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Dual-Market Architecture

고지 사항: 이 백서는 영어 버전이 공식 문서입니다. 다른 언어 버전은 참고용입니다。


PIPO operates a dual-market system where Call and Put warrants form complementary sides of a unified liquidity ecosystem. This architecture enables:

  • Two-way price discovery (bullish + bearish sentiment)
  • Natural hedging between market sides
  • Sustainable liquidity through symbiotic incentives
  • Risk distribution across participant types

┌─────────────────────────────────────────────────────────────────────────┐
│ PIPO DUAL-MARKET ARCHITECTURE │
├─────────────────────────────────────────────────────────────────────────┤
│ │
│ CALL MARKET (Bullish) PUT MARKET (Bearish/Hedge) │
│ ═══════════════════════ ═══════════════════════ │
│ │
│ ┌─────────────────────┐ ┌─────────────────────┐ │
│ │ CALL BUYERS │ │ PUT BUYERS │ │
│ │ ───────────────── │ │ ───────────────── │ │
│ │ • Retail Degens │ │ • Employee Hedgers │ │
│ │ • Tech Believers │ │ • Bearish Speculators│ │
│ │ • HNW Bulls │ │ • Portfolio Hedgers │ │
│ └──────────┬──────────┘ └──────────┬──────────┘ │
│ │ │ │
│ │ USDC │ USDC │
│ ▼ ▼ │
│ ┌─────────────────────┐ ┌─────────────────────┐ │
│ │ CALL AMM │◄──────────►│ PUT AMM │ │
│ │ (Price Discovery) │ Arbitrage │ (Price Discovery) │ │
│ └──────────┬──────────┘ └──────────┬──────────┘ │
│ │ │ │
│ │ Warrant Tokens │ Warrant Tokens │
│ ▼ ▼ │
│ ┌─────────────────────┐ ┌─────────────────────┐ │
│ │ CALL ISSUER │ │ PUT ISSUERS │ │
│ │ ───────────────── │ │ ───────────────── │ │
│ │ • Platform (SPV) │ │ • Platform Pool │ │
│ │ • 100% Share-Backed│ │ • KYB Writers │ │
│ └──────────┬──────────┘ │ • 100% Cash-Backed │ │
│ │ └──────────┬──────────┘ │
│ │ │ │
│ ▼ ▼ │
│ ┌─────────────────────┐ ┌─────────────────────┐ │
│ │ SPV VAULT │ │ USDC VAULT │ │
│ │ (Stock Collateral) │ │ (Cash Collateral) │ │
│ └─────────────────────┘ └─────────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────┘

AttributeCall MarketPut Market
DirectionBullishBearish/Hedge
Buyer ProfileSpeculators, believersHedgers, bears
IssuerPlatform onlyPlatform + KYB writers
CollateralSPV sharesUSDC
SettlementCash or PhysicalCash only
Primary UseUpside speculationDownside protection
Yield OpportunityNone for writersPremium income

