SSOV
Single Staking Option Vaults (“SSOVs”) are our flagship product that allows users to write (sell) or purchase options.
- SSOVs allow liquidity providers to write covered calls and cash-settled puts and earn premiums and farm rewards
- Options can be purchased from SSOVs by paying a premium to liquidity providers
Note that users can zap in with any asset which will swap the asset they wish to pay with for the asset required by the vault.
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Writers receive a premium for options sold but have their collateral slashed to pay buyers if they expire ITM. Writers may also earn yield via farm rewards (denoted by APY).
Deposits in an SSOV are locked for the duration of an epoch to ensure options remain fully collateralized.
Option buyers may purchase options from an SSOV if there is available liquidity by option writers. Buyers pay an upfront premium in the form of the base asset (for calls) or stablecoins (for puts).
Option buyers may select underlying asset, option type (call or put), strike price, and expiration (weekly or monthly) whilst IV is automatically generated based on historical volatility.
If the options expire ITM, option buyers receive settlement in the form of the base asset (calls) or stablecoins (puts). Options can only be settled on or after the expiry date.
Underlying Supported (Epoch Duration):
Weekly
- Calls and puts: $DPX, $rDPX
- Calls only: $stETH, $MATIC
- Puts only: $ETH, $BTC, $GMX, $CRV, $CVX
Monthly
- Calls only: $DPX, $rDPX, $stETH, $ARB
Strike Price(s): 0, 0.66, 1, and 2 Standard Deviations from spot price at time of bootstrapping
Last modified 3mo ago