Preparing for V2 Launch and V1 Downgrade

It's been 10 months since we launched Primitive V1 at the end of December in 2020. The first markets that came online in Febraury quickly brought in over $1m in TVL within the first week. This was thanks to our stakeholders, early supporters, and early users.

After a month of the live protocol, it became apparent that the V1 system, while novel, was not going to be the leap forward in the DeFi options space that we wanted to see. Understanding these faults, the V1 Protocol was left behind, without resources. In these early days of DeFi, there is no room to allocate resources in an unfocused way, especially with this infinitum of opportunity at our fingertips.

Onward to V2

The Primitive team has expanded to five full time members, and an additional five part time contributors. Over the past six months, we've developed a new DeFi lego that we are excited to introduce to the space. These development efforts are wrapping up as we put the finishing touches on V2. While we have mentioned it as V2, its fundamentally a new Protocol, the Primitive Protocol, and we are excited to be sharing more about it in October.

With that said, the most popular V1 markets expire today! Keep in mind, Primitive V1 will live on as a permissionless system, which anyone can build on.

What do I need to know about V1 markets as a user?

Use the app here to close positions: https://app.primitive.finance

Liquidity Providers (SLP/PRM/RDM/Underlying Holders)

All the LPs will have some balance of two of the option tokens: PRM and RDM. When options expire, the PRM loses its claim to be exercised. Therefore, the RDM token is the claim to the underlying tokens.

How to exit an LP position

LPs can visit the interface and remove their liquidity as they normally would by selecting an open position. Removing liquidity through the Primitive interface will also close the option position, and return the underlying tokens (or ETH).

Before the transaction, the LP tokens must be approved, which is why we request your permit signiture.

Option Buyers (PRM/Long Holders)

If you hold PRM tokens, the long options, these expired worthless.

Option Sellers (RDM/Short Holders)

If you only have RDM tokens, these can burned in exchange for their underlying tokens. For every strike price amount of RDM tokens, there will be 1 underlying token claimable.

How to close a short position

To close your RDM tokens, visit the interface and select a position to close. This will walk you through the following flow:

1. Approve RDM tokens to be burned
2. Close position by burning RDM tokens, and receive underlying tokens

Rewards

We recently tweeted an art piece by Eren Arik. This will be the art on an NFT we will be distributing to all of our V1 users.

Distribution

We've taken a snapshot of our V1 users and will be making these claimable by them before the V2 launch. Look out for our post that details what perks come with the NFT.

Perks

One of the perks of the NFT is earlier access to the products we are working on.

Art by Eren Arik

Make sure to follow the artist on twitter:

by @erenomoto

∇ pic.twitter.com/jE86PRuqfW

— Primitive (@PrimitiveFi) September 1, 2021

AMA in the Primitive Discord

We have an open channel that can be used by anyone to ask the Primitive team questions, or for help, join here (make sure to get past the bot guard): https://discord.gg/C6X4zCM4se

Resources

Addresses of Related markets

LP Pairs:

Weth Call SLP: 0x2ACBF90fDff006Eb6EaE2b61145B603e59ade7d2
Weth Put SLP: 0xfE7f6780A3C19aef662edD7076F63C2Ae99A2196
Sushi Call SLP: 0xBFf6CbF2e7d2cd0705329c735a37bE33241298e9
Sushi Put SLP: 0x45e185Be5d2FE76b71fE4283EaAD9679E674c77f

Primitive Smart Contracts:

Weth Call PRM: 0x5b419b581081F8E38A3c450AE518E0aefD4a32B4
Sushi Call PRM: 0x875F1F8E7426B91c388807D5257f73700D04d653

Core Proxy Trader: 0xc1de48E9577A7CF18594323A73CDcF1EE19962E8
Primitive Router: 0x9264416B621054e16fAB8d6423b5a1e354D19fEc

Use the App

The open-source and free interface to interact with the Primitive protocol is here: https://app.primitive.finance/

Follow our Twitter and Medium for Updates!

https://twitter.com/PrimitiveFi

https://primitivefinance.medium.com/

Risks

We have not proven the protocol is secure. That will take time. We have put our efforts into securing the protocol’s contracts through extensive testing and third party review. With that said, keep in mind it is high-risk to use the protocol and that a material loss of funds can occur at any time.