1. Project Overview
Thetanuts Finance (NUTS) has been launched on HIBT on May 20. Thetanuts Finance is a decentralized on-chain options protocol focusing on altcoin options, allowing users to do long or short on-chain options. The protocol was first launched in September 2021 and in its first iteration introduced Basic Vaults, selling out-of-the-money (OTM) European cash-settled options to recognized market makers in the form of option premiums. Users generate revenue. With the v3 upgrade, Thetanuts Finance further focuses on altcoin options, expanding new use cases for on-chain options trading through the lending market and Uniswap v3 pool. Currently NUTS is open for trading on HIBT.
2. Technical architecture and application
Basic Vaults: Basic Vaults are the core component of Thetanuts Finance and allow users to earn income by selling OTM European cash-settled options. Tokenized base Vault positions exist in the form of $XYZ-C (bullish Vault LP tokens) and $XYZ-P (bearish Vault LP tokens), and these tokens form the backbone of all trading strategies on Thetanuts Finance v3.
Multi-chain protocols: Currently, most options protocols are centralized on the Ethereum mainnet and only support major assets (such as $ETH and $WBTC). Thetanuts Finance focuses on filling the gap in the altcoin options market, taking advantage of the high volatility and inability to generate income of altcoins to provide a way to generate income through option fees.
v3 upgrade: The v3 version introduces a unified trading interface, integrating the basic treasury, AMM and lending market, simplifying user operations. In addition, v3 provides users with the ability to purchase options and the flexibility to exit basic Vault LP positions through the use of AMM and lending markets.
3. Token Economy
Token symbol: NUTS
Total amount of tokens: 10,000,000,000
Token distribution ratio and unlocking rules:
Community: 43.5%; released over 65 years
Investors: 11.9%; 3-month lock-up period, 21-month release period
Team: 20%; 6-month lock-up period, 24-month release period
Treasury: 20.1%; 30% unlocked, 36 months release period
Airdrop Season 1: 3.0%; 100% unlocked at TGE
Public fundraising round: 1.0%; 100% unlocked at TGE
Initial liquidity: 0.5%; 100% unlocked at TGE
4. Key Milestones
September 2021: Launch of Basic Vaults, enabling users to sell OTM European cash-settled options to recognized market makers.
April 2022: Raises $18 million in seed round from QCP Capital, Deribit, Paradigm, GSR, Wintermute, Jump, GoldenTree, Tribe Capital, and others.
June 2022: Launch of Thetanuts Finance Stronghold, an index product that aggregates multiple underlying vaults.
January 2023: Additional vaults launched – including Long Vaults (buyer’s vaults), Degen Vaults (exotic vaults), Wheel Vaults (European physical settlement vaults).
April 2023: Raises $17 million in Series A funding, led by Polychain Capital.
November 2023: Launch of Thetanuts Finance v3 Incentive Alpha.
Q1 2024: Thetanuts Finance v3 mainnet goes online.
5. Advantages of v3 upgrade
Core Vault: Basic Vault remains at the heart of Thetanuts Finance v3. Basic Vault LP tokens will be used to bootstrap the rest of the v3 ecosystem.
Unified Interface: v3 version provides an upgraded trading interface that eliminates the need for traders to interact with the base vault, AMM and lending markets separately.
Option purchasing ability: v3 version allows users to purchase options through the use of AMM and lending markets, increasing the flexibility of the strategy.
Exit Flexibility: Prior to v3, Vault LP would need to wait until the end of the next epoch before exiting a position. With AMM, users can swap out Basic Vault LP tokens immediately without waiting for the epoch to end.
Infrastructure reliability: v3 draws on the infrastructure of Aave v2, which has never been utilized before, and combined with the Uniswap v3 technology stack ensures the security and reliability of v3 upgrades.
Sources of additional income: In v3, users can obtain lending interest from the lending market, AMM transaction fees, potential $NUTS token incentives, and other additional token incentives.
Free market pricing: The v3 version provides free market pricing functionality, allowing users to take advantage of arbitrage opportunities in AMM pricing to gain profits.
6. Summary
Thetanuts Finance, as a decentralized on-chain options protocol focusing on altcoin options, provides users with diversified income avenues and flexible trading strategies through its innovative basic vault and v3 upgrade. Its unique market positioning of its multi-chain protocol and focus on altcoin options sets it apart in the highly competitive DeFi space. With the launch of the v3 mainnet, Thetanuts Finance will further enhance the functionality and user experience of its platform, bringing more benefits and trading opportunities to users.
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