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Sources of Yield
Users will have access to up to five sources of yield on Thetanuts Finance v3.
Basic Vaults sell out-of-money (“OTM”) European cash-settled options to accredited market makers, and generate yields for users in the form of option premiums. The Thetanuts Finance v3 interface allows users to get exposure to the Basic Vaults via opening a short call or short put position.
After a user opens a short call or short put position, the user will be prompted to “Boost” – which deposits the Basic Vault LP Tokens into the Lending Market. By providing liquidity on the Lending Market, Lenders generate yields in the form of Lending Interest.
In the future, Thetanuts Finance v3 will enable users to deposit $XYZ and $USDC into the Lending Market for users to generate Lending Interest as well.
Users providing liquidity on the AMM will be doing so for $XYZ/$XYZ-C or $XYZ-P/$USDC pools on Uniswap v3, and will be entitled to a 50% share of trading fees.
Users providing trading volume and liquidity on the Thetanuts Finance v3 ecosystem may be eligible for $NUTS token emissions in the future.
Users providing trading volume and liquidity on certain underlying assets on Thetanuts Finance v3 may be eligible for additional token incentives, particularly when other ecosystems (i.e. L1s) seek to incentivise activity on Thetanuts Finance v3.