Opyn Squeeth · interactive mechanism simulation

Minters lock ETH collateral to mint oSQTH (tracking ETH²) into a Uniswap v3 pool; longs buy convex, liquidation-free exposure while a "normalization factor" continuously drains value from longs to shorts as in-kind funding. Crab Strategy runs a delta-neutral short book to harvest that funding. Short vaults that fall under-collateralized as ETH rallies get liquidated. Drag the sliders — or trigger the real 2024 shutdown.
ETH Market $2,000 Minters (shorts) 0 vaults Squeeth Controller oSQTH supply: 0 norm factor: 1.000 min CR 150% Uniswap v3 pool oSQTH/ETH · mark ×1.00 Longs buy convex ETH² exposure funding paid: 0.0 ETH Crab Strategy vault short oSQTH + long ETH hedge harvested: 0.0 ETH Liquidator 0 vaults liquidated seizes under-CR collateral
ETH price
$2,000
Mark − index premium
0 bps
oSQTH minted
0.0
Vaults liquidated
0
Crab harvested
0.0 ETH
Parameters — edit me
+2%
6%
150%
20bps
1.0/s
Controls

Illustrative simulation. Mechanics follow the researched Squeeth design (ETH² index, in-kind funding via a decaying normalization factor, overcollateralized minting with liquidations, delta-neutral Crab vault) but price paths, trade sizes and timing are randomized for visualization — not live onchain data. Squeeth's math held up through 2022's crashes; it was a CFTC settlement, not a mechanism failure, that ended it — hence the shutdown button rather than a break-the-peg button. Part of The Onchain Experiment Atlas.