Diving into the Atlantic 🌊
Exploring the Dopex Ecosystem on Arbitrum
Few understand that memes are the source of energy that keeps crypto one of the most entertaining industries to be in. Even fewer understand how powerful the combination of memes and cutting edge tech can be when mixed together.
In this edition of the Arbitrum Alpha we’ll take a look at how deep the Dopex ecosystem goes, starting with Dopex.
Enter Dopex.
Standing at over $20m in TVL, Dopex currently stands as the biggest options protocol on Arbitrum with an enormous community backing it, alongside an incredible amount of builders.
Dopex currently has two tokens, $DPX and $RDPX. $DPX is the Dopex governance token used that accrues fees coming from the protocol. While $RDPX is the Dopex rebate token that is distributed to users for any losses realized by any of the pools.
Dopex’s flagship product is their Single Staking Option Vaults (SSOVS) product. Yield can be earned by locking up tokens in a SSOV for a specified amount of time. Alongside this they also have products such as farms for those providing liquidity for $DPX and $RDPX on Sushi, rate vaults, TZWAP, and an OTC market.
One of the anticipated products that will be coming soon are Atlantic options. In a nut shell, Atlantics offer superior yield, higher capital efficient loans when pairing with other DeFi primitives, act as a great way for Dopex to generate fee revenue, an additional building block for the projects within the Dopex ecosystem, and tons more!
Read more about Atlantics here.
JonesDAO
Initially built atop of the Dopex, JonesDAO offered vaults that automated the options strategy process. Making using their platform as simple as a one-click yield generating machine! As of July 2022, they have vaults covering $ETH, $gOHM, $DPX, and $rDPX.
What makes JonesDAO even more interesting is that once you deposit your funds into a vault, you’re given $j(asset), essentially a liquid token that represents your deposit in the Jones vaults.
This means that you can put your new assets to work generating even more yield, while the base collateral is in the vault. This can be done on their staking section of their site which also features more farms for Sushi LPs.
A very exciting product that Jones just recently announced are Metavaults. 👀 They’ll be able to take advantage of the price action of the underlying assets deposited into the vaults resulting impermanent loss causing less of an impact, more advanced strategies that only take 1-click to enter, and even more consistent liquidity on Dopex during volatile market conditions. You can read more about Metavaults here.
It’s safe to say that if Dopex intends on reaching the masses, JonesDAO will pave the way for this.
PlutusDAO
The final project in the Dopex trifecta is PlutusDAO. Launched in May of 2022, PlutusDAO describes itself as “The Layer 2 Governance Blackhole”, pretty badass if you ask me 😉.
Anyways, PlutusDAO acts as a governance aggregator for the Dopex ecosystem (including JonesDAO), maximizing the rewards that come from holding $DPX or $JONES.
Essentially you convert your $DPX or $JONES into $plsDPX or $plsJONES, a liquid version of the locked assets. Those can then be staked for rewards in a multitude of tokens depending on which one you’re staking.
What’s the point of all this redistribution of existing assets and new assets? Well any token locked into Plutus is there forever. This means any $DPX and $JONES locked into the Plutus contracts are essentially controlled by the $PLS holders. As of July 2022, PlutusDAO owns 8.79% of $DPX and 9.27% of $JONES…. sheeeeeesh!
Apart from swallowing the Dopex’s and Jones’ governance, they’re also in the process of making something called “Dollar Maxi Vaults” that aim to generate high yield at the risk of of an increased chance of impermanent loss. You can read more about these vaults here.
Conclusion
It’s safe to say that the Dopex ecosystem has by far one of the most solid foundations I’ve seen in crypto. It’s very rare to see a project do so well that you have multiple projects spring up to both support it and pave their own way in this DeFi.
One thing I didn’t mention this time around are the Diamond Pepes, maybe I’ll release something when gen 2 comes out 😉.
If you’re interested in getting involved with any one of the Dopex ecosystem projects mentioned in this article, feel free to join their communities below and make sure to share this article with your favorite Dopexians!
The Atlantic awaits you, anon. Also wen $dpxusd?
BTW i'm a pretty trash writer so if you see any mistakes pls let me know :)