Option-Based Structured Products
Structured Index Strategies Using On-Chain Vanilla Options
OLTA is evaluating the development of predefined structured products built on top of its vanilla index options. These would offer automated, transparent, and composable instruments designed to serve a variety of risk-return profiles, both for institutions and advanced DeFi users.
Rationale
Structured products are widely used in traditional finance to:
Generate enhanced yield in sideways markets
Offer capital protection with capped upside
Customize risk exposure to match investor profiles
In the context of tokenized index funds, these strategies could bring ETF-style convenience to sophisticated crypto positioning.
Illustrative Strategies
If implemented, OLTA’s structured offerings would initially focus on clearly understandable strategies:
1. Covered Call Index Notes
Strategy: Hold the index and sell out-of-the-money call options monthly
Goal: Earn premium income while retaining base exposure
Profile: Income-seeking, moderately bullish investors
2. Secured Put Notes
Strategy: Hold USDC and sell cash-secured put options on the index
Goal: Accumulate the index at discounted levels or earn yield if price stays above strike
Profile: Buyers waiting for entry levels; conservative strategies with yield bias
3. Capital Buffer Notes (Put-Spread)
Strategy: Buy a put at a lower strike while selling a put closer to the spot
Goal: Create partial downside protection at lower cost
Profile: Investors concerned about moderate drawdowns
4. Range Accrual / Knock-In Notes
Strategy: Earn returns if index stays within a predefined price band
Goal: Monetize stability in range-bound markets
Profile: Volatility-neutral or sideways market scenarios
5. Delta-Neutral Yield Notes (Delta-Neutral Vault)
Strategy: Simultaneously sell call and put options (straddles or strangles) while delta-hedging the portfolio
Goal: Capture implied volatility premiums with neutral price exposure
Profile: Advanced users seeking yield from volatility without directional bias
Deployment & Risk Framework
Strategies would be available through OLTA’s interface and via API calls
Customization may be supported for institutional clients
Each product would include real-time NAV tracking, maturity schedule, and historical payoff simulation
Strict eligibility filters would apply: Only indexes with sufficient liquidity, slippage profile, and pricing data would qualify
Status
These structured strategies are under active exploration. Launch would be subject to:
Governance approval
Legal and regulatory review
Integration with existing staking and option infrastructure
For institutional discussions or interest in co-developing strategies, please contact the OLTA team directly at business@olta.finance.
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