Thetanuts Research Challenge #1
Thetanuts Research Challenge #1
Research Challenge Topic: Designing a Theta-BTC and Theta-ETH Index Vault
🥜 Overview
For the first challenge, we will be inviting community members to investigate the best parameters for our upcoming Theta-Index vaults.
A Theta-Index vault is composed of a basket of options (either all calls, or all puts). Our internal research has demonstrated that Theta-Index will outperform the current individual option vault strategies.
Research Challenge
As part of this research challenge, community members are to identify the best parameters for Theta-ETH and Theta-BTC call and put indexes. Namely the tenor, strike and weighted allocations of the various options that will come together to form the Theta-ETH or Theta-BTC call and put indexes.
Researchers will be able to support their research through our simulator. (Details on how to use the simulator are provided below.) Our simulator will return the performance of your strategy, as well as the profit and loss series for the duration (the whole year of 2021) of the simulation.
You can view our assessment metrics and details about the research challenge below this document.
We look forward to your submissions!
🔬What should the Masters of Nut 🥜 be doing?
Produce insightful research capped at 3 pages (font type: Arial, font size: 11), including infographics/illustrations, that pertains to the construction of Theta-Index vaults.
There is no restriction or guidelines on how users should approach the construction of these vaults - unique and original perspectives are highly welcomed.
We welcome users to take a stance on the research topic. However, we do encourage users to use data and numbers to back their opinions. We believe that well-balanced research pieces with all perspectives covered will allow readers to form their own educated opinion.
Kindly cite all sources used in your research piece. We take measures to honour originality - any plagiarising pieces will be disqualified.
🤔 Why should you join this challenge?
3 things.
Publicity for winners
We will repost it on our Substack, Twitter and Discord, crediting the work back to you.
Rewards
You already know, NFTs. These NFTs will represent your contribution towards the Thetanuts Finance community. Additionally, these NFTs holders may have but not limited to early or/and exclusive access to Thetanuts’s structured products, awesome rewards and tokens (after IDO).
Making connections with the DeFi structured products industry players
We are constantly seeking talent to advance what we do. This research competition is a great entry point for you to meet the bright minds of the space.
💸 Rewards
Qualifying pieces will be streamlined into three categories.
Assessment Framework
(1) Giga Brain, (2) Middle curve, (3) GGWP. Based on the category of the research, the relevant tier of NFT will be sent to the researcher. Research pieces with less than 5 marks will not be eligible for any rewards.
🧠 Intellectual Property Rights
Thetanuts will assume IP rights over all research pieces that are published on our platforms. We will not edit the contents of your research article except for wordsmithing for better readability, and adding a “Not Financial Advice” disclaimer at the end of all research articles.
The authorship of the research article will be attributed to the original writer, alongside the writer’s social media handles.
⌛ Research Cycle Details
All research cycles will last for 14 days with a 7 day cooldown (for marking), unless stated otherwise. Please note that your discord ID has to be correct.
Start of Research cycle
The research challenge starts on 14 March, Monday, 15:00 UTC. The Thetanuts team will announce the topic of the research challenge on our research challenge channel and you will need to click on a reaction. Upon clicking the reaction, you will receive a role - “Research Challenger: <TOPIC>”.
You are to submit your research pieces by 28 March, Monday, 15:00 UTC, exactly 2 weeks from when the challenge starts.
The provision of relevant data and simulation would be via an API link - https://kc5d9h32ma.execute-api.ap-southeast-1.amazonaws.com/dev/backtest. Read below to learn how to use our API link + Example of API Call.
During the Research Cycle
You can clarify on the topic anytime in the “Research Challengers” channel. NO DM-ing. All clarifications will have to be made in public to ensure that there is no information asymmetry among researchers.
End of Research Cycle
Email your research to research@thetanuts.finance before the ending time of the cycle. All incoming research pieces after the ending time will not be accepted.
In your email, please place “Thetanuts Challenge - <TOPIC>: <DISCORD NAME>” as the subject. For example, “Thetanuts Challenge - Designing a Theta-BTC and Theta-ETH Index Vault: Popcorn #0000”.
Post Research Challenge
The Thetanuts research team will review all submissions and grade them.
The results of each research piece would be published on a leaderboard.
The respective rewards & NFTs would be distributed to the respective participants.
Publishing
The winning article will be published on our twitter, substack, discord and relevant platforms.
How to use our API link
Tool (Rest Ninja) Link: https://restninja.io
Actual API Link: https://kc5d9h32ma.execute-api.ap-southeast-1.amazonaws.com/dev/backtest
Sample Research Params
{
"tenors": [7, 14, 28],
"asset": "BTC",
"vault_type": "P",
"tenor_weights": {
"7": 0.25,
"14": 0.5,
"28": 0.25
},
"upper_delta": 0.3,
"lower_delta": 0.2,
"backup_delta": 0.1
}
API Parameter Reference
