Quickstart User Guide (ELI5)
A layman's guide to the terms and features on 0xdx
Welcome to the Explain-Like-I'm-5 handbook for 0xdx! Our main objective with 0xdx is to build a gamified NFT options trading platform for everyone - beginners to seasoned veterans. In this guide, we’ll provide a breakdown of all the core features and terms you'll find on 0xdx including how to trade option contracts, bridging funds from Ethereum <> Arbitrum (Eth Layer-2) and everything about leveling your Battle Pass & COIN! What are options? What is a Strike Price? What is Collateral? Don't you worry fren, we'll address everything down below as well as on the platform.
Upon creating an account & logging in, click the Profile icon in the top right of your screen followed by Wallets.
To trade an options contract, after specifying require parameters (expiry date, strike, etc) you can click any button in the trade tab and it will prompt you to connect a wallet, from the provider of your choice.
Wallet Connect Dialog
We will first be launching on testnet and using this extremely fast and efficient network. Upon connecting your wallet, you can access our test Eth faucet in the form of a coin named AGOR to play around with and test the functionality of 0xdx!
Since Arbitrum is a Layer-2 chain of the Ethereum network, you will be using the same wallet address that you likely already use for the majority of your NFT activity. There is a dialogue prompt that will ask you to switch to the Arbitrum Görli network in order to continue.
When we ask ourselves this question, there’s always two points of view to consider: the Buyer perspective & the Seller perspective.
When a Buyer buys a put option, they are speculating that the average price of the NFT collection will be lower at the option contracts expiration date than at the time of buying. At 0xdx, we use European Style options that allow for buyers exercise their option on the date of expiry. In this case of buying a Put, the Buyer is essentially taking a Short position.
If we look from the Seller perspective, they are hoping that the average price of the NFT collection goes up (or stays neutral) so the Buyer cannot exercise their option with the Seller making money from the Premium (the price the option contract was listed for) and also keeping their collateral ETH.
Call options are essentially the opposite of Put options. Buyers of Calls are hoping that the average price of the NFT collection goes up, so at the options expiry date, they’ll be “In the money” as Wall Street traders say. Buying a Call option is like taking a Long position.
If our point of view is from the Seller perspective, they are hoping that the average price of the NFT collection goes down (or stays neutral) so the Buyer does cannot exercise their option at expiry, resulting in the Seller making money from the Premium and also keeping all or a portion of their collateralized ETH.
The 0xdx team is currently revamping the Trade and Dashboard tabs based on valuable feedback from our users and advisors
As a Seller of an option, there are variables that you first must assign to determine the conditions of the contract.
For testnet there will be three available Blue Chip collections available for speculation: BAYC, Azuki & Pudgy Penguins.
This is the price which determines whether the Buyer of either a Call or Put option are able to exercise their option. As an example, if you were to buy a Call option on the Bored Ape Yacht Club collection and the market price of BAYC after your option expires is higher than the Strike Price, you would be able to exercise that contract for the collateral value in ETH. The seller will select a Strike Price for the contract upon its creation based on set intervals within a range of the current index price.
The size of the contract is set by the Seller of the options contract. Sizes can fluctuate between 0.01 and 1. For example, you can speculate on 0.08 BAYC or 1 AZUKI.
Note: the collateral you are required to post for an option contract scales with the size of the contract.
Set the expiry of the option to end of week up to four weeks out (Fridays at end of day UTC). Options can be bought and sold through our orderbook. Contracts will be settled and exercised on the Expiration Date.
This is the amount of ETH that must be locked up in the option contract to speculate on an NFT collection. You should only risk as much Ethereum as you can afford to lose. In other words, options on the platform are fully ETH-secured.
Ethereum on the Arbitrum network will be used as collateral and will be set prior to the creation of the option contract. The underlying NFT asset will never be used as collateral and you do not need to own any of the items within the collection.
Buyers and seller will submit market and limit orders at premium values that they see fit as per current market conditions. Our DeSpec Ordebook will contain the current bid and ask prices for each option type.
The amount of ETH rewarded to either the Buyer or Seller upon settlement of the option after expiry. A detailed breakdown on the payout calculation is provided further in our documentation.
Our in-house orderbook for any Put or Call options that are currently active. Buyers and sellers can transact here directly. Bid and ask prices will exist for all active option types.
Earn Experience Points for every interaction on 0xdx. Earn by trading option contracts, and progressing your battle pass. Additionally, login once a day to hit the Daily Free Claim button to get free XP, COIN or raffle tickets.
The currency used on 0xdx for rewards in our bespoke Marketplace. COIN can also be exchanged for Raffle Tickets at a rate of 1000 COIN for 1 Raffle Ticket.
If you’re familiar with games like Call of Duty or Apex Legends, you’d be accustomed to a Battle Pass style of progression. Level up your BP and be rewarded with special items, raffle tickets, COIN and more!
Where else do you come after a long day of speculating? After you’ve gathered some COIN and Raffle Tickets, come shop at our Marketplace stocked with Web2, Web3, Physical and Phygital items. All items in the marketplace will have a timed duration until they are rewarded.