LogoLogo
  • What is ethere.al
  • What is ISA
  • Mintable Assets
    • Direction - Bullish
      • DeFi Growth Market | DGM
      • eITY | Inverse 3x, 5x, 10x Leveraged US Ten Year Yield Hedge
      • Financial Innovation Market | FIM
      • Indirect Crypto Exposure | ICE
      • Synthetic Economies
      • Traditional Finance to Decentralized Finance Interpolation | TDI
      • Transversal Unemployment Market | TUM
    • Direction - Bearish
      • Consumer Price Index DeFi Hedged | CPIDH
      • Consumer Price Index TradFi Hedged | CPITH
      • DeFi Capital Inflow | DCI
      • DeFi Capital Outflow | DCO
      • Distributive Debt Cycle | DDC
      • eTY | 3x, 5x, 10x Leveraged US Ten Year Yield Hedge
      • eBTC - eETH | Inverse Large Cap Assets
      • Synthetic Recession Probability - usRP
      • Traditional Capital Inflow | TCI
      • Traditional Capital Outflow | TCO
    • Direction - Neutral
      • Delta DeFi Sentiments | DDS
      • DeFi Gamma Expansion | DGE
      • Delta Global Energy Sentiments | DGES
      • Delta Global Technology Sentiments | DGTS
      • Delta Neutral Indirect to Direct Crypto Exposure | DNIDCE
      • DeFi Volatility Index | DVIX
      • Global Energy Sentiment | GES
      • Global Technology Sentiment | GTS
      • Machine Generated Market Sentiment | MGMS
      • Rapid Extrinsic Value Decay AVAX | REVDA
      • Rapid Extrinsic Value Decay BTC | REVDB
      • Rapid Extrinsic Value Decay ETH | REVDE
      • Volumetric DeFi Exposure | VDE
    • Example Portfolios
    • Non-Traditional Hedges
    • Pricing Model
  • Mintable Dynamic Products | Options
    • Rho - Dynamic Fixed Yield Product
    • DTV Sync Options
  • Economics
    • Swap and Mint Fees
  • Roadmap
    • Team
    • Product Vision
    • Additional Asset Mints
    • Tokenized Algorithms
    • Deep Option Liquidity
    • Lending Partnership
    • Governance
Powered by GitBook
On this page
  1. Mintable Assets
  2. Direction - Neutral

DeFi Gamma Expansion | DGE

PreviousDelta DeFi Sentiments | DDSNextDelta Global Energy Sentiments | DGES

Last updated 3 years ago

DGE - DeFi Gamma Expansion - Seeks to track the second derivative, the rate of change, of collective DeFi notional value. It smooths pricing spikes and removes some volatility from the DeFi market as a whole. Like the underlying market, positive moves correlates to asset appreciation whereas negative underlying market moves results in asset depreciation.

Mints start at 10 USD worth of ISA and will theoretically trade as a summation of the aforementioned smoothed trend. The longer a positive market move is sustained, the more sensitive DGE becomes towards positive moves. The shorter a positive market move is sustained - or if a negative move is made - the more the asset depreciates. Over time - the range will rise or fall based on the relationship between the two, but the bias representation will remain consistent.

Like all collateralized products on our platform, sRho is used to secure the short position. DGE utilizes a 2:1 collateral ratio to secure the position. A 2.5% mint fee is required to mint DGE - with the minter receiving sDGE in return as a receipt.

A 2.5% fee applies to swapping sDGE. sDGE can be bonded and sold to the Treasury. Short-sellers will also pay interest to the pooled long sDGE at a daily interest rate of 0.2% per day - which will be paid for in sRHO. This daily interest will be calculated at the time of establishing the short by entering the maximum number of days you will be short for. Once the time limit is up - the short contract will expire and the short closed. If DGE is below the price when the short was initiated, the aggregated long pool of DGE will pay the unit count worth of profit to the now closed short holder. The time interest the short paid to the collected pool of longs will then be distributed to the longs proportional to their positional unit count.

However, the interest will only be paid to the long holders that were in the pool at the time the short was established. If a short-seller chooses to close out their position at a loss, the collateral lost will be divided among all long sDGE unit holders that were in the pool at the time the short was established. If the short-seller closes out their position at a profit, the percentage of the profit will be divided amongst all long sDGE and the appropriate sDGE units will be transferred to the short-seller as profit.

Shorting above the total float of DGE in the lending pool is prohibited.

The DGE token shows a warp map of the second derivative of DeFi market pricing.