About

Squared ETH, also known as Squeeth, is a perpetual options system that allows for unbounded upward leverage and no liquidation of long holdings. Opyn's Research Team (Zubin Koticha, Andrew Leone, Alexis Gauba, Aparna Krishnan), Dave White, and Dan Robinson designed Squeeth (squared ETH), a novel financial derivative. Squeeth is the first Power Perpetual, providing traders with continuous exposure to ethereum squared.

History

The Opyn team launched Squeeth on the Ethereum mainnet on the 11th of January. Squeeth (short for squared ETH or ETH2) is a product created by @opyn_ that combines elements of options, leverage, and perpetual swaps while eliminating strikes, expirations, rolling, and liquidations for longs. With the introduction of Squeeth on January 11th, Opyn launched The Crab Strategy on January 14th, a contract that will automate rebalances to preserve delta neutrality, allowing users to deposit ETH and earn yield with minimal upkeep. According to a Jan. 9, 2022 blog post by Wade Prospere, head of marketing and community at Opyn, the basic purpose of the new tool is to give traders exposure similar to highly leveraged bets they could get from trading options, but without the need to set strike prices or determine contract expiration dates. Squeeth converts the options exchange into a permanent contract that can be utilized as a hedge. The trade gives leverage without liquidations on the long side — speculating on price appreciation.