Skip to main content

What is Panoptic?

Panoptic is a perpetual, oracle-free options protocol build on the Ethereum blockchain.

(put video here)

Introduction​

The Panoptic protocol consists of smart contracts that can directly interact with any Uniswap v3 pool contract to handle the minting, trading, and market-making of perpetual put and call options. All smart contracts are available 24/7 and users can interact with the Panoptic protocol without the need for intermediaries like banks, brokerage firms, clearinghouses, market makers, or centralized exchanges.

Panoptic is the first decentralized and composable options protocol that is able to overcome the technical limitations and challenges that make the implementation of on-chain options difficult. We achieve this by embracing the decentralized nature of Automated Market Makers and permissionless liquidity providing.

The following sections will provide a brief overview of the Panoptic protocol.

What are the risks?​

Options trading is not for everyone. Like any form of leveraged trading, trading options is associated with significant risks. Any user that wishes to interact with the Panoptic protocol has to understand the risks involved.

The main risks are:

What is the relationship between Panoptic and the Uniswap v3 protocol?​

Options in Panoptic trace their origin to the simple observation that providing concentrated liquidity in Uniswap v3 generates a payoff that is mathematically identical to selling a put option. In a sense, the liquidity provider (LP) positions are tokenized short puts. What Panoptic enables is the minting of options in "peer-to-protocol" manner but facilitating the transfer of these tokenized LP positions to create long/short puts and calls.

(block diagram here)

Resources​

Developers​

Users can access the developers docs here

Whitepaper​

Users can access the whitepaper here

Security​

Users can access details about the security audits here