┌─────────────────────────────────────────────────────────────────┐
│ CALL MARKET FLYWHEEL │
├─────────────────────────────────────────────────────────────────┤
│ │
│ ┌──────────────┐ │
│ ┌────────▶│ Hot Event │─────────┐ │
│ │ │ (SpaceX IPO)│ │ │
│ │ └──────────────┘ │ │
│ │ ▼ │
│ ┌───────┴───────┐ ┌───────────────┐ │
│ │ More Trading │ │ Retail FOMO │ │
│ │ Volume │ │ Attention │ │
│ └───────┬───────┘ └───────┬───────┘ │
│ │ │ │
│ │ ▼ │
│ │ ┌───────────────┐ │
│ │ │ Buy Call │ │
│ │ │ Warrants │ │
│ │ └───────┬───────┘ │
│ │ │ │
│ │ ┌──────────────┐ │ │
│ └─────────│ Price Goes Up│◄────────┘ │
│ │ (AMM Impact) │ │
│ └──────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────────┐
│ PUT MARKET FLYWHEEL │
├─────────────────────────────────────────────────────────────────┤
│ │
│ ┌───────────────┐ ┌───────────────┐ │
│ │ Call Volume │────────▶│ Platform Has │ │
│ │ Generates │ │ Cash Reserves │ │
│ │ Revenue │ └───────┬───────┘ │
│ └───────────────┘ │ │
│ ▼ │
│ ┌───────────────┐ │
│ │ Platform Seeds│ │
│ │ Put Pool │ │
│ └───────┬───────┘ │
│ │ │
│ ▼ │
│ ┌───────────────┐ ┌───────────────┐ │
│ │ KYB Writers │───────▶│ Put Liquidity │ │
│ │ See Yields │ │ Available │ │
│ └───────────────┘ └───────┬───────┘ │
│ ▲ │ │
│ │ ▼ │
│ │ ┌───────────────┐ │
│ │ │ Employees Can │ │
│ │ │ Hedge (Buy Put)│ │
│ │ └───────┬───────┘ │
│ │ │ │
│ │ ▼ │
│ │ ┌───────────────┐ │
│ └────────────────│ More Premium │ │
│ │ For Writers │ │
│ └───────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────────────────┐
│ DUAL-MARKET FLYWHEEL │
├─────────────────────────────────────────────────────────────────────────┤
│ │
│ CALL SIDE PUT SIDE │
│ │
│ ┌─────────────┐ ┌─────────────┐ │
│ │ Retail │ │ Employee │ │
│ │ Attention │ │ Need Hedge │ │
│ └──────┬──────┘ └──────┬──────┘ │
│ │ │ │
│ ▼ ▼ │
│ ┌─────────────┐ ┌─────────────┐ │
│ │ Buy Calls │ │ Buy Puts │ │
│ └──────┬──────┘ └──────┬──────┘ │
│ │ │ │
│ ▼ ▼ │
│ ┌─────────────┐ ┌──────────┐ ┌─────────────┐ │
│ │ Platform │───────▶│ PLATFORM │◄────────│ Premium │ │
│ │ Revenue │ │ TREASURY │ │ Income │ │
│ └─────────────┘ └────┬─────┘ └─────────────┘ │
│ │ │
│ ▼ │
│ ┌─────────────┐ │
│ │ More SPV │ │
│ │ Inventory │ │
│ └──────┬──────┘ │
│ │ │
│ ┌────────────────────┼────────────────────┐ │
│ │ │ │ │
│ ▼ ▼ ▼ │
│ ┌─────────────┐ ┌─────────────┐ ┌─────────────┐ │
│ │ More Calls │ │ More VCs │ │ More Puts │ │
│ │ Available │ │ Want Access │ │ Available │ │
│ └─────────────┘ └─────────────┘ └─────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────────────┘

In traditional options, put-call parity dictates:

C + PV(K) = P + S
Where:
C = Call price
P = Put price
K = Strike
S = Current underlying price
PV = Present value

For PIPO warrants, a modified relationship exists:

Call(K) + Discount(K, T) ≈ Put(K) + Oracle(S)
Where:
Oracle(S) = Current valuation from oracle
Discount = Time/risk adjustment

If prices diverge significantly, arbitrageurs can:

  1. Call too cheap: Buy call, sell synthetic (borrow + short put)
  2. Put too cheap: Buy put, sell synthetic (buy call + lend)

This keeps both markets in relative alignment.


PIPO allows unified LP positions across both markets:

Unified LP Position
├── Deposit: 100 USDC
├── Allocation: 60% Call pool, 40% Put pool
├── Auto-rebalancing: Based on utilization
└── Single LP token representing both exposures
  • Simplified UX for LPs
  • Better capital efficiency
  • Automatic rebalancing to higher-demand side
  • Combined fee earning

Initial Market Structure
├── Call Market: 90% of volume
├── Put Market: 10% of volume
├── Put Writers: Platform pool only
└── Focus: Retail speculation, FOMO
Maturing Market Structure
├── Call Market: 60% of volume
├── Put Market: 40% of volume
├── Put Writers: Platform + 10 KYB writers
└── Focus: Hedging narrative, yield seekers
Mature Market Structure
├── Call Market: 50% of volume
├── Put Market: 50% of volume
├── Put Writers: Platform + 50+ KYB writers
└── Focus: Full price discovery, market making

  • Share sourcing/inventory risk
  • Custody risk
  • Settlement execution risk
  • Directional risk (valuation decline)
  • Opportunity cost (locked capital)
  • Liquidity risk (can’t exit early)
  • Oracle failure/manipulation
  • Smart contract bugs
  • Regulatory changes

ParameterCurrentGovernance
Call trading fee0.3%DAO vote (future)
Put trading fee0.3%DAO vote (future)
Writer minimum$50KAdmin
LP allocation ratio60/40Automatic
New underlying listingAdminDAO vote (future)