Carmine Options Testnet - Step by step.

Carmine Options is an AMM enabling anyone to buy and sell options at a fair price.

For crypto funds, traders and investors who need to hedge their portfolios or trade options, this options AMM will provide a possibility to do so. Different from most competitors, this AMM allows for selling specific options directly.

We are proposing to build options AMM that will allow for both buying and selling European style options. Allowing for both buying and selling will provide superior price discovery to current competition which will result in increased trading volumes. The same process also allows for higher utilization of capital in liquidity pools.

Here is a short incomplete list of functionalities/usages that Carmine Options AMM has:

Gaining profits from token's increase in value with limited risk;
Hedging portfolio;
Trading volatility;
VIX equivalent;
No liquidation loans;
Hedging against loan liquidation;
Hedging impermanent loss;
Insurance against game commodities price drops;
Insurance against price drops of NFTs;
Speculation on price decreases with limited risk.

Tokenomics:

12.5% to liquidity providers — Will be distributed within the first 5 years with most of the tokens distributed early. This is meant to incentivize the liquidity providers as much as possible and to reward the early once more.
5% through airdrops — This will be distributed in multiple airdrops, distributed by activity on the platform, socials etc. Each airdrop will have different conditions specified during the previous airdrop (i.e at the end of each period that ends with an airdrop, the conditions to be eligible in the next one will published). The purpose of this is to be very flexible and adjust the incentives based on short term needs, whereas the other “token allocation sections” should be more stable over time.
12.5% to traders — Will be distributed within the first 5 years with most of the tokens distributed early. This is meant to incentivize trading hence fees collection as much as possible and early traders will be rewarded more.
10% to security pool — Will be important in v2 to allow users and pools to leverage their trades.
10% to community projects —Projects that will improve the protocol experience. From education, marketing, etc to projects that will build on top of the AMM. This will be subject to further votes. Will not be used to finance development done by the core team.
10% as initial capital to the treasury — Tokens set aside to potentially be sold off to users to help finance the development done by the core team or for audit(s). This is meant to be a back up and might never be sold off. Will be subject to voting.
20% will be distributed to investors
20% will be distributed between the core team members — During the first 8 months 8% of tokens are distributed to the development team (ending January 2023). Since February 2023 each month 0.75% will be distributed each month. Additional changes are subject to the agreement between the team memebers with the goal to maximize the success of the protocol. We expect to further decrease the size that gets distributed to the team each month.

The project is at an early stage and the possibility of getting awards and roles in discord is very high. 5% of tokens from the total offer are allocated to early followers and active users. At the moment, there are three types of activities that are likely to be considered for future awards. They are the Testnet, a bounty program on the Crew3 platform and activities on Discord. These are what we will talk about in our guide.

How to participate?

Installing the wallet

You need to install one of these wallets: ArgentX or Braavos;

Claim testnet tokens

Go to Faucet, specify your wallet, pass the captcha check and make a request;

Go to the next step.

Testnet site

Go to site, connect your L2 wallet;

Go to the next step.

Trade

Go to “Trade”;

Choose a position for your bet, there are four options: LONG-CALL/LONG-PUT & SHORT-CALL/SHORT-PUT;

Select the size of the option you want and click on the "BUY FOR ETH" button;

Confirm the transaction in the wallet;

Done. Go to the next step.

Close Option

Go to "My Position", choose the size of the position and click on "Close";

Confirm transaction in the wallet;

Done. Go to the next step.

Withdraw Liquidity

Go to "Staking", select the amount of liquidity to withdraw and click on the "Withdraw" button;

Confirm the transaction;

Finished. Testnet is over.

Testnet Feedback

Join their Discord and get verified;
In the #testnet tab, leave the address of your wallet, from which you tested the application, and write feedback about your experience with the platform. There you can also point out the errors you found during testing;

Perform tasks on crew3

Go to the main project page on crew3;
Complete tasks and increase your level. There is a good chance that these tasks will be one of the criteria for airdrop!