Community Call Summary June 17, 2022

The market is volatile but our community call isn’t. If you’d rather listen to the community call than read this article, you can watch it here.

We talked about:

• Building in a bear market
• Research updates
• Platform updates
• vePremia
• Premia v3
• What we’re thinking about

So without further ado, let’s dive in

Why we love building in a bear market

During a bear market, talent becomes much more accessible so we are able to source and retain talent at rates that make sense. Projects don’t have to compete with fly-by-night ponzis whose only purpose is to pump out huge APY to get attention for their project. There’s less noise and more building during a bear. Partnerships and collaborations become easier as the noise and ponzi projects fade away. Premia has plenty of runway to emerge as a winner. Options are always in demand, it doesn’t matter if you’re in a bear market, bull market, or crab. We are seeing that now with our volume increasing even in a bear market.

Research update

We are pleased to say there are no remaining open questions on the core Premia v3 protocol and just some small design tweaks that we need to do. We are running simulations on LP payoffs and protocol revenue generation to see how different fee structures affect protocol revenue, LP expected revenue, and expected option pricing. We’ve also looking at different pricing mechanisms that we are very happy with. We are running formal verification to make sure the protocol is safe and free from bugs and exploits. Finally, we are finalizing some structured product vault designs on top of our core v3 protocol. The design of the structured vaults are complete and we are moving on to the implementation. Just to leak a couple of those: delta hedging vault and standard delta maturity vault. We plan on those going live with the v3 protocol, but we are working on other vaults which will be added later on. We are excited about the potential for future structured products build on top of v3. Premia v3 is very composable so it makes it so that Premia or any other protocol can build on top of it in an interoperable way.

The Premia v3 outline has been presented to the engineering teams including the python implementation, simulations, and testing suite so that they can ensure that everything we’ve done on the research side of things makes sense and that they can replicate it in the smart contracts. The engineering teams are starting development of that now, porting over everything from python into solidity. Of course we also passed on our research documentation and reports from our simulations.

Platform updates

Premia is currently doing ~$1M in notional volume per day. Breaking it down by chain:

• On Arbitrum we’ve seen an increase of 47% in volume, up from $64.1M to $94.3M
• On Ethereum mainnet we’ve seen an increase of 36% from $20.7M to $28.2M
• And since Fantom launch on April 29th we’ve seen volume on Fantom go up to $12.6M

Other platform updates include:

• Our new underwritten options table
• User notifications & history section
• Pool page + asset dropdown
• Vaults page
• vePremia

User notifications is extremely granular and you can have them update you and give you a notification any time there’s a change in your liquidity so if options you’ve underwritten have been exercised, liquidity that has been freed up, anything that impacts your liquidity — you can get a notification for. The history section shows all your historic positions and a breakdown of how your liquidity is being utilized in the pools. You can read more in depth about the underwritten options table and history section update here.

The new pool page and asset dropdown menu will be going live soon with a UI update.

The vaults page will also be going live soon with one of our partners and vePremia which we’ll talk about a little later.

Partnerships and integrations

We’ve been talking to a lot of different protocols over the last few months as we prepare for v3. Here’s a few of the partners we will be working with going into v3 launch.

Sherlock is a protocol that will be helping us out with sourcing audits, bug bounties, as well as providing insurance for the protocol in the future.

We have spoken with the team at Umami around vault strategies utilizing v3.

Knox, the recipient of one of our grants, will also be partnering with us on vaults when we go live with v3.

Curve; We will be enabling curve pool tokens (such as 3CRV) to be supported in our liquidity pools.

vePremia

vePremia is nearing completion at this point. These changes to tokenomics have been long left unaddressed and often asked about by the community.

Other proposals for the tokenomics to be announced soon:

• Updated emissions schedule chart
• Updated allocation chart of non-circulating tokens
• Extensions to founder vesting
• Potential for Premia locked in vePremia to be used as protocol owned liquidity

vePremia will be replacing xPremia and locked xPremia. We want to have an open discussion with the community about if vePremia should be used to underwrite Premia calls. Please join us in the conversation on our discord.

What we’re thinking about

Premia v3 is a game changer for functionality and composability of on-chain options. If you’re a market maker, if you want to be a strategic partner with us in the future, if you’re a protocol that wants to utilize part of your treasury to underwrite options — now is the time to talk to us. Maybe there’s something we could add to the smart contract to integrate with your protocols or maybe there’s something we haven’t thought of.

Premia will likely have a few different UIs to accommodate different users especially with our vaults. With some of the vaults there is a need for an auction process to seek counterparties for your trade so we will have different interfaces for the market makers utilizing those vaults. We will have different interfaces for advanced traders and basic traders. This will allow us to have an extremely easy streamlined UI/UX for basic traders getting into options but also allow us to accommodate more experienced options traders who have more specific needs.

Systematic risk has been a wider topic of conversation in crypto recently and we are happy to say that Premia worked exactly as expected with the extreme volatility lately. We didn’t have any issues, everything worked as expected with Premia. However some of the tokens we added to the platform did have their own issues. We’ve been discussing if we need to have a different vetting process for what tokens we add. This is something we’ll continue to collaborate with the community on.

We will continue to keep our head down, building and delivering regardless of what the market is doing. We look forward to sharing more progress with all of you soon.

Have questions about Premia?

Drop by our Discord server and chat with us, we would be happy to answer all your questions about the Premia ecosystem.

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