Introducing Power Perpetuals

  • Underlying price goes up, longs make profits while shorts bear losses.
  • Underlying price goes down, longs bear losses while shorts make profits.
  • Underlying price stays stable, shorts earn funding fees while longs are paying them.
  • I(S)=S for perpetual futures
  • I(S)= max(S-K,0) for everlasting calls
  • I(S)=max(K-S,0) for everlasting puts
  • I(S)=Sᵖ for power perpetuals of order p
  • BTCUSD goes up to 45000, mBTC^2 goes up to 2064594 (a trading result of the market): A long contract will make a profit of 2,064,594 –1,631,284 = 433,310. Accordingly, a short contract will bear a loss of the same amount.
  • BTCUSD goes down to 35000, mBTC^2 goes down to 1248953 (a trading result of the market): A long contract will make a loss of 1,248,952 –1,631,284 = -382,331. Accordingly, a short contract will make a profit of 382331.

The Greeks of Powers

  • P: the price of the power
  • S: the price of the underlying
  • T: the funding period. T=1week in our implementation.
  • h=r+σ²/2, with r the risk-free interest rate and σ the volatility

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Deri Protocol

Deri Protocol

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Deri Protocol = (Perpetual Futures + Everlasting Options) x Decentralized.