Thetanuts Finance: Kicking Off Phase II of the v3 Incentivized Alpha
Today, we’re excited to kick off Phase II of the Thetanuts Finance v3 Incentivized Alpha — with Phase II focusing on introducing concepts for Liquidity Providers on Thetanuts Finance v3. With the launch of Phase II, we are also proud to release the Thetanuts Finance v3 Lite Mode — enabling users to easily express their bullish or bearish bias using on-chain options.
Measuring Success of the v3 Incentivized Alpha
In October, we announced the Thetanuts Finance v3 Upgrade — explaining the need to move toward becoming a decentralized on-chain options protocol, while also opening applications for the v3 Incentivized Alpha. To date, we have received >70,000 applications to join the v3 Incentivized Alpha — of which we have currently whitelisted ~75% of addresses to use the v3 Incentivized Alpha.
Phase I of the v3 Incentivized Alpha focused mainly on Traders — introducing users to basic concepts in Thetanuts Finance v3 including Long, Short, Close, and Boost. We saw strong interest and success in Phase I, with some of our metrics reaching record highs.
- TVL: >$10.4mm
- Trading Volume: >$5.7mm
- MAU: >1,600
For more detailed information on our metrics for Thetanuts Finance v3, please visit our Dune here.
Kicking off Phase II of the v3 Incentivized Alpha
With users of Thetanuts Finance v3 now familiar with our new Trading Interface, we believe that it is time to launch Phase II of the v3 Incentivized Alpha — where we will focus on Liquidity Providers. Phase II seeks to introduce users to new liquidity-related features, particularly via the Add Liquidity Module and expansion of Lending Market capabilities.
Add Liquidity Module
The Add Liquidity Module will be the cornerstone for liquidity-related features on Thetanuts Finance v3 — allowing users to gain exposure to all three components of the Thetanuts Finance v3 ecosystem.
If a user has a bearish bias, a user can deposit $XYZ into the Add Liquidity Module.
- Part of the $XYZ will be deposited into the Basic Vault to generate $XYZ-C (Short Call Basic Vault LP Token), with $XYZ-C being Boosted in the Lending Market.
- Part of the $XYZ will be deposited into the $XYZ/$XYZ-C liquidity pool on Uniswap v3.
If a user has a bullish bias, a user can deposit $USDC into the Add Liquidity Module.
- Part of the $USDC will be deposited into the Basic Vault to generate $XYZ-P (Short Put Basic Vault LP Token), with $XYZ-P being Boosted in the Lending Market.
- Part of the $USDC will be deposited into the $XYZ-P/$USDC liquidity pool on Uniswap v3.
In both cases, the user would have access to up to five yields on Thetanuts Finance v3:
- Option Premiums from Basic Vaults
- Lending Interest from Lending Market
- Trading Fees from AMM
- Potential $NUTS Token Incentives (Future)
- Potential Additional Token Incentives (Future)
Expansion of Lending Market Capabilities
Boost is a feature that allows users to deposit their Basic Vault LP Tokens into the Lending Market, with this feature being available since Phase I of the v3 Incentivized Alpha. In Phase II, users will now be able to borrow against their Lending Market isolated pool positions — where they will be able to borrow $XYZ or $USDC depending on the pool that they have deposited into. This enables users to achieve greater capital efficiency on their short position trading collateral, and allowing them to use borrowed capital from the Lending Market to interact with other components of the Thetanuts Finance v3 ecosystem.
Launch of Thetanuts Finance v3 Lite Mode
Recognizing that some users may want an easy-to-navigate options trading experience, we’re excited to release the Thetanuts Finance v3 Lite Mode — featuring an interface that allows users to easily express their bullish or bearish bias using options. Using Lite Mode, a user can easily go Long Call (if bullish) or Long Put (if bearish) — with any P&L automatically deposited into the user’s EOA address once the position has been closed. To try the Thetanuts Finance v3 Lite Mode, click on the “Lite” toggle on the Thetanuts Finance v3 Trading Interface.
Concluding Thoughts
As always, we’re excited to hear your feedback on the Thetanuts Finance v3 Upgrade — so please let us know how we can improve as we move toward v3 Mainnet. Stay tuned for updates and feel free to reach us on our Twitter and Discord!
Should you be interested in participating in the v3 Incentivised Alpha, please sign up here: https://forms.gle/xFHrWLYMp5LqoScGA.
