Introduction

Squeeth or Squared-ETH or oSQTH allows gives investors the ability to benefit from leveraged positions without being liquidated. With the Squeeth token Opyn Squeeth being an ERC-20 token that can be bought and sold on Uniswap as well as the BKEX exchange. With each investor paying a daily funding rate from their holdings for their position.

Investors can also take a short position by putting down ETH collateral to mint OSQTH and sell them. To close a long position an investor has to buy back oSQTH and burn them to get their collateral. Short investors earn a funding rate, which is taken from long investors. This position holds some risk as investors can get liquidated.

Methodology

For both Squeeth TVL Over Time and TVL Squeeth Today Table, I looked at the amount of ETH in the Squeeth controller addresses 0x64187ae08781B09368e6253F9E94951243A493D5 over time and for the current date. Taken from the ERC20_Balances Table.

For the OSQTH price, hourly data of the token price of is selected where the token is the oSQTH contract

0xf1b99e3e573a1a9c5e6b2ce818b617f0e664e86b. This taken from Token_Price_Hourly_Table.

Current TVL is 6.73k ETH, with the balance having grown over time as more people have deposited collateral/bought oSQETH.

Due to the loss in value of ETH seen in recent weeks we can see a decrease in the value of the holdings held in USD since it’s peak of 16.90 million USD in early April.

The price of the oSQTH token is based on accumulated TVL from when the contract was first created. The normlisation factor which is represented by the funding payed by long positions, leads to a lower price oSQTH when compared to ETH^2. For those looking for more detail on how this work read the helpful: [Squeeth Primer: a guide to understanding Opyn’s implementation of Squeeth] ().