading fees since their Univ3 position will be out of range. Why would they keep it out of range for the sake of the borrower?
@@onemonsterceo Got it.
Yes, this is something we have planned to test out during the beta launch. We can go with either design, but no-rate is what we believe will work as of now.
Btw. the seller has a way out via force exercising the buyer's position.
We are going to test out how this works.
We will incorporate aa more thorough answer into our docs.
@@cryptojesperk I mean, we have to see how this plays out but people who LP on UniV3 are usually the smartest players in crypto who actively adjust their position. Less sophisticated LPs use something like Gamma protocol which also actively adjusts the position to maximize trading fees. If force exercising is available, force exercising will be the norm.
@@onemonsterceo Yes, exactly. That's why only being able to sell short puts (current situation) is not great and ofc they know that. Panoptic enables buying and selling puts and calls (much broader market). And yes, actively managing your position (just like now) is a good idea in some cases!