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Explaining all potentially unfamiliar terms
APR stands for annual percentage rate. However DeOrderBook instead uses vAPR, or variable Annual Percentage Rate, calculated as : (dollar-value of DOB rewards) / (dollar-value staked in pool)
In DeOrderBook, vAPR is earned:
- when yield farming
- by keeping HODL tokens
- by using HODL tokens to place limit orders
- by locking HODL tokens into SNIPER tokens
- when staking
$DOBto earn a share of platform fees.
vAPRs represent linear yield. The yields are paid in
$DOBtokens, for example if an APR says 100% it means that for every $1,000 worth of tokens staked, say 1000
$uHODL, $1,000 worth of
$DOBwill be paid out over the course of a year. The yield accumulates pro-rata per-block.
vAPRs in DeOrderBook are dynamic, meaning the rate is unstable and may change every block.
APY stands for annual percentage yield.
Although the term is often confused with APR, it is not the same. APYs represent compounded yield, whereas APRs represent linear yield. DeOrderBook only provides users with APRs.
In order to attain an APY with DeOrderBook's APRs, a user would need to sell their rewards for more of the underlying / base token. Although some users may want to do this, a better flow from the point-of-view of the protocol would be for users to stake their
Auctioning BULLET tokens is a feature that is not supported in v1 but is planned for further releases.
Every currency supported by DOB possesses its own BULLET token. At the time of writing, DOB supports
BULLET tokens come in a variety of classes. Each class consists of two parameters, a strike and an expiration. Expressed as follows:
For example, the BULLET issued for locking
$bHODLtokens, with a strike of $60,000 and expiry on 1-MAR-2022 will be known as $bBULLET60000–20220301. BULLET tokens of different classes are not fungible or directly interchangeable.
BULLET tokens are issued simultaneously with SNIPER tokens when HODL tokens are locked for optionality. BULLET tokens can be staked for
Once a user enters DeOrderBook, they start their journey by creating HODL tokens out of supported tokens such as
There are no creation fees collected when converting
$bHODL, as when converting
SNIPER and BULLET tokens, once staked in a pool, would continually generate rewards for users.
These rewards can be collected with or without exercise, with a 0.1% fee going to the platform.
The term 'DeOrder' is used to refer to orders placed on the platform, which are similar in concept to both limit orders and warrants. Users can place DeOrders once they have minted HODL tokens from their supported cryptocurrencies.
To illustrate this, the example can be quoted of a user who is holding
$USDCand has used this to mint
If a user is confident that the price of
$USDCwill drop and wants to "buy on the dip", they can perform the related DeOrder using the "DeOrder/Buy" action.
Conversely, if a user is confident that the price of
$USDCwill rise and wants to "take profits", they can perform the related DeOrder using the "DeOrder/Sell" action.
DeOrderBook is similar in concept to a decentralised exchange (DEX) in which users can swap between all supported token types on the platform in order to facilitate different actions: supported cryptocurrencies (
$USDC), BULLET tokens, SNIPER tokens, HODL tokens and $DOB tokens.
$DOBis the native token of the DOB ecosystem, and is earned by users any time that they stake their tokens in DeOrderBook.
$DOBcan be used to claim a share of up to 80% of the platform's BULLET tokens as a reward to be earned on a per-block basis.
$DOBcan be used for voting rights, but is not your average governance token.
$DOBcan also be used to buy even more SNIPER and BULLET tokens, making it easy for users to keep earning.
Before the expiration of the pool a user has staked their tokens in, they can choose to collect their rewards with or without exercise.
Collecting rewards with exercise means that an underlying asset would be bought or sold at strike price.
Expiry dates refers to the last day that a SNIPER token and corresponding BULLET token are valid. The BULLET expires and becomes worthless if the BULLET owner chooses not to exercise the option on or before the expiry date.
Currently DeOrderBook allows users to choose from three expiries of immediate 1 month, 2 months, 3 months with ongoing rolling.
