Discussion proposal: expand utility for $1INCH token by leveraging OPIUM protocol

1inch_and_opium01

Greetings 1Inch community.
Let me propose to discuss the idea about new extra utility for 1INCH token.

I am active participant in several defi protocols governance and there is one of my favorite - Opium protocol , which allow to anybody create decentralized derivatives.

In fact 1Inch & Opium already in some kind of “relations” :slight_smile: as there is even two native pools with $OPIUM governance token on 1inch platform:

So, I propose to expand this “relations” further… and leverage some of OPIUM great mechanics to 1INCH token!

1inch_and_opium02

To be honest there is plenty of possibilities out there… but I think we can start with simple weekly “Turbo” on $1INCH token. Under the hood “Turbo” is just a vanilla options but with simplified and minimalistic UI.

What is the benefits to 1inch community? :

  • For overall 1inch eco this expand utility feature.
  • For $1INCH long term holders this is an opportunity to extract more value from their holdings.
  • For traders\speculators this is an opportunity to extract more value from their skills.
  • For advanced investors this is a tool to hedge risks against $1INCH price depreciation.

More of that, I talked to Opium team recently about this idea and they are approved that it can be done easily (they even can facilitate it) but only if 1inch community really interested in such instrument .

That’s why I started this thread. Please share your thoughts on that idea…

Related info:

*ps: *
*below the links to source footages which I used for fun to produce these gifs :slight_smile: *
link1
link2

6 Likes

I’ ve read the links I love the idea. this could be implemented to 1inch staking too

$OPIUM Staking Pool

If you own $OPIUM tokens, you can stake them into the $OPIUM Call Option pool. The pool is issuing call options, effectively having a so-called covered call position. Pooled funds are used to provide coverage for the option buyers. A seller benefits when the underlying asset decreases in price as they receive the premium from the buyer and can retain their tokens. It is a covered position with hedged risks, popular among asset holders in traditional finance — you agree to redistribute an upside of the future profits (if any) in return for immediate income from premiums.

Staking $OPIUM gives you a covered position with hedged risks, popular among asset holders in traditional finance — you agree to share an upside of the future profits (if any) in return for immediate income from premiums.

If the price of the OPIUM token is above the strike price by the end of the option period, part of the pooled funds will be used for payouts to option buyers.

2 Likes

exxactly yes. Such stake pool is good for long term holders. Especially on bear\flat market.
And short term speculators should have fun to play with this toy as well :wink:

2 Likes

Heck! What stop us from extend my original proposal even further! - in theory 1inch protocol can leverage ANY options products on the market by aggregating them similar to what 1inch already did with AMM DEX markets…
So, you dont even have to go anywhere out from the 1inch website. If these Options pools will be introduced in 1inch website UI.

As @Shadow mention in his message above - “coverage call” pool is a great start in this new direction. As it utilize $1inch liquidity by providing long term holders with steady income on their asset and same time gives short term traders deep liquidity to play with Call options on $1inch.

Aand btw! Opium team already added Turbo on $1INCH, finally. :heart_eyes_cat:
check this out here: Opium Finance

4 Likes

What stop us from extend my original proposal even further! - in theory 1inch protocol can leverage ANY options products on the market by aggregating them similar to what 1inch already did with AMM DEX markets…

I like this idea a lot! It adds a whole new functionality to the 1inch Network – the Network would be aggregating derivatives!

Liquidity across the different derivative dApps is very fractured right now, so this would be a huge market niche that 1inch would be able to capture.


Proposals should be focused on a single idea, so I’d vote we focused on the derivative aggregation as the Phase-2 proposal (then we can do the TURBO treasury strategy later).

4 Likes

You got my total support, nice one.

1 Like

This idea was already coined but h8 to see nobody knows :disappointed_relieved: shows how deep these ideas get buried under [ Discussion Panel ] Making 1inch Tokens ULTRA - USEFUL! - #129 by Genkai.Shogun

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Yeah, there were a bunch of good ideas in that thread that got buried (there were too many good conversations going on at once) – that’s one of the main reasons why we always suggest breaking popular good ideas into standalone threads. It is far easier to get ideas through the governance process if people can track the discussion.

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It was like a bucket list . You don’t want ideas to get spammed .

BTW i think it’s your Fault because mods should have disabled the time limit option in the forum on main post which i think is 2 months by default . REMOVE IT

HERE’s how you can do it -

https://meta.discourse.org/t/allow-user-to-edit-post-that-is-older-than-the-allowed-edit-time/43151

1 Like

BTW i think it’s your Fault because mods should have disabled the time limit option in the forum on main post which i think is 2 months by default . REMOVE IT

The time limit for editing posts and comments was removed in late September (I just double checked the settings again). Is this feature not working for you?

2 Likes