Opyn

The squeeth contract is design for users to long or short a special index like eth², as an implementation of a Power Perp.

Mechanism-wise, the squeeth contract works like a perpetual swap, where people can go long or short on an index, and funding is charged either from the long or short, based on the market price relative to the index.

An important difference to other perpetual protocols is that there is no leverage on long positions. This means that it is impossible to be liquidated on a long squeeth position, and allows the long position to be a standard fungible ERC-20 token that can be traded separately (in Uniswap pools, for example, or as collateral for loans).

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Methodology

1. Determine the total and the daily of Opyn Squeeh Contract TVL in USD.
2. Examine where oSQTH derives its value, based on the amount of wETH exchanged to oSQTH on the Uniswap V3 pool.

What is the total value locked in the Opyn Squeeth (osQETH) contract?

The charts show the Opyn TVL trends over time. We can see that, the TVL volume is more than 16 million USD in April then steadily decreased to less than 8 million USD in June.

Where does oSQTH draw its value from?

What is the Opyn's TVL trends over time

Conclusion

The graphs show the top ten addresses that switched from wETH to oSQTH. At 52k ETH, 0xfb9...700 has the greatest wETH swap to oSQTH.

Amazingly, the least swapping volume address in the top ten still has a significantly large swap volume of more than 11k ETH.

This graph represents the daily oSQETH swapped from ETH volume (in log scale). Prior to June, the daily swap volume to oSQETH was roughly 100-300 ETH.

Surprisingly, the swap volume has spiked multiple times since June, with the largest reaching 59k ETH on June 13.

There are a total of 1.5 million USD currently on the Opyn Squeeth contract.

• The Opyn Squeeth contract is presently worth 1.5 million USD.
• In April, the TVL volume was more than 16 million USD, but it steadily declined to less than 8 million USD in June.
• Prior to June, the daily swap volume to oSQETH on the Uniswap V3 LP was around 100-300 ETH, then has many spikes after June peaking at more than 59k ETH a day.
• 0xfb9...700 has the highest wETH swap to oSQTH at 52k ETH.

In this study, we will find the value of oSQTH that was drawn from the ETH that swapped to oSTQH with the Uniswap LP V3.