DeFi Option Vaults (DOVs) by Polysynth Protocol

Do you like DeFi? If so, then you are familiar with staking, yield farm, and vault. On the Ethereum and Polygon networks, there is a platform that supports DeFi features with a unique system and mechanism.

The platform is Polysynth Protocol. Polysynth Protocol is a protocol that resides on the Ethereum and Polygon network. If you are familiar with the Ethereum blockchain then you can use Polysynth on the Ethereum network, but if you like cheap gas fees you can use Polysynth on the Polygon network.

What is Polysynth?

Polysynth Protocol is a DeFi Options Vault (DOV) protocol powered by Ethereum and Polygon, enabling you to express your views on the market and earn in all market conditions.

What can you do on Polysynth?

  • Simply deposit assets and auto-compound your wealth in all market conditions
  • 100% on-chain, non-custodial investing
  • Earn sustainable high yields by options selling instead of token farming
  • Enjoy higher liquidity for underlying option contracts – more depth and variety of products

What is DeFi Option Vaults (DOVs)?

Investors simply stake their assets in a vault that spreads the assets into the options strategy. True to the nature of DOV, Option Vaults Polysynth makes it easy for investors to maximize options forever. Option Vaults Polysynth abstracts away all the complexities of underwriting options, pricing options, juggling strike prices, and Replacing them with simple deposit and auto compounding income vaults.

Options can seem complicated, as strategies can involve multiple strikes, expirations, and several other factors that investors need to consider. In addition, the gas costs associated with frequently rolling options can significantly eat into the resulting yield. DOV allows users to skip the complexities of options strategies and only need to stake their assets in the vault.

The premium collected from selling options represents the proceeds and is distributed among users in proportion to their savings. Users only need to pay network gas fees at the time of deposit or withdrawal, and Polysynth takes care of all operating gas costs thereafter.

Unique Benefits of Polysynth DOVs

1. A wider range of structured products

Polysynth offers a much wider and all-encompassing suite of structured products to earn across all market conditions. Unlike other protocols which expand offerings across asset classes, we are focusing on expanding in terms of strategies. Expanding offerings in terms of asset classes somewhat defeats the purpose of options, as most crypto assets are highly correlated. On Polysynth, in addition to a wider range of products, there will be different versions of strategies with varying risk-return payoffs based on an investor’s risk appetite.

2. Treasury Management Solutions

We have developed strategies that enable DAO treasuries to achieve a) Treasury Diversification and b) Downward Price Protection without selling their native tokens. Our treasury diversification strategy enables DAOs to sell covered calls on their native token powered by our RFQ system to generate sustainable yields. Whereas the downward price protection strategy combines selling a covered call and buying a put on the DAOs native token to safeguard the treasury’s dollar value.

3. DOV Staking Rewards

Investors earn POL Tokens every time they deposit assets in our DOV. The DOV Staking Rewards is based on a formula that rewards total fees contribution by the investor in an epoch.

DOVs Polysynth memiliki 2 DeFi Option Strategies

Yielding Cryptos

Asset Vaults Yielding Cyptos

This vault generates income by collecting premiums on covered call options sold on the underlying asset in an automated way. Deposits are taken in the denoted currency and returns are paid out in the same. Deposits are deployed every Friday and accrues interest every week. The vaults are auto-compounding unless the funds are requested for withdrawal.

This strategy is suitable for users holding the underlying asset and are moderately bullish. The risk of this strategy is in the case of heavy upward swing in the price of underlying, users’ gains will be capped.

Yielding Stables

Asset Vaults Yielding Stables

This vault generates income by collecting premiums on put options sold on the underlying asset in an automated way. Deposits are taken in the denoted stable coins and returns are paid out in the same. Deposits are deployed every Friday and accrue interest every week. The vaults are auto-compounding unless the funds are requested for withdrawal.

This strategy is suitable for users not currently holding the underlying asset and having a moderately bearish view on the same. The risk of this strategy is that in the case of steep market crashes, users can lose the deposited stables.

Conclusion

DeFi Option Vaults (DOVs) Polysynth is suitable for maximizing profits in DeFi because it will provide options that suit the user and the user does not need to bother because the strategy will be determined by Polysynth. Polysynth offers a simple way for users to earn through depositing assets into structured products. DOV Polysynth is easy for users to deposit their money and earn up to 44% APY.

In addition to DOVs Polysynth products, Polysynth also has Lending Pools and Perpertual Trade products. Users can also make money from Referrals. Users can earn 25% of the management fees generated by them by depositing in Options Vault. Interested in joining and using Polysynth, visit the official website and social media from Polysynth below.

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