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Sources of Yield

Overview of Sources of Yield

Users will have access to up to five sources of yield on Thetanuts Finance v3.

1. Option Premiums from Basic Vaults

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.

2️. Lending Interest from Lending Market

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.

3️. Trading Fees from AMM

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.

4️. Potential $NUTS Token Incentives

Users providing trading volume and liquidity on the Thetanuts Finance v3 ecosystem may be eligible for $NUTS token emissions in the future.

5. Potential Additional Token Incentives

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.