In our previous article, we discussed how the Uniswap Automated Market Maker (AMM) LP model revolutionized decentralized finance (DeFi) by enabling everyday users to participate and earn returns through a linear market-making strategy.
Building upon the concepts pioneered by Uniswap and Curve, dVOL Finance has taken the next step with its Option Liquidity Pool (OLP), offering users the opportunity to participate and earn even higher yields by providing liquidity in an option market-making pool.
dVOL Finance has proudly launched the first wBTC/ETH Option Liquidity Pool (OLP) on Arbitrum, providing holders of both BTC and ETH with a sustainable source of on-chain yield ranging from 20% to 40% APY.
Taking a deeper look at the yields generated by Uniswap on similar WBTC/WETH pools, a clear side-by-side comparison reveals significantly higher returns with DVOL Finance. In fact, OLP offers upto 5.2x higher APY compared to the current yield of Uniswap WBTC-WETH pools on Arbitrum. Furthermore, it provides upto 4.5x higher APY compared to the average APY of the same pool over the past 30 days.
Similar to the AMM LP model, the embedded risks of the OLP includes Impairment Loss, which occurs when staked BTC is converted into ETH and vice versa. However, users are rewarded with higher yields regardless of conversion compared to the AMM LP model.
This product is particularly well-suited for a bullish market like the one we are currently experiencing. If you HODL both BTC and ETH in your portfolio, you can now generate an additional 20% to 40% APY by participating in the Option Liquidity Pool.
Join dVOL Finance’s wBTC/ETH Option Liquidity Pool on Arbitrum today and unlock sustainable Bitcoin yield like never before.
dVOL Finance is a Decentralized Derivatives Research lab, backed Protocol Lab, LongHashX & Baboon VC. Strategic partner with ND Labs and MetaEra. Expert founding team from top-tier financial institutions like Morgan Stanley, Optiver, and Amber, our team comprises of derivatives and technology experts.
Find us here:
- Product Page https://pools.dvol.finance
- Website https://dvol.finance
- Litepaper docs.dvol.finance
- Telegram Group https://t.me/dVolFinance
- Twitter @dvolfinance
- Email: info@dvol.finance
- Medium @dvolfinance
