Sigma
Hooks-based options & Liquidity-as-a-service
About
The problem it solves Hook-based options: options liquidity fragmentation and UX (high cost and hard to understand). Synthetic options are achieved by providing liquidity and dynamically adjusting our positions. Call option: 1) 50% of the capital to the ETH-USDC pool (upside only) 2) 50% as collateral on Morpho to gradually borrow more USDC to buy more long power perps (oSQTH) as ETH price continues to grow Put option: 1) 50% of the capital to the ETH-USDC pool (downside only) 2) 50% as collateral on Morpho to gradually borrow more ETH to buy more short power perps (oSQTH) as ETH price continues to fall. Liquidity-as-a-service - the combination of call and put options within the lending/borrowing market on Morpho to bootstrap liquidity for brand-new ERC-20 tokens.
How it's made
Challenges we ran into Integration of Uniswap V4 and Morpho as Uniswap V4 doesn't have much technical documentation/examples and is still under development.