DeOrderBook is a next-gen, truly trustless optionality protocol that embodies the concept of ‘Trade to Earn’ by allowing users to profit simply by placing limit orders on the platform, fully leveraging their investment power.
To place one of these limit orders, or ‘DeOrders’ as they are known within the protocol: users must first mint their supported cryptocurrencies for free into HODL tokens. At its launch on Ethereum, DeOrderBook supports $WBTC and $USDC.
Users can then use their freshly-minted HODL tokens to place a DeOrder: generating SNIPER and BULLET tokens. If you missed our last article on SNIPER tokens, don’t worry: we’ll be explaining how SNIPER and BULLET tokens interact with each other as intertwined parts of each DeOrder.
SNIPER Tokens
SNIPER tokens represent the option writer obligation, while BULLET tokens represent the option buyer’s right to exercise. Each of these tokens is encoded with the user’s chosen strike price and expiry date.
The full claim to the original HODL tokens that were used in placing the DeOrder is contained with the SNIPER token: and it is this token that is distributed automatically to the user who has placed the DeOrder.
BULLET Tokens
On the other hand, BULLET tokens allow savvy market participants to execute your DeOrder in a decentralised fashion according to principles of economic rationality and game theory.
Unlike SNIPER tokens which go to the user when a DeOrder is made, BULLET tokens are sent to the DeOrderBook team when generated. 20% of these BULLETs are retained as fees by the team, while the remainder is distributed by a daily BULLET Raffle amongst eligible users who have locked the threshold amount of $DOB, the native governance token of DeOrderBook. $DOB is earned at a steady rate by users waiting for their DeOrders to reach the chosen expiry date.
The BULLET Raffle list is openly viewable for all users on the protocol, but claiming BULLET rewards is only available to those who hold a Gerege Gold NFT. The DeOrderBook NFT program will be further explained in the next section.
If a user locks 1000 locked $DOB within a 24 hour period, this meets the BULLET claiming threshold and entitles them to claim 1 ticket to the BULLET Raffle for that day. Tickets must be manually claimed and will expire if the right to claim is not exercised.
The larger the share of $DOB locked in the raffle, the more valuable the ticket will be — entitling the user to a larger proportion of BULLETs compared to users who have locked less.
Claiming BULLETs with Gerege Gold NFTs
DeOrderBook is launching its core product with a dual-tier series of NFTs entitled ‘Gerege’. Gerege NFTs are available for optional purchase for DeOrderBook users.
As possessing a Gerege once opened up the Mongolian Empire to wandering traders, holding Gerege NFTs opens up the full potential of the DeOrderBook platform to users.
Only users that hold a advanced-tier Gerege Gold NFT will be uniquely able to claim a share of BULLET tokens. Besides a host of additional perks and benefits granted to NFT holders, those users will also unlock full access to the functionality of the BULLET Bazaar, a P2P marketplace on the platform where users can trade BULLETs and utilize a special interface where pricing, sizing and order status can all be adjusted for maximum control over trading advantages.
At launch, Gerege Gold NFT holders will be able to to sell BULLET tokens at the BULLET Bazaar: allowing for exclusive benefits such as combining matching SNIPER and BULLET tokens to unwind DeOrders before the expiry date. Whitelisted addresses will additionally be able to buy BULLETs at the BULLET Bazaar.
This key advantage of access to BULLET tokens opens up an entirely new world of arbitrage opportunities and even more ways to profit on DeOrderBook.
Stay tuned for our next article, which will explain more about the utility of the DeOrderBook protocol as a hedge against volatility as we head towards the second phase of our currently ongoing Open Beta!
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