❓PokPok Protocol FAQ
Last updated
Last updated
Options are like chicken insurance contracts! Here's how they work:
- Think of it as "reserving the right" to buy (calls) or sell (puts) at a specific price - You pay a small premium (feeding cost) for this right - If the market moves in your favor, your chicken grows healthy - If the market moves against you, your chicken gets sick - You're never risking more than your feeding costs
Your total profits if profitable is calculated by ($Price at Maturity) – (Strike Price (US$) – (Premium paid for option)
Think of puts and calls as your chickens' personality types:
**Call Chickens 📈**
- Optimistic chickens that grow when prices go up
- Profit when market price > strike price
- Use when you think prices will rise
- Example: ETH at $2000, you expect $2500
**Put Chickens 📉**
- Cautious chickens that grow when prices go down
- Profit when market price < strike price
- Use when you think prices will fall
- Example: ETH at $2000, you expect $1500
Choosing your chicken's duration (option expiry) depends on your trading strategy:
**Quick Rear (3 days)**
- Lower premium costs - Better for quick market movements - Higher risk/reward ratio - Good for active traders
**Normal Rear (7 days)**
- Balanced premium costs - More time for market movement - Moderate risk/reward - Popular choice
Missing a feeding has serious consequences:
- Your chicken begins to starve - Position becomes at risk - 24-hour grace period starts (resets at 8am UTC everyday) - After grace period, chicken dies (position terminates) - Premium paid is lost - Option position closes
Pro Farmer Tip: Set up reminders or use the Feed All feature to avoid missed feedings!
Your chicken will mature on the date indicated, at 8am UTC. For Quick Rear, it takes between 56 to 80 hours, whereas for Normal Rear it takes between 152 to 176 hours.
For example, if a chicken was hatched on 01/01/2025 11pm UTC for a three-day option, it will mature on 04/01/2025 8am UTC, a total of ~57 hours
On the other hand, if a chicken was hatched on 02/01/2025 1am UTC for a three-day option, it will mature on 05/01/2025 8am UTC, a total of ~79 hours
For beginners, we recommend:
1. Start with one chicken (single position)
2. Choose call options when market is trending up
3. Use 7-day nourishing feed for easier management
4. Set price alerts for health monitoring
5. Join the Discord community for tips
Option prices (your chicken's feeding costs) change based on several factors:
Price Factors:
├── Market Volatility
│ └── More volatility = Higher prices
├── Time Until Expiry
│ └── More time = Higher prices
├── Strike Price Distance
│ └── Further from current price = Lower prices
└── Market Conditions
└── Overall market sentiment affects prices
Yes! You can manage multiple chickens:
- No limit on number of chickens - Each represents a unique options position - You can mix calls and puts - Different feeding schedules possible - Portfolio diversification is recommended
PEGGs ($PEGG) are golden eggs - the valuable reward tokens of PokPok:
- Earned through successful farming - Share in protocol revenue - Earned from staking healthy chickens - Tradeable on certain exchanges
APR in PokPok is calculated this way: Total APR = [Weekly PEGG Emissions (in $) / Value of all Pok chickens staked (in $)] * 52 weeks
PEGG locking is part of our tokenomics design:
- Ensures sustainable protocol growth - Prevents market dumps - Rewards long-term farmers - Aligns incentives - Protects token value
The Arena is our P2P battle system and the Market Place is where you can burn $PEGG tokens to earn a share of the protocol revenue. These features are work in progress and part of PokPok’s roadmap.
Genesis NFTs have special privileges:
- A portion of weekly emissions are reserved for staked Genesis chickens
Following features are work in progress:
- Reduced trading fees - Early access to features - Exclusive analytics - Special Arena abilities
If your option is profitable at maturity, the price of the chicken in ETH will be = Current Price – Strike Price. If it is unprofitable, you will receive a diseased chicken that can be burnt and returned for a small amount of $PEGG tokens
Risk management strategies:
1. Use stop-loss planning
2. Monitor health regularly
3. Diversify positions
4. Start with smaller positions
5. Don't chase losses
Ways to contribute:
1. Join community discussions
2. Participate in governance
3. Create educational content
4. Report bugs/issues
5. Refer new users
Follow our channels at official links:
- Discord announcements
- Twitter updates
- Telegram group
- Official blog
- Newsletter
