How to do Covered Calls on MYSO
The MYSO v2 protocol enables bespoke covered calls for treasuries and whales. You can earn MYSO Tokens (MYT) by becoming a user and lending altcoins through the MYSO v2 protocol. This way you can not only earn MYT rewards but also attractive upfront stablecoin premiums with sustainable high double-digit APYs, all powered by structured product primitives.
To earn MYSO Tokens (MYT), lend altcoins through the MYSO v2 protocol.
You can lend almost any altcoin, the minimum size is $50k equivalent.
How? Follow these 8 steps:
- Step 1: Decide which token you’d like to lend. Check out this list of tokens for inspiration: List of tokens.
- Step 2: Get indicative quotes using Captain Yield Bot: Captain Yield Bot. Example: If you wanted to lend “ethena,” you can use the command
/quotegrid ethenato see what you could earn. - Step 3: Decide which size, tenor, and strike you’d like to proceed with and ping the team on Telegram or Discord. For example: “I want to lend $50k of ‘ethena’ for 30 days with a 110% strike for 6.48% upfront.”
- Step 4: Get a firm quote.
- Step 5: Create a lender vault on MYSO Finance Vaults.
- Step 6: Fund the vault with the loan amount. For example: Deposit $50k of ‘ethena’ into your vault.
- Step 7: Create an on-chain offer that matches the firm quote using the helper spreadsheet: Helper Spreadsheet. The team can assist with this.
- Step 8: Done. Once matched, you’ll immediately have your USDC upfront premium available in your vault to claim. Plus, you’ll be able to claim extra MYT rewards via the airdrop page.
For more details to each step please see below 👇
Detailed Step-by-Step Guide
Step 1: Decide which Altcoin to lend
You can lend almost any altcoin, just needs to be on an ERC20 on either Ethereum, arbitrum, mantle, telos or evmos. The more volatile the coin, the higher premium you can earn.
You can browse through this List of tokens for inspiration.
Step 2: Get indicative Quote
Use the MYSO Captain Yield telegram bot by pinging via DM. You can use the following command to get indicative quotes for example for token “ethena”: /quotegrid ethena
To search for ticker names, use /search <name>, for help use: /help ethena
Step 3: Decide on Tenor and Strike
The quote grid shows you what you can earn for lending across different strikes and tenors.
For example, lending for 30 days with a 110% strike earns you 7% upfront (equivalent to an 85% APY annualized). This means if you lend $100k of ‘Ethena’ for 30 days with a 110% strike, you’d receive $6,960 USDC upfront. If after 30 days ‘Ethena’ didn’t increase by more than 10%, you get all ‘Ethena’ tokens back; otherwise, you receive $110,000 USDC. Below is an example payoff diagram illustrating how conducting a covered call compares to simply holding the underlying.
Step 4: Get Firm Quote
To get a firm quote, simply reach out to the team via Telegram or Discord. Let them know which underlying, size, strike and tenor you’d like to proceed with.
For example, “I’d like to lend $100k Ethena for 30d and 110% strike, pls get firm quote”.
The team will then help you get a firm quote from several institutional trading firms that are already onboarded to MYSO. The turnaround time is typically a few hours. Quotes should be close to the indicative quotes but might be lower or higher from time to time.
Step 5: Create your Lender Vault
Go to https://app.myso.finance/vaults to create your non-custodial lender vault.
Please beware of scammers. Only use the official MYSO DApp: https://app.myso.finance.
Step 6: Fund your Vault
Fund vault with the given target amount you’d like to lend.
Step 7: Create On-chain Offer
Create on-chain offer that matches firm quote using our helper spreadsheet. The team can assist with this.
Step 8: Done
Once you get matched and your quote is filled, the stablecoin upfront premium will be available for you to unlock and withdraw from your vault immediately. In addition, you’ll also be able to claim extra MYT rewards via the airdrop page!
Why Covered Calls on MYSO
Using MYSO, you can earn attractive upfront stablecoin premiums by lending altcoins through trustless covered calls, fully on-chain and without counterparty risk. This way you can earn stablecoins without having to sell your altcoins, all while maintaining upside up until the strike price.
With over $1.25 million in covered call notional volume already facilitated, the MYSO v2 protocol is the go-to place for tailored covered calls. It has been used by several whales and treasuries, for example:
- Enzyme whale earning ~$12k USDC (97% APY) for lending $150k of $MLN for 30 days with a 110% strike
- UMA whale earning ~$7.4k USDC (45% APY) for lending $100k of $UMA for 60 days with a 120% strike
- Golem whale earning ~$6k USDC (104% APY) for lending $70k of $GLM for 30 days with a 120% strike
- Holo whale earning ~$4.7k USDC (57% APY) for lending $100k of $HOT for 30 days with a 120% strike
- Telos treasury lending $150k of $wTLOS for 30 days with a 110% strike (Trx1, Trx2, Trx3), and another $100k of $wTLOS for 30 days with a 110% strike.
- DIA whale earning ~$10.5k USDC (63% APY) for lending $100k of $DIA for 60 days with a 110% strike
- Evmos treasury lending $100k of $EVMOS for 30 days with a 110% strike, and another $100k of $EVMOS for 30 days with a 120% strike
- Beam whale lending $140k of $BEAM for 30 days with a 140% strike
- Liquity whale lending $150k of $LQTY for 90 days with a 110% strike
To see more transactions, please refer to our stats page.
MYSO v2 has undergone three independent security audits with Statemind, Omniscia and Trail of Bits. The protocol has onboarded several institutional trading firms to source liquidity and optimize covered call matching. Furthermore, MYSO is supported by a consortium of renowned crypto-native investors, including HashKey, Wintermute, Nexo, and GSR.
