Point Perps

Summary

Odyssey's point perpetual contracts (perps) track the value of one point for a specific protocol.

Point perps are similar to normal perps, however, points perp do not depend on an external spot price oracle. Instead, the index price is self-referential.

How is the Initial Index Price Chosen?

How is the Index Price Computed for Points Markets?

The index price is computed as an exponentially weighted moving average (EWMA) of the perp’s mark price.

If the perp's mark price increases, the mark will rise far above the index, incentivizing traders to short. As time goes on, the index price and mark will converge because the moving average index price will move closer to the mark, and the funding rate will incentivize traders to bring the mark in line with the current moving average.

Conversion Post Token Launch

24 hours after points become redeemable for liquid tokens, a conversion factor between the token's spot price and the points' index price will be computed based on the minimum number of tokens received for each point held.

The index price will revert to the product of the token's price times the number of tokens airdropped per point.

Index Price = Token's Price * # of Tokens per Point

If points may be staked or otherwise locked to yield more tokens, the conversion price will only take into account the immediate conversion rate (e.g. the conversion factor will equal the lowest liquid rate). Subsequently, the contract will trade with an index price equal to the standard Hook oracle price of the spot token times the conversion factor.

Points Markets

MarketInitial Index PriceMax LeverageForced Conversion End DateConversion Factor

BGOLD-USDC

2x

1/1/2025

TBD

HLP-USDC

2x

TBD

TBD

Special Cases

  1. What if points are redeemable for tokens before the token becomes available for trading?

The conversion from the pre-launch to post-launch index price occurs only when points can be initially redeemed for tokens and the tokens are tradeable.

  1. What if the token is not withdrawable, but is tradeable for USDC or ETH?

If the token is not available on major CEXs, but a USDC or ETH/WETH pair is available within a DEX, this price will be used as the token's price to compute an index.

If the price feed for this market is not available at launch, trading will be paused in the point market until the feed can be made available.

  1. What if the token or points are locked for vesting for larger Holders?

As long as some users can convert from points to tokens, the conversion factor between the token price and the points index price will be locked.

  1. What if the points-to-token redemption ratio changes over time?

Once locked, the redemption ratio will be fixed. Only the initial redemption ratio qualifies.

  1. What if the points never become redeemable?

If points don’t become redeemable by a certain date (see chart above), the contract will settle at $0.01 per point.

  1. What if points are redeemed for USDC or something else?

If points are redeemable for something other than tokens that have a generally accepted dollar-denominated price, the contract will utilize that price to determine a conversion factor.

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