Xeon Protocol
Pioneering a Universal ERC20 Hedging and Lending Ecosystem.
Advanced OTC – Equity Swaps, Call Options, Put Options, Crypto Lending.XEON Mission
Ecosystem Tools
Equity Swaps - Neon Hedge Platform
Call-Put Options - Neon Hedge Platform
Crypto Lending - Neon Lend Platform
Use Cases
Call Options
At BITCOIN price $10 per token, Capo deposits 100 BITCOIN in the contract as the underlying asset and collateral.
He writes a OTC Call Option: Underlying Assets 100 BITCOIN tokens, Valued at $1000, Cost $200, Strike Price $12
Saylor, thinks BITCOIN price will be over $12. He deposits the cost of $200 as collateral and buys the call option.
Saylor then takes the call option To guarantee Capos's bag at current value if price goes over $12 in 7 days.
At the end of the 7 days, BITCOIN price is above $20, a gain of $8 per token in the option.
Saylor can choose to exercise the call option or take the profits only; he could transfer $1200 USDT/WETH to Capo in exchange for the 100 BITCOIN tokens put in deposit; or alternatively take the profit only, which is the current bag value $2000 minus the strike value agreed $1200, i.e. $800 profit
Settlement paid in paired currency of the underlying asset: (WETH, USDT, USDC) initial pairs
The option position is closed between Capo and Saylor. Had the price of BITCOIN fell to $5 per token; Saylor would lose his deposit of $200 to Capo. The cost is the maximum loss Saylor is exposed to no matter the drop in price.
Put Options
At BITCOIN price $10 per token, Saylor deposits 100 BITCOIN in the contract as the underlying asset and collateral.
He writes a OTC Put Option: Underlying Assets 100 BITCOIN tokens, Valued at $1000, Cost $200, Strike Price $9
Capo thinks Saylor is wrong, and he could double his capital in 2 weeks. He deposits $200 as collateral.
Capo buys the put option and thinks he'll double his cost (max gain to put option taker), if price goes below $9 in 14 days.
At the end of the 2 weeks, BITCOIN price is above $10 and at $15. A loss of $5 per token in the option.
Saylor takes the entire cost paid by Capo (max loss). Capo profits nothing from the put option
Settlement paid in paired currency of the underlying asset: (WETH, USDT, USDC) initial pairs
The option position is closed between Capo and Saylor. Had the price of BITCOIN fell to $5 per token; Saylor would lose the difference in value to Capo. Maximum gain to the option taker is the option cost ($200 in this example). The cost is the maximum loss Saylor is exposed to no matter the drop in price.
Equity Swaps
Mike deposits 1000 VELA tokens in the contract as the underlying asset and collateral for the Swap.
Vela is worth $10 so the swap is worth $1000, expiry 7 days time, and he priced the Swap at $100 for buyers.
Saylor, thinks VELA price will go over $10 in 7 days. He deposits collateral $1000 in paired currency.
Saylor buys the Equity Swap with a nortional of $1000; he agrees to take the risk (gains or losses) on Mike's tokens for 7 days.
At the end of the month, VELA price increased to $20
Saylor found himself in huge profits; all gains accrued in token value are now Saylor's. Current value of Mike's tokens is $2000 and Saylor guaranteed her at $1000 total value/notional.
Settlement paid in quote or paired token.
Mike pays $900 in underlying tokens, stables or WETH to Saylor. The Swap is now closed between Alice and Saylor. If the price had fallen to $5 per token, Mike's bags would be worth $500. Saylor would have to pay the difference; $1000 - $500 (current value) to Mike.
How it Works
Deposit ERC20 Assets
Holder decides to move capital from his wallet to our vault to hedge it.
Write Hedge
Holder writes a call/put option or equity swap using deposit as underlying asset & collateral.
Settlement
Settlement executed on expiry only. Holder can move profits/capital back to wallet or into more deals.
vault token storage
this illustrates the handling of tokens inside our vault, during the 3 stages of a OTC deal.
userBalance mapping
.deposited struct
deposit balance incremented for user in mapping. They are now in the vault to use for writing or buying hedges or withdrawal.
userBalance mapping
.lockedInUse struct
locked-in-use balance incremented for user in mapping. Tokens are now locked in a deal as collateral awaiting settlement only.
userBalance mapping
.deposited struct.withdrawn struct
depending on hedge outcome, writer and taker can have their deposit incremented with payoff, or withdrawn balance incremented with loss.
Deposit ERC20 Assets
Speculator decides to move capital from his wallet to our vault to buy hedges.
Buy Hedge
Speculator buys a call/put option or equity swap using deposit to match cost & collateral.
Settlement
Settlement executed on expiry. Speculator can move profits/capital back to wallet or into more deals.
Protocol Engineering
Aesthetic UI
Project Timeline
: Boom
March 2023 – Concept inception. Feasibility hackthon done to build a core ERC20 vault in solidity, inspired by Unicrypt. Sample hedge cards designs made. Concept evolution through iterations took over.
: Zenith
August 2023 – Protocol smart contracts complete, dapp front-end design modules and page scripts complete. Initial Alpha testing begins. Updates to protocol and UI, emphasis on UX & functionality.
: Deep Space
Q4 2023 to Q1 2024 – Internal testing begins - Alpha testing updates intergrated. Whitepaper V1, Documentation, Closed rationed Initial product previews, Team restructuring, Launch partnerships reachout.
: Stargate
Q2 2024 – Website goes public. Github goes public. Testing expanded to limited testers. Testnet Launch plans. Token Launch Event - Ethereum Mainnet or Arbitrum. Launch public testnet.
: Aurora
Q3 2024 – Testnet conclusion, Mainnet launch strategy rollout, Team expansion, Project partnerships to onboard all popular ERC20s, Adding features from beta feedback to Protocol and Dapp.
: Grand Unification Epoch
Q3 to Q4 2024 – Mainnet rollout. Expansion to other Chains. Apply to join L2 Blockchain Developer Incentives programs. Mass adoption marketing strategy rollout. Updated Whitepaper and timeline.
Ecosystem Token
Click n Drag around galaxy.. Read the Docs or visit our ecosystem to learn about our platforms and token utility..
TOKEN HAS NOT BEEN LAUNCHED
– – – Total Supply
Launchpad Supply : --%
Vested Supply : --%
Hard Cap : – – ETH
Taxes
LP, Rewards, Operations
DEX Launch
Initial Market Cap : – – ETH
Initial Liquidity Pool : – – ETH