Introduction 👋

An overview of the GammaSwap Protocol

What is GammaSwap?

GammaSwap is the first onchain perpetual options protocol. It is non synthetic and positions are created by borrowing liquidity from Automated Market Makers (AMMs). This enables GammaSwap to offer leverage on any token without an oracle. GammaSwap itself is not an AMM but rather a set of smart contracts that enable traders to create perpetual option positions utilizing AMM liquidity.

GammaSwap is compatible with any AMM that is a Constant Function Market Maker (CFMM). Example of CFMMs are DeltaSwap, Uniswap V2, SushiSwap V2, etc.

DeltaSwap, an AMM unique to GammaSwap

DeltaSwap is an AMM built by the GammaSwap Labs team. It uses the canonical liquidity invariant formula, x*y=k (Uniswap V2).

DeltaSwap is purpose built to work with GammaSwap by streaming the yield to reduce rate volatility and leveraging variable swap fees.

The GammaSwap dApp

The GammaSwap dApp is live on Arbitrum and Base. Users can connect their wallets to trade perp options and provide liquidity. The docs explain how to utilize the platform based on different user personas.

Here is a breakdown of the available pages in the interface:

  • Trade- the trading interface for perpetual option positions and swaps.

    • Perp Options - Borrow liquidity to get perpetual option exposure.

    • Swap - Trade spot assets using DeltaSwap.

  • Earn - the liquidity provider interface, where LPs can add liquidity to GammaSwap pools.

    • Pools - Provide liquidity into pools to earn trading fees.

    • Farms - Stake GammaSwap LP tokens (GSLP) to earn escrowed ARB incentives.

  • Portfolio - once you have added liquidity or opened an options position, your positions will appear here. There are two tabs "Supplied" to view open LP positions and "Borrowed" to view open borrow (option) positions.

Liquidity Providers

page🌊 | Provide Liquidity

Perpetual Option Traders

page📈 | Trade Perpetual Options

Spot Traders

page🤝 | Swap

Farming 🚜

page🥩 | esARB Incentives

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