🚀Announcing Our Development Plan: Squart (tentative) Set to Launch by End of February 2023!

What is “Squart?”

We released Perpetual Option in 2022. Now, we’re excited to announce the release of our new product, “Squart (tentative)” in 2023! You might be familiar with Squeeth offered by Opyn, which is a beautifully designed ERC20 token that is linked to ETH squared. In Predy V2, we offered ETH squared as an Automated Market Maker (AMM). But in the next version (let’s call it V3.2), we’ll be offering Perpetual trading of the power of 0.5. We want to pay homage to Squeeth by naming our new product Squart, a shorthand for Squeeth-quarter.

What is Perpetual Squart? It would look something like this graph.

(From https://www.geogebra.org/u/mrneilsen)

Didn’t you see this somewhere..? looking familiar to you?

Dive Deep into Squart 💡

Have you noticed something familiar in the graph we presented?

Yes, it looks similar to what’s listed as Short Put. In one of our previous blogs, we have explained that Short Put in Predy V3 refers to Leveraged Uniswap V3 LP. Let’s take a look at the formula that represents the value of Uniswap V3 LP.

(From Blog “Comparing Predy V3 to Uniswap V3: How much does it improve LP Capital Efficiency?”

Yes, it includes √p( Squart). The state of Uniswap V3 LP is very close to Squart. By carefully examining the formula, you’ll see that by Longing √p (Squart) and Shorting Perpetual ETH, you can create the state of Uniswap V3 LP.

Why Offer Squart?

Let’s be honest, when Predy V3 was launched, we felt a certain level of satisfaction. We still have a confidence in this satisfaction. We still believe that Levered Uniswap V3 LP, as well as options trading and strategies combined with Lending Pool, are useful products.

On the other hand, there was a sense of discomfort. It was the Strike Price of the Options. Over time, that discomfort became a problem as the price of ETH frequently changed, requiring us to have Uniswap V3 LP as a stock behind the UI’s Strike Price. As a result, we couldn’t keep up with demand for what we were displaying.

Squart was considered as a way to improve this. With our experience with Predy and our ability to create Squeeth using AMM for trading, we combined our experience with Predy V3 and using Uniswap V3 LP to make Squart possible.

As shown in the figure below, the stock becomes higher and capital is not dispersed, dramatically improving AMM’s capital efficiency. 💻💰

Get ready! 🎉

Our next release includes:

• Perpetual ETH, Perpetual Squart ETH (Portfolio Margin)
• Gamma Trade (Isolated Margin with Hedge or no Hedge)
• wBTC too!
• Lending Pool for ETH, BTC, USDC

Some of you may be surprised by Isolated Margin and BTC. Especially with regards to Isolated Margin, there have been user requests and we would like to improve in this area. In fact, it would be great if we could settle positions through limit orders, but on-chain transactions make it difficult to do so. Hence, we will implement Isolated Margin as a solution. Stay tuned! Of course, until the transition, the current V3 will be fully operational. We have a lot of confidence in Predy V3, but it is not preferable for liquidity to be dispersed without sufficient funds. (When the protocol develops enough, V3 will be able to revive enough).

So, look forward to the end of the month. Thank you for using Predy V3.