Psyoptions Thoughts

Hey everyone in the psyoptions community I wanted to float some things I have been thinking about and then work with the team and community to maybe put forward proposals or ways to do more. I love the solana community and I love the og projects in the space and want to see them flourish. So hopefully some things can stick and grow Psyoptions and for Solana usage in general. So here is some thinking out loud.

Cost of Markets

Please immediately correct me if I am wrong but it still costs approximately 4 Sol for each Serum Market. Some say more Sol. I have not played with adding new markets since Sol was sub $20 because the pain in spending SOL. If you can imagine a call market and a put market on a strike we are talking 8 Sol for someone to front. And you would usually want 4 or 5 strikes to have good coverage. Until there are the closable markets which I do not think have rolled out yet it is a pretty big hurdle in the growth of options.

If the closable market upgrade is retroactive it would be a huge benefit for Psyoptions to spin up more markets and then take care of the retroactive claims of the Sol from opening up more markets.

Alternatively if we could convene or vote on treasury usage to spin up markets it may be an alternative and a cost of doing business , and try to recoup the Sol through the trading fees of various strikes. It may not be a part of the capital raise plan but if could justify the spending there for the sake of the protocol would be good for the long term.

As the rest of my notes revolve around more markets. This is one of the biggest things for me. It is incredibly hard for individuals or small teams to drop $5k on a Quarterly set of markets. Would be nice to cover it or incentivize it.

Psyoptions Incentives

I am a big believer that Options on Solana can start to grab a lot of trading volume. Especially for the access to leverage in more bull market conditions. The market is going to get fairly competitive though looking around and it would be beneficial to start gaining more brand awareness of Psyoptions and long term invested users. Liquidity incentives as a marketing cost would make sense. And not just farm and dump tokens but how about the Options incentives that the team has been mentioning forever with the medium article.

As a farmer of the Atrix/Raydium Pools, I ask myself why the protocol that wanted to have projects issue options incentives, did not do the same themselves as the precedent for others. Instead you get to farm and dump PSY and in Atrix some SRM. I would have imagined something else along the lines of a Q3-Q4 call option of $0.36 , or some multiple of the IEO and last raise price, and something to hold on to as long term believers of the protocol. Or sell to someone else that would like to hold until in the money and worth executing.

It could still be implemented for the Liquidity Providers in a mixture (spot/options) and slowly over time transition from farm and dump incentives into Options farmers for the future.

In locking up some of the treasury into options I would like to see them also dropped as incentives for trading volume of options on the platform, or for coming in and trading new markets. It could also be given to some of the vault depositors so they could potentially over time ; Deposit in Vault → Earn Yield and OTM Options → Repeat and Collect yield over time and eventually use the yields earned to exercise the options. Maybe even change the strike based upon the continuity of capital. ex only 1 epoch , $1.20 less likely to hit by EOY, and if you have been in 5+ epochs then $0.40 , more likely to come into the money.

I think there is a lot of things to do with dropping Options on the users of an options platform. And for good precedents to get more solana projects to follow suit seeing the example of the difference of Options incentives versus the farm and dump. I know we have seen JFI and SLND. But there is room for much much more.

Additional Markets

The biggest limitation to all the following is the costs of markets. If we can figure that out (subsidize by backers or something) I think there are a lot of cool things to do.

First is just to cover some more of the main Crypto assets that have options elsewhere centralized. Copying some of the same strikes and dates. I would help make these markets and provide liquidity if I had the partner to engineer the MM. Some of the markets possible. BNB, LINK, AVAX, MATIC, and RenDoge for (doge).

These are quoted in a couple other fashions and have some volume already traded elsewhere. Although in general I think retail does not have much connection to any of them. Psyoptions could be the best retail accessible way to get these options.

I think that there are quite a lot of people that hold one or another of these assets. There has to be some potentially potent combo for allowing traders like DOGE holders to earn yields in vaults, and be able to manage their own exposure/ trading strategies in Psyoptions. Teaching them in short videos the steps to get DOGE from their cex through the REN bridge to Solana and then earn some 10-20% a year on those holdings with PsyFi. I know a lot of DOGE bag holders that now that they are hodlers, are wanting to learn “now what can they do with crypto”. Until POS in DOGE and CEX help with staking, it could be an opportunity to pull them out and into self custody and learn on Chain actions. I also imagine some of the Crypto desks that deal options in smaller caps, would help with the vaults.

Another interesting potential Options market opening is Stocks. I have not looked in awhile but it does seem like the Tokenized stock on Solana efforts through the company FTX uses for their stocks is at a stand still. And many of the synthetics promises of Solana native projects have not quite followed through. Yet there is a solution in the Luna ecosystem with the Mirror stocks which is doing quite well in volume and adoption. With a lot of the big names people want exposure to, available through their synthetic system.

AMZN, AAPL, TSLA, FB, GOOGL, NFLX, MSFT …. Etc.

What if there were vaults and options markets for these Mirrored assets. The tradfi use case is already there and people understand it. Taking it on chain in Psyoptions and with a Syth allows for any individual to access the same tools and exposure. I know this is a heavily scrutinized segment of crypto, but speaking for someone who lives in countries where financial system access is incredibly limited, this is one of the only ways anyone would ever have to get anything resembling stock investments. In the developing world financial tools are gated from you based upon your net-worth, and the barrier is high. And I see synths (or eventually the broad acceptance of tokenized stocks) on chain as the true thing that will allow many underprivileged persons of the developing world access the same investments as the upper class and first world. Especially where they are culturally risk adverse to Crypto volatility, but would understand digitized and synthetic Stocks.

I think there is so much potential for Psyoptions and the Psyfi vaults. There are definitely some cost prohibitive activities but hopefully there are ways to work things forward. Somewhat test in prod, launch new vaults and markets and see what can gain some traction and attention. Set Psyoptions up as the most complete defi option protocol. Most Crypto markets, most strategy vaults.

Would like to see what others think, have been busy in other areas and havent done everything I want to do inside Psyoptions. And if you are up for helping make a market maker hmu, unironicly need a dev to do something.

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Just to toss in a few more things that could help Psyoptions a lot as well.

  • Coingecko and CoinMarketCap accurate circulating supply and token details

I think that its hard for anyone to compare Psy to other platforms when the token details and some of the chart information has been corrupted. Coingecko still shows that is traded the all time low at .0000000002 something. So that PSY has “already pumped” 36,446,002%. Can imagine a new person coming in and not getting the correct picture of Psyoptions.

  • Pricing data in Phantom

I have not looked but should find a way to get the token price inside the data feeds for phantom so that you can see the assets value in your wallet. Just a simple user convenience that is always nice to have, and so that if you have a priced in balance it sorts it higher than tokens without balance or lower balance.

Hey @LifeCryptnautic

I think these are some really good thoughts and these topics have definitely been discussed amongst the team.

  • Cost of Market is something the core team has been actively discussing. I agree it would be a huge benefit for Psyoptions to spin up more markets and perhaps the DAO can cover the cost to spin these markets up.
  • Psyoptions incentives is something the DAO should absolutely iterate one. It would be cool if you were to propose some of these suggestions through the DAO when the governance infrastructure is complete. I believe it should be ready any day, if not already good to go.
  • The core team has already begun the process of addressing Coingecko and CoinMarketCap circulating supply and token details
  • We submitted the request to get phantom data displayed.
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Great read. These are valuable points and very valid to opportunity growth. I know a barrier for us currently is the closable markets and locking up lots of SOL to spin up markets. Once the changes go through however we should see a turn of events. All-in-all things we should continue pursing and developing.

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NICE !!! Progress :facepunch: