Investment summary

Bond + Options Vaults
  • These vaults trades a Bond + Options strategy — a portion of invested capital is lent to market makers to generate additional yield alongside options premiums
  • Earn 12% to 15% APY on USDC deposits, with yield paid in USDC (APY varies based on market conditions)
  • Different underlying assets in basket option range from BTC, ETH, SOL
  • Invested capital is protected from loss unless the price of an underlying asset falls by up to 90% during 27 days (varies based on vault product)
  • Invested capital is locked for 27 days
  • Vaults automatically rollover upon expiry to compound returns
Product Description
This vault delivers a Bond + Options strategy by trading an exotic options structured product commonly known as a “fixed coupon note” (FCN) in traditional finance. FCNs are a type of exotic option that combines equity options and bond-like characteristics. Investors earn a high yield coming from the combination of (1) options premiums and (2) bond yields from a portion of deposits which are lent to the market maker counterparty. Investors accrue daily yield payments on their deposited capital and are paid when the vault option expires/matures. At expiry, the initial deposit is returned to investors in full if the price of an underlying asset (e.g. ETH, BTC) has not fallen below the Knock-In level during the 27 day trade. Bond + Options vaults are valuable investments for investors who seek superior yields and have positively or moderately bullish views on the price of the underlying crypto assets.
Link to Products:
The following Bond + Options products are no longer taking new deposits: