Squeeth (squared $ETH) is a new Ethereum-based financial derivative invented by the Research Team at Opyn. Squeeth is the first Power Perpetual (a perpetual derivative indexed to a power of the price of some underlying instrument) and gives traders perpetual exposure to $ETH².
Mechanism-wise, Squeeth functions similar to a perpetual swap, tracking the index of $ETH² rather than $ETH. It provides global options-like exposure (pure convexity, pure gamma) without the need for either strikes or expiries, effectively consolidating much of the options market liquidity into a single ERC20 token.
In short, Squeeth makes options perpetual and is a very effective hedge for Uniswap LPs, all $ETH/$USD options, and anything that has a curved payoff.