# Opyn primer on the Crab primitive (as a first-class citizen)

Source: https://x.com/opyn_/status/1787833876133417185
Kiwi News: https://news.kiwistand.com/stories/Opyn-primer-on-the-Crab-primitive-as-a-first-class-citizen?index=0x663a6aa7c0d8c5f4c9910c5273e2f30cded8568d8b8c5904ca28d19f337e7659c03ef54a
Submitted by m-j-r.eth on 2024-05-07 UTC, 1 upvote, 0 comments

## Summary

Crab is an active strategy within Opyn's Squeeth protocol, built from a short 2-perpetual (also known as Squeeth) and a long 1-perpetual, and it makes money when markets move sideways. An upgraded version is planned for Opyn's new protocol, which is soon to be released. Over a day, its payoff is described as resembling a rainbow, with the largest return if the market does not move at all. Returns turn negative if the market moves too much up or down.

## Article

Crab and the Pierian liquidity spring

Today we look more deeply at the Crab strategy that is part of Opyn's Squeeth protocol and its upgraded iteration in Opyn's new soon-to-be-released protocol.

Crab is an active strategy made from a short 2-perpetual (also known as Squeeth) and a long 1-perpetual.

Crab is called Crab because it makes money when markets go sideways, like a Crab.

The payoff for Crab over a day looks like a rainbow: it makes the largest return if the market does not move at all. Crab has negative returns if the market moves too much up or down.