DeFi Option Vault (DOV)

The classics

What is a DeFi Option Vault (DOV)?

DeFi Option Vaults run an automated option selling strategy, selling out-of-the-money (OTM) calls/puts on a weekly basis and collecting the premiums. Teragon DOV's run weekly Epochs in which the options are auctioned off to select market makers.

Everything is automated, users can set-and-forget their holdings in these vaults to collect premiums.

Implementation Example

• Teragon Global Crypto Index (GCI) Call Overwriting Vault on BSC

• Users can deposit their Teragon GCI token into this vault

• The vault generates yield by selling weekly call options on the Teragon GCI

• If the call option ends up out-of-the-money, users receive option premium in the form of additional Teragon GCI vault tokens

• If the call option is in the money, then users receive the equivalent BUSD generated by selling the Teragon GCI notional + call option premium at the strike price

Fee Structure

Teragon charges a 2% fee on all premiums weekly.

The resulting revenue is directed to the Teragon treasury.

User Deadlines

Withdrawal cut-off: 9am UTC Fridays

Any users looking to withdraw funds need to submit withdrawal requests before this time otherwise funds will be rolled over into the next Epoch