Examples

Generic Examples

Long sqOSMO

Let's make an example of how the value of long sqOSMO position changes with the price of the underlying OSMO.

@ timepoint 1
osmo = $1.1
osmo^2 = 1.1 * 1.1 = 1.21

sqOSMO = (1.1/1.21) * scale_factor = 9090.90909

Now let's see what happens in OSMO increases in value by 2x.

@ timepoint 2
osmo = $2.2
osmo^2 = 2.2 * 2.2 = 4.84

value of sqOSMO = (4.84 * 9090.90909) / scale_factor = 4.399999

We can see the value of our position has increased 4x for an increase in 2x of OSMO.

Next let's see the alternative if OSMO decreases in value by 0.5x.

@ timepoint 3
osmo = 0.55
osmo^2 = 0.55 * 0.55 = 0.3025

value of sqOSMO = (0.3025 * 9090.90909) / scale_factor = 0.274999