📢 #Gate Square Writing Contest Phase 3# is officially kicks off!
🎮 This round focuses on: Yooldo Games (ESPORTS)
✍️ Share your unique insights and join promotional interactions. To be eligible for any reward, you must also participate in Gate’s Phase 286 Launchpool, CandyDrop, or Alpha activities!
💡 Content creation + airdrop participation = double points. You could be the grand prize winner!
💰Total prize pool: 4,464 $ESPORTS
🏆 First Prize (1 winner): 964 tokens
🥈 Second Prize (5 winners): 400 tokens each
🥉 Third Prize (10 winners): 150 tokens each
🚀 How to participate:
1️⃣ Publish an
In the call option model, the optimal solution for the market maker is to sell the project party's token immediately after acquiring it.
Then you might ask, if you sell the token at the beginning, and the token rises again in the future, won't mm need a lot of money to buy it back?
Reason:
1. The strategy of market makers is delta neutral, not taking positions - the goal is to make a guaranteed profit without loss.
2. A call option actually limits the highest price, which limits the maximum risk exposure of the market maker (even if you surge 100 times, I can buy at 2 times the price).
3. This type of mm contract is usually 12-24 months. With so many projects in the current market, most peak immediately after launch; how many can last until a year later?
4. Even if the price skyrockets after 1-2 years, the profits from the price fluctuations would be sufficient to cover the losses from having "sold too early".