Thetanuts Finance — the leading protocol for structured DeFi products for diversified organic returns. The platform is designed to manage DAO finances and help retail traders to generate organic profits from their holdings.
DeFi exchange Thetanuts
These Vaults simplify the options trading process by making previously complex instruments easier to access for any investor, allowing risk-adjusted volatility to be monetized. Launched in August 2021, Thetanuts Finance is founded by a team of programmers, hedge fund managers and financial analysts, specializing in creating financial crypto products.
Other features:
| 1. | Its strategies allow users to earn high risk-adjusted organic returns on their assets. |
| 2. | It takes a conservative approach to managing the risks, associated with various structured products. |
The main income, generated by Thetanuts, comes from option trading in the form of premiums. This form of income is considered organic as it does not rely on rewards or protocol token prices to support the income, generated for its users.
Users deposited their assets in an options vault, and Thetanuts pledged the assets and sold the option contracts to market makers via a blind auction to earn premiums for the options. After the blind auction, the user recognizes their income as a deposited asset. Thetanuts charges swap fees for the liquidity provided by Thetanuts Stronghold between Stronghold Index tokens and the underlying pair.
Stronghold function
Thetanuts Stronghold — the latest innovation in structured products. It's an amalgamation of multiple Thetanuts Basic repositories. These base vaults are then merged into the Stronghold vault. A Stronghold position is represented by a minted index token that represents the proportional fair value of the backing vault, including premiums that have been created over time.
Stronghold solves the above by selling across the entire time frame, picking places where other options storage does not sell. This reduces the chance of oversupply in a certain delta with a certain term, resulting in higher returns for users.
Index tokens, created in Stronghold, are connected to various chains through a wormhole. The Thetanuts protocol provides liquidity to various automated market makers (AMMs) so that users can exchange these positions for the underlying asset.