GammaSwap Open Interest

GammaSwap Open Interest is the liquidity-supply side of an onchain perpetual-options market. LPs supply a 50/50 token pair to an AMM-derived GammaPool; traders borrow and burn the LP liquidity, hold the underlying tokens as collateral, and pay a utilization-based borrow rate. LPs therefore retain AMM inventory and impermanent-loss exposure while also accepting utilization and delayed-exit risk. The 2026-08-16 survey reported about $618K across Arbitrum, Base and Ethereum. That is an AMM-LP class application, not a plain lending or synthetic-derivative deposit.

Review triggers: events that reopen the verdict
• Ships a product line without impermanent-loss exposure that merits its own review

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-16.

The research file

Mechanism applicability

GammaSwap documents non-synthetic perpetual options created by borrowing liquidity from AMMs. A supplier chooses a GammaSwap pool and deposits both tokens in a 50/50 ratio, receiving a GammaSwap LP position; borrowers burn borrowed LP tokens and hold the underlying pair as collateral. That client-side supply position is AMM inventory and fits the shared AMM-LP dossier.

Loss and control applicability

The supplier earns swap and borrow fees but remains exposed to impermanent loss, token quality, pool utilization, contracts and borrower-liquidation execution. GammaSwap says loans are overcollateralized and borrowers absorb losses from insufficient volatility versus interest through their additional collateral; that design adds protection but does not turn the supplier into a single-asset, principal-stable lender.

Exit and current perimeter

GammaSwap permits manual withdrawal in the pool pair or a zap into one token, subject to price impact and slippage. Its withdrawal guide states that liquidity borrowed as open interest cannot be withdrawn immediately, and farmed GSLP must first be unstaked. The DefiLlama read on 2026-08-16 reported about $618K across Arbitrum, Base and Ethereum; the registry chain list is updated to match that live and documented perimeter.

Why the class rule decides

The supplier must own a two-token AMM position whose composition changes with price, so the version-1 AMM-LP dossier is decisive even though option borrowing changes the fee and utilization profile. Reopen only for a named GammaSwap product that removes AMM inventory and impermanent-loss exposure; then separately review collateral, liquidation, manager authority if any, withdrawal queues, incidents, audits and liquidity.

Class rule

The amm lp class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• GammaSwap docs — protocol and deployment overview · primary · accessed 2026-08-16
  Supports: perpetual options, AMM liquidity borrowing, Arbitrum, Base, Ethereum
• GammaSwap docs — provide liquidity · primary · accessed 2026-08-16
  Supports: 50/50 tokens, LP position, impermanent loss, zap
• GammaSwap docs — perpetual-option mechanics · primary · accessed 2026-08-16
  Supports: borrowed LP tokens, collateral, borrow rate, liquidation
• GammaSwap docs — remove liquidity · primary · accessed 2026-08-16
  Supports: withdrawal, open-interest utilization, slippage, farm unstaking
• DefiLlama — GammaSwap Open Interest survey record · secondary · accessed 2026-08-16
  Supports: current TVL, Arbitrum, Base, Ethereum, Options category

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.