Dopex
Dopex is an options protocol on Arbitrum built around two key innovations: Atlanticstraddle (perpetual, early-exercisable option tokens) and SSOV (Single Staking Options Vaults) that let LPs passively provide liquidity across multiple option strategies. The protocol uses option decks - bundled packages of multiple strikes and expiries - to give traders efficient access to volatility surfaces. The RDpx token provides synthetic exposure to the vault's Greek risk profile.
? Dopex Architecture vs Lyra
SSOV Vault Flow
A Single Staking Options Vault accepts deposits of a single asset (e.g., ETH) and automatically deploys it as collateral backing written options across multiple strikes and expiries. The vault aggregates all Greek exposure and manages hedging positions.
Atlanticstraddle vs European Options
The key difference between Atlantic (Dopex) and European (Lyra) options: Atlantic options can be exercised at any time, not just at expiry. This means the holder never loses the time value of their option - they can wait for the perfect moment to exercise.
Simpler pricing (fixed expiry)
No early exercise risk
AMM pricing more tractable
Must price early exercise optionality
Holder retains time value flexibility
More complex AMM mechanics
? RDpx Token - Greek Risk Exposure
RDpx is a token that gives holders synthetic exposure to the vault's portfolio of written options. When you hold RDpx, you're effectively long gamma and short theta across the vault's entire book. As the vault's positions profit from time decay and lose from large moves, RDpx adjusts accordingly.
? Option Deck Builder
Option decks package multiple strikes and expiries into a single position. A deck gives you exposure to the full volatility profile - downside protection and upside participation - in one transaction. Toggle deck components and see the combined payoff.
Vault Strike Distribution and Greek Exposure
The SSOV vault deploys LP deposits across a range of strikes. Use the slider to see how the vault's aggregate Greek exposure changes as the market moves.
Atlanticstraddle: perpetual options
Traditional (European) options expire at a fixed date - if you hold a 30-day call and ETH doesn't move, you watch your premium erode daily without any ability to act except wait. Atlanticstraddle options change this: they're exercisable at any time before a defined maturity, giving holders the flexibility to exercise when it's optimal rather than being forced to wait until expiry.
This flexibility has real value - the early exercise premium is roughly the risk-free rate times the intrinsic value foregone. For a call deep ITM, holding the option rather than exercising preserves the collateral (the strike price) and earns interest on it. In crypto, where funding rates are volatile and opportunities can vanish quickly, Atlantic options give traders more control over their Greek exposure.
For the Dopex protocol, Atlanticstraddle options mean the vault must continuously manage exercise risk - any option in-the-money could theoretically be exercised at any time, forcing the vault to settle immediately. The pricing model must account for this optionality, which typically results in Atlantic options being slightly more expensive than their European counterparts for the same parameters.
SSOV Vault Mechanics
The SSOV (Single Staking Options Vault) is Dopex's LP mechanism. You deposit a single asset (ETH, DPX, or other supported tokens), and the vault handles the rest: allocating your deposit across option writing positions, managing the Greek exposure, and distributing premium income back to depositors.
The vault's risk engine computes portfolio-level Greeks continuously. If the vault has written 100 call options at various strikes and 80 put options, the net delta might be positive or negative depending on how far spot is from each strike. The protocol can initiate hedging trades (buy/sell the underlying) to keep the portfolio delta-neutral within a target band. Gamma and vega are aggregated at the portfolio level, meaning LPs are exposed to the net Greek risk of the entire book - not just one strike.
The DPX token plays a governance role in the vault - DPX holders can vote on parameters like the performance fee, which strikes are prioritized for writing, and how aggressively the vault hedges. This gives DPX holders influence over the risk profile of the entire system.
RDpx: the Greek risk token
RDpx is a claim on the vault's Greek exposure. When you buy RDpx, you're effectively taking the other side of the vault's gamma and theta positions. The vault writes options and collects premium (earning theta), but takes on gamma risk (losing if large moves occur). RDpx holders are on the opposite side: they pay for this exposure and benefit when the vault's written options expire worthless.
The RDpx price is determined by the mark-to-market value of the vault's Greek positions. When the vault earns theta daily and IV is stable, RDpx appreciates. When vol spikes and the vault's written options go deep ITM, RDpx drops. This creates a synthetic volatility product - RDpx lets traders take a view on realized vs implied volatility without managing individual option positions.
