Premium breakdown
Collateral & capital efficiency
Premium APR across the utilization kink
Same range, volume, fee tier and time-in-range as above, swept across utilization from 0% to 100%. The multiplier bends at a 50% kink — below it sellers are paid gently more for extra utilization, above it the rate accelerates sharply, the same shape used on Aave/Compound-style lending curves elsewhere on this site.
| Utilization | Multiplier | Premium APR | Zone |
|---|
How Streamia actually works
Every other options protocol prices premium up front off implied volatility. Panoptic doesn't — because a short Panoption is a Uniswap v3 concentrated liquidity position, the protocol can just measure the real swap fees that liquidity earns and pass them to the buyer as rent, continuously, for as long as the position stays open. That base fee rate is the standard concentrated-liquidity yield formula: (daily volume trading through the range × fee tier ÷ liquidity depth in the range) × 365. But that number only applies while price is actually inside the strike range — exactly like a Uniswap v3 LP only earns fees while in range — so it gets scaled down by your estimate of how much time price spends there, which is this protocol's stand-in for standard option "moneyness." See IL Fee Break-Even and Meteora DLMM Bin Range for the same concentrated-liquidity fee mechanics from the LP side rather than the options side.
Reading the numbers, and why utilization matters twice
At the defaults — $10,000 notional, a 10% full-width range, 60% estimated time-in-range, $2,000,000 of daily volume trading through that range against $5,000,000 of liquidity depth at a 0.30% fee tier, and 45% pool utilization — the math runs in three steps. First, the base concentrated-liquidity fee APR is ($2,000,000 × 0.30% ÷ $5,000,000) × 365 ≈ 43.8%: that's what the range earns in fees whenever price is inside it, which is a normal (if high) yield for a narrow Uniswap v3 range during an active trading day. Second, scaling by the 60% time-in-range estimate brings it to roughly 26.3% — the position isn't earning fees the other 40% of the time, so neither is the premium. Third, at 45% utilization — just under the 50% kink — the multiplier is only 1.45x, nudging the final streaming premium to about 38.1% APR, or roughly $10.44/day on the $10,000 notional, ≈$313 over a 30-day hold.
Utilization does double duty here. It's a proxy for how much of the pool's spare liquidity has already been sold as options — the more that's sold, the less room the pool has to absorb withdrawals or exercises safely, so sellers who commit their liquidity anyway are compensated with a steeper multiplier past the 50% kink (3.6x at 85% utilization, 4.5x at 100%, versus a flat 1.0x with zero utilization). On the collateral side, the same range width that determines moneyness also determines capital efficiency: a Panoption's required collateral is only about half the range's width as a fraction of notional, since that's what backs a concentrated liquidity position of that width across its full range — at the default 10% width that's $500 of collateral behind $10,000 notional, a 20x capital efficiency multiple versus posting full notional the way a margin-based options seller would have to. Narrower ranges push that multiple higher still, at the cost of the position spending less time actually in range.