Question:

 How many long vs short option contracts have been bought on opyn? What’s their value? Has there been any liquidations?

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Introduction

What is Opyn Squeeth?

As per their site [here](), the squeeth contract is design for users to long or short a special index like eth, as an implementation of a Power Perp.

Mechanism-wise, the squeeth(squared-eth) 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). This composability is a major advantage to the design, making it it easy to integrate squeeth into other projects.

Value of the long/short option contract:

To start with, let’s view the daily deposits made in ETH and the cumulative deposits made in the contract:

METHODOLOGY:

To calculate the long and short positions, we look at 2 major contracts- one is the purchase of OSQTH which is equivalent to purchasing a long contract and the number of mint short transactions- burn short transactions indicating the net exposure to a short contract.

For liquidations, the liquidate function (by origin function signature ) was used.

Number of Transactions for Long/Short Option Contracts:

There has been a very competitive environment for longs vs shorts as can be seen from the charts. In the beginning, users were opting for long until shorts started taking over. By number of transactions as well, as can be seen

Liquidations:

From the docs, it was found that there can be no liquidation on a long so, only liquidations on a short were possible. On querying, it was found that there were only 2 liquidations of a value of 14.6k$ and 9.6k$ respectively.

Conclusions:

1. There have been 3 instances where net shorts were much heavier than longs- In March, May and now by the amount of deposit.
2. Longs were heavier only in the beginning of 2022 until shorts started to get heavier by the amount of deposit.
3. By number of transactions, mid-April was the time when longs competed with shorts and had a slight edge
4. No liquidations can happen on a long and only twice have shorts been liquidated of values 14.6k$ and 9.6k$