Our beloved Squeeth is retiring. It’s time for Opyn Markets to take over.
After almost 1000 days since inception — one of the greatest experiments of power perps, trading over 1.2 billion+ dollars of ETH exposure — Squeeth will shutdown. The Squeeth protocol shutdown is scheduled for 16:00 UTC, November 4, 2024 as Opyn Markets prepares for launch.
Until then, the Squeeth protocol will function normally, meaning positions can be opened and closed at users’ discretion and Squeeth will continue to track ETH². At shutdown, all positions will close with zero fees and no price impact.
Here’s what it means for Squeeth (oSQTH) and Opyn, and current users
Opyn is now transitioning to new product offerings, building to bring users a more comprehensive and agile power perp product suite with Opyn Markets.
Loyal Squeeth users have something special coming their way! OG Squeethers, Squeethers who close positions at shutdown, large Squeethers, and Opyn Market migrators are all included.
Exclusive rewards, trading fee rebates, and early Opyn Markets access are on the horizon.
Stay tuned for updates on 𝕏!
Until then, Squeeth trading and the Crab strategy will continue to function normally, meaning positions can be opened and closed at users’ discretion and Squeeth will continue to track ETH².
At shutdown, all positions will close with zero fees and no price impact.
This is not a goodbye, Squeeth will live a more fulfilled life in Opyn Markets that is pioneering power perps with permissionless deployments and unmatched capital efficiency.
Imagine a permissionless protocol where Squeeth coexists with Squ(st)eth (for stETH), Squitcoin (for Bitcoin), Squiniswap (for Uniswap), etc., along with Uniswap LP perps (0.5-perps), stablecoin perps (0-perps), and linear perps (1-perps).
What can users do with their Squeeth positions BEFORE shutdown?
Use oSQTH & Crab normally through November 4, 2024 at 16:00 UTC, meaning users can open and close positions as usual and Squeeth will continue to track the price of ETH².
What can users do with their Squeeth positions AFTER shutdown?
Redeem ETH that corresponds to the value in ETH of their position at the shutdown time from oSQTH, Crab, etc anytime from opyn.co.
Detailed Instructions to claim ETH after shutdown will be updated on the frontend of opyn.co by shutdown on 16:00 UTC, November 4 2024.
How does the shutdown affect Squeeth positions?
How will the settlement mechanism work for Squeeth?
At shutdown, the contract will capture a snapshot of the normalization factor and the ETH price at the time, effectively converting all open long and short oSQTH positions into ETH. This final value will be calculated as:
oSQTH Value in ETH = Normalization Factor * ETH Price / 10,000
For example, if the normalization factor is 0.14 and ETH is trading at $2,500, each oSQTH will be worth 0.035 ETH.
How will the price of Squeeth trade vs. the Index price of ETH² prior to Shutdown?
As Squeeth reaches its shutdown date, users can redeem their Squeeth at the ETH index price, effectively reducing the spread to zero. This happens over time because Squeeth now has an expiration date, while still paying funding until the shutdown.
This change causes the mark-to-index spread to narrow, reaching zero at shutdown, since it effectively becomes expiring without any future convexity. See image below for visualization.
Until the shutdown, Squeeth will continue to behave as expected, tracking the ETH² index price — ensuring a seamless experience for holders during this transition.
Again, all positions can be opened and closed until the shutdown date and time. After shutdown, users can redeem ETH for the converted exposure with NO price impact.
For more detailed information, refer to the Squeeth Shutdown Technical FAQ.
Have more questions or need assistance?
Visit Opyn’s Discord and ask questions in the “👴 squeeth-retirement” channel.
Stay tuned for updates on our next phase, with Opyn Markets.
Disclaimer: The nature, structure, and amounts of rebates and rewards are subject to change at any time, without prior notice. Future rewards may be modified, reduced, or discontinued entirely at the sole discretion of Opyn. We strongly recommend staying informed by joining Opyn’s discord for the latest updates.
