PsyFinance v2 and What It Brings to the Table
It’s been one week since the launch of PsyFinance v2, and we couldn’t be more excited to have this protocol out in the wild for all to use. There have been quite a lot of improvements made to this version of the protocol, so let’s take a deeper look into what PsyFinance v2 brings to the table!
The major upgrade in PsyFinance v2 is our transition from American style options, to European style options. This transition will dramatically increase capital efficiency which in turn will lead to increased returns for our users!
Another major improvement comes in the form of our new auction process. Previously, only white listed institutions could participate in the PsyFinance auctions, but not anymore! Auctions will now be held on the PsyOptions x Serum orderbook so anyone can bid on the weekly options alongside our market makers. Having a more competitive bidding process will improve pricing and boost yield for our users! Checkout our walkthrough guide here.
We’re also focused on improving the user experience. Currently, users of PsyFinance v1 have to do the following:
1.) Initialize a receipt
2.) Deposit/withdraw the receipt and
3.) Exchange the receipt next epoch
In v2, we have consolidated this process. Steps 1 and 2 will now be executed in a single transaction, and Step 3 will be done automatically via the program saving time and money! Additionally PsyFinance v2 will support cancellation of pending deposits & withdrawals, a feature that was highly requested by our users.
PsyFinance v2 is also introducing a fee structure to our Vaults. There will now be a 10% performance fee and a 0.1% withdrawal fee on all v2 Vaults. These fees will help sustain the continuous development of the protocol, and future products we release.
Finally, we’ll be rolling out new vaults after PsyFinance v2 goes live, and will be sure to update you all as they go live. First up: a scnSOL Vault! You can learn more about the scnSOL vault here.
Moving forward we will be adding more Vaults to accompany the scnSOL Vault, and are already working with a few key partners to get these Vaults up and running! If you have any recommendations, or Vaults that you think we MUST have, please let us know in our Discord.
We have also archived two of our v1 Vaults, the USDT-ETH Put selling Vault and the PAI-BTC Put selling Vault. If you are one of the users with funds still deposited in these Vaults please go withdraw as soon as you can!
There is also a liquidity mining initiative being developed for PsyFinance v2! We have been working with a few strategic partners to bring even more yield to our users, and will have more information on the mechanics once everything is completed. Alongside this liquidity mining initiative, we will be transitioning key v1 Vaults to the v2 model.
We’re extremely excited to be bringing you this new and improved version of PsyFinance, and we hope you all enjoy it as much as we enjoyed building it! To stay up to date on the latest developments, join our community with the following links.