Counterparty

Submitted Feb 8, 2026

Application Details

Basic Information

Contact Name
Sunghun Ko
Telegram
wycfwycf
X Profile
wycfwycf

Team & Background

Who are you?
I am a KAIST graduate building an prop-amm based router at MegaETH. I worked on various projects as a researcher, designing and studying the economic systems and mechanisms of DeFi projects. You can see my record on here: https://sites.google.com/view/ko-sunghun/main
Previously Deployed
No

Market Proposal

Assets to Deploy
Realized Variance of major crypto assets and indices: BTC, ETH, and SP500, computed from rolling (24h) 5-minute log returns. It is basically the perpetual version of a variance swap. This will provide a simple, easy-to-understand product for users who want to bet on short-term volatility. Previous products like VIX don't track "realized" volatility; they essentially mirror what investors expect, and often buyers get confused when their VIX position doesn't move even as the market moves violently, which is a bad UX. rolling realized variance eliminates such friction and provides an easy-to-understand alternative. For liquid enough assets, they are relatively easy to hedge, so many MMs will want to provide liquidity as well.
Market Type
Crypto
Exists on Other Venues
No
Differentiation
There is no venue with a meaningful share providing this yet.
Target Leverage
1x ~ 5x (too risky for short side)
Market Makers
No

Oracle & Distribution

Data Source
Pyth
Price Construction
One thing to be careful with is making it robust to manipulation. If we use a single venue's 5-minute closes only, then we are vulnerable to manipulation. To prevent it, we: 1. Get the price from many credible venues, then take the median. 2. Compute 5-minute returns with 5 price sequences shifted by 1 minute, i.e., using 5-minute return sequences from prices at [00:00, 00:05, ...], [00:01, 00:06, ...], ... , then take the mean. The grid can be taken more frequently, such as every 30 seconds. When I ran a backtest myself, it didn't make much difference, though. 1 minute is already fine.
Volume Strategy
I think, due to its nature, it will attract a guaranteed volume from arbitrageurs and market makers. I will personally write an article arguing that this market can be a good venue for AMM LPs to hedge impermanent loss (divergence).
Distribution Channel
No

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