Introducing Predy — the First-Ever Portfolio Margin Solution That Hedges against Impermanent Losses

Predy V1 — Learning from our mistakes

Existing issues with on-chain options trading

  1. The computational cost of BSM is enormous.
  2. Gas fees for transactions with a maturity date and strike price are huge.

Cutting the maturity date — the Everlasting Options paper

The Predy Approach: Portfolio Margin on DeFi

  • Isolated margin and
  • Cross margin

Types of Predy contracts

  1. Long power perpetuals (squeeths) which give the user a leveraged position with an unlimited upside and limited downside when compared to 2X leveraged positions.
  2. Automatic combination of Short Perpetual ETH offset by a Long Perpetual ETH² to hedge against impermanent losses (ILs). This is what allows Predy to provide a stable APY because impermanent losses are effectively nullified, allowing the user to cash in on the transaction fees regardless of how much the underlying asset price fluctuates.
  3. Similar automatic combination of Long Perpetual ETH and Short Perpetual ETH² to earn APY, similar to Opyn’s “crab strategy.”

Final audit completed, launch date set for April 2022

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