Shoal Research
@shoalresearch
Perpetual Pre-Launch Futures "How is $JUP being traded before launch?" Perpetual pre-launch futures are a novel financial instrument that exchanges like aevoxyz, hyperliquid, and Helix enable users to trade tokens on leverage before they officially launch. a thread 🧵
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Shoal Research
@shoalresearch
Pre-launch futures represent a new avenue for gaining early exposure to nascent, high-profile projects outside of the traditional "airdrop farming" or early-stage investment.
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Shoal Research
@shoalresearch
The initial value of a pre-launch perp is estimated from the protocol's valuation. For instance, if the protocol's last valuation is $1 billion with a total token supply of 10 billion, the initial price is set at $0.1 - thereafter the price is determined by normal market demand
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Shoal Research
@shoalresearch
Once the token is officially introduced and commences trading on an external exchange, the pre-launch token future transforms into a conventional perpetual future.
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Shoal Research
@shoalresearch
aevoxyz introduced their pre-launch futures in 2023, capitalizing on hyped upcoming token launches and offering unique features for traders. Unlike other pre-launch markets, Aevo does not use a funding rate on these products.
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Shoal Research
@shoalresearch
Responding to market trends and upcoming token hype, Aevo made significant announcements on December 2nd, 2023 and December 5th, 2023, introducing pre-launch futures for $JUP and $JITO, capitalizing on hype and momentum.
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Shoal Research
@shoalresearch
Similarly, HyperliquiX's hyperps use a calculation that involves the project's tokenomics and FDV to create a mark price, which is used to price the new pre-launch futures.
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Shoal Research
@shoalresearch
Hyperps also don't depend on an underlying spot or index oracle price. The funding rate is based on a moving average hyperp mark price. We explain these terms in more depth in the full report.
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