Earn
Deposit USDC, receive soUSD. Your deposit funds collared loans; your yield is the option premium those loans generate, priced when each collar is written, not promised after the fact.
Target yield is 10-16% APY depending on tenor, with a floor mechanism that holds when collar premiums compress.
Terms, Deposits go into tenors (7, 30, and 90 days). Shorter tenors price richer premium per unit time; longer tenors carry steadier income. Pick the tenor that matches when you need the capital back.
| Field | Description |
|---|---|
| APY | Premium income from the collars written on loans your deposit funds. Variable, moves with implied volatility and utilization |
| Utilization | % of pool capital in active loans. Higher = more premium income |
| Payback Period | When your deposit unlocks. Funds in active loans unlock at loan maturity |
Where the yield comes from, Every funded loan writes a collar on the borrower’s collateral. The short call leg generates premium; that premium is the yield. It is endogenous to the book, uncorrelated to Fed rates and to other protocols’ emissions schedules. When implied volatility is rich, premiums are rich. When it compresses, yield compresses toward the floor.
What protects the principal, Each loan is over-collateralized and carries a put struck at or above the loan value. Above the floor, collateral covers the loan; below it, the put pays the difference. See Risks for the edge cases.
Withdrawal, Redeem soUSD for USDC after your tenor’s unlock. Funds in active loans unlock as those loans mature.
No deposit or withdrawal fees.