Explaining SNIPER and BULLET

With SNIPER and BULLET, your options are endless

Everytime a user places a DeOrder, they generate an amount of SNIPER and BULLET tokens matching the amount of HODL tokens they used to place the DeOrder.

What are SNIPER tokens?

SNIPER tokens represent the option writer obligation, meaning the commitment to honor the order if it reaches the desired strike price before the chosen expiry date.

SNIPER token classes

SNIPER tokens come in a variety of classes. Each class consists of two parameters, a strike and an expiration. Expressed as follows:

$(asset)SNIPER${strike}–{expiry}

For example, the SNIPER issued for locking $bHODL tokens, with a strike of $60,000 and expiry on 1-JUN-2023 will be known as $bSNIPER60000–20230601.

SNIPER use cases

• SNIPER tokens are staked into the chosen DeOrder pool, where they automatically and consistently earn $DOB rewards until the DeOrder reaches its expiry date.

• SNIPER tokens can be combined with matching BULLET tokens to early unwind a DeOrder. This allows users to take back their collateral if it's looking unlikely their order will go in the money, maximizing capital flexibility.

What are BULLET tokens?

BULLET tokens allow savvy market participants to execute DeOrders in a decentralized fashion according to principles of economic rationality and game theory. BULLET tokens represent the option buyer's right to exercise. Gerege Gold NFT holders are awarded BULLET tokens when locking $DOB rewards back onto the protocol.

BULLET token classes

BULLET tokens come in a variety of classes. Each class consists of two parameters, a strike and an expiration. Expressed as follows:

$(asset)BULLET${strike}–{expiry}

For example, the SNIPER issued for locking $bHODL tokens, with a strike of $60,000 and expiry on 1-JUN-2023 will be known as $bBULLET60000–20230601. BULLET tokens of different classes are not fungible or directly interchangeable.

BULLET use cases

• BULLET tokens are sent upon generation to the protocol Treasury, where 20% is collected as fees. The remaining 80% is distributed to eligible users who have locked $DOB, distributed via a daily BULLET Raffle.

• BULLET tokens can be traded amongst users at the BULLET Bazaar. Buying BULLET tokens is an open feature at launch, but selling BULLET tokens will only be available for certain whitelisted addresses.

  • As part of its commitment to progressive decentralization, DeOrderBook will consult the community in the near future on implementing BULLET sales for a wider segment of users.

What happens if I don't do anything with my claimed BULLET tokens?

BULLET tokens that are not either sold or used for exercising DeOrders will expire 24 hours after the corresponding SNIPER expiration date.