MYSO x Telos — Treasury Covered Call Strategy & Launch

Detailing the launch of MYSO on Telos Mainnet and the first ever Telos-native treasury covered call strategy

We’re extremely happy to announce that MYSO has recently launched on Telos Mainnet — an important step in bolstering the lending landscape on Telos by bringing bespoke DeFi loans and customizable covered calls to the chain. We’re working to expand access to a wide range of credit markets for Telos users and protocols alike and are proud to also share that we’ve facilitated the first Telos-native covered call strategies for the Telos treasury!

Let’s learn more about the integration and the unique treasury strategy👇

Covered call strategy for Telos treasury

To coincide with our launch, we’re proud to announce that we’ve facilitated the first Telos-native covered call strategy, allowing the Telos treasury to generate sustainable USDC revenues!

Three trustless on-chain covered call transactions have now been settled fully on-chain on Telos with ~300,000 wrapped Telos (loan leg) and ~$156,000 USDC (collateral leg) secured by LayerZero, an institution-ready cross-chain version of USDC.

Let’s examine the structure of each transaction:

• 200,056 wTLOS lent with 30 day expiry and 110% strike (upside cap) — totaling ~6.70% upfront premium
• 42,879 wTLOS lent with 30 day expiry and 110% strike (upside cap) — totaling ~7.18% upfront premium
• 62,063 wTLOS lent with 30 day expiry and 110% strike (upside cap) — totaling ~6.0% upfront premium

The Telos treasury has thus earned ~$10,200 in upfront USDC yields across these three initial covered call deals!

We’ve onboarded several institutional trading firms to take on the other side of covered call strategies such as this one and we work to provide support with matchmaking and getting the best possible yields for users, protocols, and treasuries alike. The beauty here is that by facilitating these deals natively on Telos, institutional firms become more acquainted with interacting and settling natively on-chain, bolstering liquidity and boosting recognition.

This is the second covered call strategy that MYSO has facilitated directly with a reputable treasury (first deal recently done with the Evmos treasury) and demonstrates the potential of implementing real-world structured products primitives into the on-chain world — we’re proud that Telos Foundation has taken the initiative in bringing this unique treasury strategy natively to the chain!

Lending/borrowing on Telos

MYSO is proud to be launching as the premier peer-to-peer lending protocol on Telos, allowing users to access custom loans with fixed terms and no liquidations!

As an oracle-independent protocol, MYSO is able to deliver credit markets to even the most underserved assets — this flexible architecture allows users and protocols to create loan pairings for any tokens and be matched with a counterparty at any risk appetite! This bodes particularly well for protocols launching on Telos, as reliable external price feeds may not be readily available for new projects! We’ll be looking to onboard the native tokens of projects that are live/will be launching on Telos — if you are on a team whose project is on Telos and would like to see your token available for permissionless borrowing/lending, please reach out to the MYSO team directly on Discord!

In addition, the Telos treasury can put their USDC revenues from the covered call strategy to use by creating lending markets for wrapped TLOS collateral, allowing for users to put their native TLOS tokens to use and promoting productive, sticky liquidity within the Telos ecosystem. The Telos treasury is free to set up permissionless lending markets with terms that make sense to them and we propose utilizing the following conservative parameters (50–70% LTV, 0.5–1.0% upfront fee, 30–60 day expiries) so that the treasury and TLOS holders alike can benefit from different loan terms.

About Telos

Telos is a L2 EVM blockchain that enables extremely high throughput (up to ~15,00 tps) and unparalleled low fees (~$.001 per tx), allowing for highly-scalable DApps like MYSO to thrive. These technical advantages allow MYSO users a seamless and low-cost experience with creating loan offers at scale and borrowing opportunities with minimal overhead cost!

For those interested in the architecture of the Telos EVM (tEVM), there are a few differences from the standard Ethereum Virtual Machine (EVM) including:

• Fixed gas prices — this means that your txs are not prone to frontrunning
• The tEVM is implemented as a smart contract on top of the Telos chain, meaining multiple EVMs can exist on the same chain at the same time
• Smart contracts running on tEVM use the Telos native token (TLOS) as gas, not ETH

tEVM is generally compatible with any Solidity smart contract, meaning EVM DApps like ours can port over from Ethereum or other EVM-based L2 with ease!

We look forward to expanding our relationships within the Telos ecosystem and promoting ample liquidity and unique DeFi strategies on the chain!

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