Investment summary
Bond + Options Vaults
Last updated
Bond + Options Vaults
Last updated
Summary
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 25% APY on USDC, USDT & USDe deposits, with yield paid in USDC, USDT & USDe (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: