Introduction

What is Opyn?

Opyn is a capital efficient DeFi options protocol that allows users to buy, sell, and create options on ERC20s. DeFi users and products rely on Opyn's smart contracts and interface to hedge themselves against DeFi risks or take positions on different cryptocurrencies.

What are long and short contracts?

Having a “long” position in a security means that you own the security. Investors maintain “long” security positions in the expectation that the stock will rise in value in the future. The opposite of a “long” position is a “short” position. A "short" position is generally the sale of a stock you do not own.

Methodology

We are trying to figure out how users are using Opyn to long and short sqETH and how poular the use of sqETH is in the Opyn futures market. We will display the following metrics:

• Daily/total Squeeth long and short volume

• Daily/total Squeeth long and short participants

Opyn Long vs Short Option Metrics

Observations

Each day there has been between 0 and and 10 users opening sqeeth longs on Opyn. The day that had the greatest volume of long have had over 7000 sqeeth longed in out day. Since May 2021 there has been an increase in sqeeth longs. About 100 users have logged sqeeth in total.

Observations

Each day there has been between 0 and and 7 users opening sqeeth shorts on Opyn. The day that had the greatest volume of shorts have had over 8000 sqeeth longed in out day. Since May 2021 there has been an increase in sqeeth longs. About 100 users have logged sqeeth in total.

Conclusion

Since May of 2022 there has been a big increase of sqeeth has had a big increase of long and short volume while the number of users has stayed generally the same. Currently about twice as many users have longed sqeeth than shorted sqeeth.