How is Yield Generated?
The primary yield generated by Thetanuts is through options trading in the form of premiums. This form of yield is regarded as organic as it does not rely on protocol token rewards or the protocol's token prices to support the yield generated for its users.
Users would deposit their assets into an option vault, Thetanuts would then collateralize the assets and sell the options contract to market makers via a blind auction to receive option premiums. After the blind auction, the user would recognize their yield in the form of the asset that they have deposited.
An example of organic yield would be a WBTC put-selling option vault sold by Thetanuts. Users would deposit their USDC assets into the WBTC put-sell option vault. Thetanuts would collateralize the USDC assets and sell it to market makers via a blind auction to receive option premiums upfront. After the auction, users would recognize their APY% in USDC.
These are the white-listed market makers that Thetanuts works with:
- 1.QCP Capital
- 3.TDX Strategies
- 4.Bastion Trading
- 5.Grapefruit Trading