CLAMM Upgrade: Realising Stryke’s Vision

CLAMM Upgrade: Realising Stryke’s Vision

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RECOMMENDED PRE-READING

Before going through the product upgrade summary, please familiarise yourself with our CLAMM offering via. the following links:

OVERVIEW

  1. Introduction
  2. Release 01: LP Range Selector
  3. Release 02: Liquidity Reserve System
  4. Release 03: Multidex Support
  5. Release 04: CLAMM Hooks
  6. Conclusion

INTRODUCTION

Inline with our vision of establishing Stryke as a hub for crypto options, we’re enhancing our liquidity management approach. Our new additions to CLAMM include range selector, reserve liquidity tool, innovative deposit model, multi-DEX support. We’re also introducing hooks for granular options trading strategy management. Let’s discuss these new features in detail next.

FEATURE 01: LP RANGE SELECTOR

Context

Previously, users had to manually select each tick for depositing, a process that was not only time-consuming but also lacked flexibility in handling imbalanced token ratios. This challenge often meant that on platforms like Uniswap, users needed to perfectly balance their token ratios for deposits, with some protocols even introducing a “zap” function to simplify this process.

Feature Summary

Our new feature offers a solution that is a significant improvement over traditional range deposits. The new range selector and deposit feature allows users to choose a deposit range in a single transaction, eliminating the need to manually select each tick.

What this means

This provides unparalleled ease and flexibility in managing liquidity, allowing users to engage in options trading more effectively. By removing the barriers associated with token ratio balancing and manual tick selection, we’re enabling a more intuitive and efficient liquidity management and options trading experience. Also it looks cool.

FEATURE 02: LIQUIDITY RESERVE SYSTEM

Context

The Liquidity Reserving System is designed to simplify the process of depositing . This new approach ensures that LPs have a clear and manageable way to contribute to the pool and withdraw liquidity, which is then used for the trading of options contracts. Previously, LPs had to wait and check until their liquidity is not actively being used for as part of a running options bought by a trader.

Handler Changes

Now, LPs can reserve their provided liquidity. This means that as soon as an option is exercised or expires, the liquidity is not accessible by other option buyers. The liquidity is reserved for the LP for up to 24 hours for withdrawal.

What this means

What does this mean for existing LPs? As we transition, users will need to withdraw liquidity from the existing handler and deposit it in the one.

Rewards for existing users on the older handler will continue until March 1st, after which all reward distribution will move to the new handler. Therefore, it is critical that all users migrate before the end of the month.

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FEATURE 03: Multidex Support

Context

As part of the broader Stryke vision, we are reorienting our product strategy for cross-chain compatibility. This move is driven by our aspiration to onboard large market markers, LPs and strategic DEX partners who are looking to enter the LPDfi space.

Feature Summary

Through multi-DEX support, CLAMM can now be accessible across chains, deepening liquidity and gaining exposure to larger audiences. CLAMM liquidity can now be added onto various DEXs, including Uniswap directly through our user interface. We will be soon revealing some partner DEXs where CLAMM liquidity can be deposited.

FEATURE 04: CLAMM HOOKS

Context

The current model in options trading platforms limits users to predefined strategies for options trading, restricting flexibility and strategy customization.

Feature Summary

Our "Hooks Feature" addresses this by allowing users to integrate custom logic into their trading activities. This enables personalized control over options trading strategies, adapting to individual needs and market conditions.

What this means

By implementing hooks, users can tailor their trading strategies with precision, responding dynamically to the market changes. This not only enhances the platform's flexibility but also optimizes trading efficiency. This will open up a world of opportunities within the LPDfi space for builders.

Usage Examples

  • Avoid selling options on weekend when IV is lower.
  • Sell options only for specified timeframes.
  • Token-gate liquidity (Example: only specific NFT holders).
  • Restricting options from being sold, if it’s below a targeted premium.

NEW: NATIVE USDC SUPPORT

We've transitioned to USDC on Arbitrum for WETH, WBTC, and ARB, moving away from USDC.e. This is to align with the broader Arbitrum adoption of USDC enhancing cross-protocol compatibility.

USDC.e will remain as a temporary legacy option, until we retire our legacy pools.

Conclusion

The introduction of these new features is a significant step in our ongoing effort to create user-friendly, composable, and flexible options products designed for efficiency and the onboarding of strategic partners, such as market makers and large option LPs.

The introduction of the new system, with its range selector, reserve liquidity tool, innovative deposit model, multi-DEX support, and hooks feature, marks a significant step forward in creating a more efficient, user-friendly platform for options trading. Start trading and depositing on CLAMM here

Note on liquidity migration :

CLAMM on the Stryke (fka dopex) dApp is using the new handler. If you have liquidity that is still on the old handler (liquidity added before Tue Feb 27 21:02:44 2024 UTC ) you can wait for it to clear up (once the corresponding options expire) and re-deposit once more at which point it will automatically be added to the new Handler contract.

Additionally, Please note that Rewards for existing users on the old handler will continue until March 1st, after which all reward distribution will move to the new handler. Therefore, it is critical that all users migrate before the end of the month.

About Stryke

Stryke is a decentralised options protocol that focuses on maximising liquidity and enhancing gains for option buyers while minimising losses for option writers—all in a passive approach.

Stryke employs option pools that enable anyone to effortlessly earn yield. The protocol provides value to both option sellers and buyers by ensuring equitable and optimised prices for options at various strike prices and expiries, achieved through our proprietary, cutting-edge option pricing model designed to mirror volatility smiles.

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