Dopex (Stryke) x Orange Finance Twitter Space

In Orange Finance’s Twitter Spaces which took place on February 26, 2024, 0xkohaku from Orange Finance hosted BossImp from Stryke to discuss Orange Finance, Stryke liquidity management, enhancing user experience, maximizing STIP rewards through the launch of Stryke’s Vault and Options Protocol, yAudit Security, exclusive launch event, and more! Read our notes below to learn more.

Background

0xkohaku (Host) – Co-founder/Biz at Orange Finance

BossImp (Guest) – Advisor at Stryke (formerly Dopex)

Orange Finance – Orange Finance is an automated liquidity management protocol at the forefront of LPDfi innovation in the DeFi space

Stryke – a Decentralized Options Exchange that uses distributed ledger technology to provide permissionless and non-custodial access to option trading

Orange Finance: Collaboration with Stryke

0xkohaku discusses his role focusing on business development at Orange Finance. He talks about studying finance in London, starting with crypto by buying $ETH and entering the NFT market before its boom in 2019.
He recounts transitioning from NFTs to DeFi during the DeFi summer of 2020, alongside his team at Orange Finance. They created a DeFi Insurance Protocol, focusing on balanced investment strategies and solving problems for liquidity providers in AMMs. To improve how effectively liquidity providers can use their capital, they started Orange Finance.
He says that they are working with Stryke (formerly Dopex) on developing automated liquidity management and announces an upcoming vote.
BossImp, advising Stryke, describes his background in investment banking and fintech, explaining Stryke’s options protocol and its benefits, including superior yields for liquidity providers and advantages for options traders.
0xkohaku expresses excitement about developing the liquidity management vote on Stryke, aiming to simplify user experience and improve capital efficiency in the LP DeFi space, and is happy to work with Stryke’s team.
0xkohaku announces Dopex’s rebranding to Stryke and asks to understand the reason behind the rebranding.
BossImp explains the rebranding to Stryke with the launch of V2, focusing on a single token model and options, aiming to center their efforts on their core business.
BossImp explains the migration to a new token model with locked tokens for governance, the ratio for token exchange, and the benefits of migrating to the new system, highlighting the consolidation into a single token for easier management and incentives.

Maximizing Liquidity Efficiency: Uni V3 Integration, Reward Gauge System, and Automated Management Strategies

0xkohaku asks about the integration of two tokens into a single liquidity to simplify the system and attract new users and investors by reducing confusion.
BossImp says that unifying liquidity into a single token streamlines the process, incentivizes deeper liquidity, and simplifies understanding for newcomers.
BossImp explains the reward gauge system allocates a portion of rewards for voters to decide which pool receives them, enhancing governance and control over emissions.
BossImp says the advantages of building on Uni V3, stating it allows liquidity providers to natively sell options, optimize returns, and manage risks more effectively compared to traditional AMM models. He highlights Uni V3’s efficiency in utilizing liquidity through better edge management and the potential for integrating additional DeFi mechanisms.
BossImp says that the rebranding should happen around mid to end of March. He mentions the iterative process of development, highlighting the ongoing introduction of new features to enhance liquidity management and other functionalities.
He highlights the aim to improve the product continually, provide more robustness, help traders and liquidity providers, and make efforts to bring more liquidity.
BossImp asks about the specifics of the AMM vault on Stryke being developed by Orange Finance.
0xkohaku explains that Orange Finance is introducing a new vault for the $USDC CLAMM pool on Stryke aimed at automating liquidity management to maximize rewards, focusing on the STIP reward available on Stryke. He explains the vault’s features, including single asset deposit, anytime redemption, and auto-rebalancing to maintain a qualified range for rewards.
0xkohaku says that the vault actively monitors the liquidity utilization status, automatically rebalancing out-of-range positions and redepositing liquidity into a valid range.
He explains the strategy of allocating liquidity evenly across a narrower price range to maximize rewards amidst asset price fluctuations, highlighting the vault’s aim to deliver higher premiums and fees by maintaining liquidity close to the Stryke price.
0xkohaku says that they conducted a backtest using their STIP maximizing strategy for the loans, which showed a high return of 133.8% APR during one month. They decided to follow this strategy for their upcoming launch, focusing on maximizing STIP at the moment. They note that the profitability of LP on Stryke is superior to normal AMM because out-of-range liquidity positions still earn option premiums.

Stryke Vault Launch: Exclusive Event & $ARB Token Rewards

0xkohaku says they are hosting an exclusive launch event called The Spaceship to celebrate the release of their Stryke vault. They will reward campaign participants who deposit liquidity in the Stryke vault with up to 37,500 $ARB tokens based on TVL.
The campaign includes a leaderboard competition, and top depositors can win a share of 25,000 $ARB tokens if TVL exceeds $2 million, and an additional 12,500 $ARB token if TVL surpasses $3 million.
0xkohaku says the Stryke vault has been audited by yAudit, highlighting Orange Finance’s priority on security and its efforts to minimize smart contract risk.
BossImp mentions the importance of security, noting that CLAMM is built on top of Uni v3, inheriting its security features.
0xkohaku mentions monitoring the utilization rate on Stryke block by block, with rebalancing happening once a day. They may adjust the rebalancing frequency after the launch but aim to balance the maximization of STIP rewards with the need for rebalancing.
0xkohaku reflects on their positive experience with backtesting, noting that they’ve always seen good results from it and believe the upcoming vote presents a great opportunity, though outcomes can’t be guaranteed.
0xkohaku announces the imminent launch of their vote, expressing excitement to bring the product to the public and gratitude for working with the Stryke team, mentioning a personal investment, and anticipating a simplified and easier experience for users regarding liquidity management.

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Show Information

Medium: Twitter (Audio)
Show: Orange Finance Twitter Space
Show Title: Stryke (formerly Dopex) × Orange Finance
Show Date: February 26, 2024