During DeOrderBook's open beta on the Goerli testnet, GoerliETH token are used by users to pay transaction fees and approve transactions in lieu of real
Every currency supported by DOB possesses its own HODL tokens. At the time of writing, DOB supports
$uHODLtokens available. It is possible to switch between
$uHODLwithin the native DEX.
Investing HODL tokens are the key behind DeOrderBook. A user starts by investing HODL tokens onto the platform, upon which they are immediately eligible to start earning
$DOBrewards. Investments are made based on time-bound predictions of the prices of supported cryptocurrencies on the platform: users can think of them as warrants, giving investors the right to buy specific amounts of stock at specific prices on specific dates.
A limit order can is an order to buy or sell at a given price. The trade will be filled if there is matching liquidity in an orderbook.
On DeOrderBook, 'DeOrders', or this protocol's version of limit orders, are placed with HODL tokens. For example:
- a user wants to "buy the dip" of
$BTCprice is currently $50,000. The user will place a limit order with
$BTCat $45,000. The user will need 45,000
$uHODLto place this order. If
$BTChits $45,000, then the user will receive 1
$bHODL. The user can cancel the limit order anytime.
- a user wants to "profit take" with
$BTCprice is currently $50,000. The user will place a limit order with
$bHODLfor $55,000 per
$BTC. The user will use 1
$bHODLfor this order. If
$BTChits $55,000, then the user will receive 55,000
$uHODL. The user can cancel the limit order anytime.
In DeOrderBook, whenever HODL tokens are placed in limit orders, their APR gets boosted.
Once a user has HODL tokens, they can lock them for SNIPER or BULLET tokens to start participating in pools.
There is no minimum locking period, so users can always unlock their tokens for a fee.
Minting is the basic action to create HODL tokens.
- users mint
$wBTCat a 1:1 ratio.
- users mint
$USDCat a 1:1 ratio.
- There are no minting fees.
Minting is the beginning of user's activation in DeOrderBook.
DeOrderBook offers users a wide range of sub-pools in which to stake their SNIPER or BULLET tokens, with
$DOBtokens continually earned as rewards.
The APY of different sub-pools varies based on factors such as the popularity of the pool. This helps the protocol continually rebalance with bigger pools having lower APYs than smaller pools, incentivizing a balance between all pools.
At the time of launch, DeOrderBook is offering nine different pools.
At different stages of the DOB process, fees are collected to continually create a feedback mechanism of value within the ecosystem.
A portion of those fees will be rebated to
After a user has locked their HODL tokens for their respective BULLET or SNIPER tokens, they still could run into the situation where they need those bags to be liquid again.
They can then redeem their original tokens with a simple redemption fee of 0.2%.
Staking in the crypto context means depositing tokens in a smart contract, often in order to "put them to work" or gain an additional utility.
In DeOrderBook the following modalities of staking are available:
- SNIPER token staking to earn $DOB
- BULLET token staking to earn $DOB
$DOBtoken staking, to earn a share of platform fees.
Every currency supported by DeOrderBook possesses its own SNIPER token. At the time of writing, DeOrderBook supports
SNIPER tokens come in a variety of classes. Each class consists of two parameters, a strike and an expiration. Expressed as follows:
For example, the SNIPER issued for locking $bHODL tokens, with a strike of $60,000 and expiry on 1-MAR-2022 will be known as $bSNIPER60000–20220301. BULLET tokens of different classes are not fungible or directly interchangeable.
SNIPER tokens can be staked for $DOB rewards.
Target price is also known as exercise price. It is the price at which BULLET tokens can be exercised.
Underlying is the asset on which the price of a SNIPER or BULLET token is based.
$USDCare supported while future versions would add
$ETHand other tokens.
Whenever a user needs to perform an action external to DeOrderBook with his positions, the HODL tokens must be unwound and the user will receive the representative token,
$wBTCin the case of
$USDCin the case of
$uHODL. A 0.20% unwinding fee is charged on every unwind transaction.
This is used instead of APR on DeOrderBook. It represents: Variable Annual Percentage Rate, calculated as : (dollar-value of DOB rewards) / (dollar-value staked in pool)