Revisiting wDELTA & NFT AMM

I made approx a year ago a post about converting Vesting Delta into a wNFT in the topic :
[Idea] wDelta to increase rLP revenue :hotdog: , and I wanted to revisit it.

A month later cVault Options was released for auditing and community review. ok cool beans :beans:

This code shows that the Core Vaults can use NFTs to keep track of options. ok cool beans :beans:

Sudoswap Git & Sudoswap & Docs - lots of parallels with CORE. XMON was a 10k token among more stuff. but the point is Sudoswap is a “market maker (AMM) protocol that facilitates NFT-to-Token swaps (and vice versa) using customizable bonding curves”.

My idea here is that you can take options contract NFTs and have high tax % LP pools so that users can have the option to trade quickly or waiting for them to expire. there are many benefits to either and depends on the positions and strategies of users. Also bonding curves very useful to charge fees. Not only limted to that but bonding curve can prevent exploiting the system since the less NFTs in the LP the higher the price of the NFT.

Delta NFT AMM, the deep defi markets are so deep that they come from the abyssal zone :shark:

Edit:

  1. There will be a point that the option in the NFT vault will be so high in comparison to market price that the NFT will expire. This can unwrap the option into the vault and either use the ETH to kick start a new vault or default it into the Deep Farming Vault
1 Like

Maybe this tells the story better. The way i picture this is:

  • Person has an Option A via an NFT voucher.
  • Price action causes Option to almost expire due to price action.
  • Person then decides to sell the NFT Option against the Liquidity Pool to recover some loss before it expires.
  • Price action changes again and Option Becomes valuable again.
  • Person B buys Option in LP which is now valuable but has not expired.

Explain how the LP avoids absorbing losses in this scenario

1 Like

New Updated - Use ERC-404 to make wDELTA NFTs

Integration of wDelta NFTs into the Delta Ecosystem

  • Introduction of wDelta NFTs:
    • Represents actively vested Delta tokens from rLP farming.
    • Users convert vested Delta into wDelta NFTs by paying a premium, contributing to ecosystem revenue.
  • Process Overview:
    • Users pay a premium to convert vested Delta into wDelta NFTs.
    • Premiums are distributed to the Deep Farming Vault and rLP stakers.
    • wDelta NFTs are integrated into a 404 liquidity pool, boosting overall liquidity.
  • Benefits of wDelta NFT Integration:
    • Enhances liquidity and provides an additional trading avenue for users.
    • Contributes to ecosystem revenue generation, benefiting all participants.
    • Offers flexibility for wDelta NFT holders to trade or use in DeFi products like staking.
  • Integration with Delta Ecosystem:
    • Leverages existing Delta vesting schedule for wDelta NFT creation.
    • Integrates premium payments into the Deep Farming Vault and rewards rLP stakers.
  • Implementation Plan:
    • Develop ERC-404 compliant smart contract for wDelta NFT management.
    • Integrate premium distribution mechanisms for ecosystem benefits.
    • Conduct thorough testing to ensure security and functionality.
  • Conclusion:
    • Integration of wDelta NFTs enhances liquidity and revenue streams.
    • Leveraging existing infrastructure ensures seamless implementation.
    • Aims to drive innovation and growth in the Delta ecosystem.