Introduction

As an implementation of a Power Perp, the squeeth contract is designed to allow users to long or short a certain index, such as eth2. A series of contracts, referred to as the Squeeth contract, is what allows you to trade the squeeth index, which stands for "squared-eth." To put it another way, investors can go long or short on an index and be charged funding based on the market price relative to the index, much like in a permanent swap. Long positions have no leverage in this protocol, which makes it unique among perpetual protocols. This means that a long squeeth position cannot be liquidated, allowing the long position to be traded like a typical fungible ERC-20 token (in Uniswap pools, for example, or as collateral for loans). Squeeth's ability to be easily integrated into other projects is a big benefit to the design.

Method

In this dashboard I used ethereum.core.fact_token_transfers table and calculate sun of raw_amount/1e18 column by filter of contract_address = lower('0xf1B99e3E573A1a9C5E6B2Ce818b617F0E664E86B') as daily transferd to Opyn Squeeth (osQETH) contract.

And for calculate the Total Value Locked I used flipside_prod_db.ethereum.erc20_balances.

Analysis

Discord:0xHaM☰d#8391

Findings

• About 60k $osQTH are held by 5000 address as Total Value Locked in the Opyn Squeeth (osQETH) contract.

• More than 54% of TVL are belong to only one address.

• The highest count of transfer transactions to the Opyn Squeeth (osQETH) contract was took placed on May 16th with 579 tx.

• On Jun 15th, 2022, the peak of amount of $osQTH was transferred to the Opyn Squeeth (osQETH) contract with more than 60k.

Where does osqeth draw its value from?

• For their services, providers of SQTH-ETH liquidity are compensated with LP fees. Being long ETH1.5 in the SQTH-ETH pool is the same as being long ETH at a leverage of 1.5x, and this leverage is constantly being rebalanced. In order for users to take part in the Uniswap V3 SQTH-ETH Pool, they are need to initially acquire or mint Squeeth and then deposit Squeeth in addition to ETH. Users that purchase Squeeth and LP will be required to pay funding if the price of ETH does not increase, which will cause a downward trend in the price of oSQTH.