RDpx is also used as collateral in other DeFi protocols, creating a secondary market for Greek risk transfer. A trader who wants to increase their long gamma exposure can buy RDpx; a trader who wants to reduce their Greek exposure can sell it.
Dopex V2 improvements
Dopex V2 brought several architectural improvements over V1. The Atlanticstraddle structure replaced European options, giving option tokens full ERC20 compatibility - they can be transferred, used as collateral, or composed with other DeFi primitives. The vault system was redesigned with portfolio-level margin calculations, creating netting efficiencies that reduce required capital.
V2 also introduced the concept of option decks: multi-leg positions bundled into a single tradable instrument. This reduces transaction costs for traders who want to buy a straddle (call + put at same strike) or a risk reversal (sell OTM put, buy OTM call). The deck pricing applies a discount to the sum of individual leg prices, encouraging more complex trading strategies and improving LP revenue.
The governance layer was also improved - DPX holders have more direct control over vault parameters, and the protocol can adjust performance fees and hedging aggressiveness based on market conditions. This makes the system more adaptive to different volatility regimes.
Frequently asked questions
- What is Atlanticstraddle on Dopex?
- Atlanticstraddle is Dopex's options structure where option tokens are perpetual - they never expire and can be exercised at any time before a defined maturity. Unlike European options (Lyra) which can only be exercised at expiry, Atlanticstraddle options retain time value continuously, allowing holders to exercise when optimal. This makes them more flexible than standard on-chain options but also more complex to price, as the protocol must account for optionality value beyond just time-to-expiry.
- How do SSOV (Single Staking Options Vaults) work?
- SSOV vaults let depositors stake a single asset (like ETH or DPX) and have it automatically allocated across multiple option strategies. When you deposit ETH into an SSOV, your deposited amount is used to back various written options at different strikes and expiries. The vault aggregates Greek risk across all positions and manages hedging automatically. You earn yield from the premium collected on all the written options your deposit supports, minus a performance fee taken by the protocol.
- What is the RDPX token and how does it work?
- RDpx (Rational Protocol Token) is Dopex's secondary token designed to give holders fractional exposure to the protocol's fee revenue and Greek risk. When you hold RDpx, you're effectively holding a claim on a portion of the vault's positions - you're long gamma and short theta in aggregate. The token price moves based on the net PnL of the vault positions, creating a synthetic exposure to volatility without directly managing options yourself.
- How does Dopex V2 differ from V1?
- Dopex V2 introduced Atlanticstraddle options (perpetual options), an improved vault system with better Greek risk management, and reduced LP complexity. V1 used European-style options with fixed expiries; V2 lets option tokens be exercised at any time, creating more complex pricing dynamics. V2 also added a governance optimization layer where position managers can actively adjust Greek exposure.
- What are option decks on Dopex?
- Option decks are packages of multiple option strikes and expiries combined into a single tradable instrument. A deck might contain a 30-delta call at $2,000, a 10-delta put at $1,800, and a 60-delta straddle at $2,100 - bundled as one position. This lets traders buy exposure to an entire volatility profile in one transaction rather than constructing it manually from individual strikes. The deck pricing aggregates the BS prices of all legs and applies a deck discount to encourage multi-leg trading.
- How does Dopex handle volatility pricing?
- Dopex uses external Chainlink volatility oracles to bootstrap its initial model volatility estimate, then allows competitive market makers to narrow spreads through trading activity. The protocol's risk engine maintains a portfolio-level Greek book and calculates required margin at the portfolio level rather than per-leg, creating netting efficiencies that reduce capital requirements. The model Vol is updated based on traded prices in a similar feedback mechanism to Lyra.
- What is the difference between Dopex and Lyra's architecture?
- Lyra uses a two-sided AMM with protocol-level delta hedging - the protocol acts as both market maker and central clearer. Dopex uses a vault system where LPs deposit into pools that back option writing, with option tokens as ERC20s that can be freely transferred and traded. Dopex's option tokens are more composable (they can be held, transferred, used as collateral in other protocols), while Lyra's positions are book-entry only. Dopex also supports Atlantic (early-exercise) options vs Lyra's European.