This is part 1 in a series on Constant Function Market Makers and on-chain derivatives. If you are not familiar with financial derivatives, I recommend you check out this page for a quick definition. It will help you make sense of the concepts discussed in this article.

Since TheOpenDao and the $SOS token has been the talk of the town on Crypto Twitter this christmas, I thought I could write down some thoughts on the topic. I will also give my view on the optimal decision if you were airdropped some ‘responsibility’.