Q1. What is the total value locked in the Opyn Squeeth (osQETH) contract? And where does osqeth draw its value from?

Introduction

Squeeth or “squared eth” is a new financial derivative specifically a power perpetual, invented by Opyn Research Team, Dave White and Dan Robinson.
In their paper explain what is a power perpetual, in the overview explain that: ==Power perpetuals with powers greater than one have positive convexity, meaning holders make money faster as prices move in their favor and lose money more slowly as prices move against them. In the language of options, we would say they have positive gamma.==
Squeeth have both long and short options where in the Long squeeth users bought the ERC20 token from the pool and then sell it, meanwhile short squeeth users mint oSQTH tokens and sell in a Uniswap Pool.

Methodology

Using Flipside:
- ethereum.core.ez_eth_transfers table to look at Income and Outcome of Squeeth Controller address “0x64187ae08781B09368e6253F9E94951243A493D5”
Look at short-long users movement by tracking ERC20 token for long, and how oSQTH is minted. (sadly didn’t have the time)

Looking at the controller address, there is few ethereum that the one i get by using the Ethereum Transfer flipside table, this is because there is a lot of internal transactions to other addresses like the crab vault, the ERC20 token or the oSQTH tokens.
Although there is a lot of activity on ethereum, as always in May 2022, there is more ETH retrieved, because of all the downtrend in blockchains related to the Luna crash.
The movement of ETH seems to stabilize after May and becomes more active from Jun 9 to the present.

Squeeth is a newly derivative called power perpetual where holders can make money faster and lose money slower.
There is a Long/Short options for the users where the long users have to pay a premium yield to those who are short it.
It’s value is in the controller address which regulates the other address for long/short trades.

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