Composability is the world’s ninth wonder…
turned to reality at Neuron
Emergence
Emergence is a wondrous property. Fish become another living and breathing entity when combined into a school, cells differentiate and power an organism, to think of a few.
How does this translate to the evolution of financial systems? Let’s remember Albert Einstein’s famous “Compound interest is the eighth wonder of the world” — we’d boldly name yield composability as the ninth!
So, what’s the deal with yield being composable and how is that even possible?
Composability levels
🦠 to 🦧
DOVs, or DeFi Option Vaults, had long been considered the epitome of structured and composable yields. And they seem awesome: you’re using the asset to run option strategies (woo, on-chain options!) and gain yields. And you’re depositing, say, 10000 USDC to run put selling on ETH. And then, possibly, ETH covered calls, if you get assigned… But wait, what about the collateral? Is it just locked the whole time until expiry? Wtf?
Now, enter Neuron: the tokens used as the collateral will be sent to an LP pool for additional yield. And you won’t need to do anything, like, at all.
How is this a thing?
Plain and simple: say, anon is bringing in an apartment as loan collateral. It can either stand still unused (weird), or be rented out (remember anon wgmi and it’s his 5th apartment in the city) on AirBnB.
That’s what we’re doing for options: european options are only exercised on expiration date ➡️ we can safely use the collateral otherwise sitting idle (hello Mr. TradFi, where collateral is frozen). Collateral in Neuron is used in Convex/Curve liquidity pools for a great reward:risk ratio (as the risk, including impermanent loss risk, is minimal)
Why is it (r)evolutionary?
You’ll be getting two layers: LP yields and option strategy yields as collaterals are used as liquidity 99.9% of the time before expiration. And, more importantly, you can flexibly choose the liquidity pool to use the collateral in.
Impermanent loss is minimized because the assets are stable respective to each other ⚖️
How do we know option strategies are profitable on their own? We’ve backtested them on extensive data and published it all openly on Medium: covered call and complex strategies actually beating the market! So rest assured you’re in good hands (minds?).
…did we mention it will soon be possible to one-click transfer your DOV liquidity to Neuron? After all, why settle for (x) APY when there’s (x,y)? 😏
We’re well-versed in neuroscience and decision-making, and activation energy is indeed a thing everyone is encountering daily. By launching a thing like that, we’re trying to minimize the energy it takes to unwrap, transfer, swap and allow one to enjoy life (i.e.: read and ape) more.
Neuron makes collateral management for options easy and flexible.
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