Overview

Option Structures for Index Exposure (Under Consideration)

OLTA may explore the development of an on-chain options module for its index fund tokens. This framework would enable users to access risk-managed strategies such as hedging, yield generation, and leveraged exposure directly on top of structured index products.

This module is currently under governance and regulatory review, and its rollout will depend on user demand, infrastructure readiness, and liquidity validation.

Purpose of the Options Module

  • Enable users to access hedging tools against market downturns (via puts)

  • Allow leveraged exposure to index upside (via calls)

  • Introduce yield strategies through option selling (covered calls, secured puts)

  • Enhance OLTA’s appeal to experienced DeFi and institutional users

Strategic Proposal

Introducing options on indices could provide:

  • Downside protection (via puts)

  • Upside leverage (via calls)

  • Yield strategies (covered calls, secured puts)

  • Volatility structuring (risk-managed exposure)

These tools would enhance OLTA’s value proposition for advanced users and broaden the spectrum of index-based strategies.

Options would only be enabled on indices with deep liquidity and verified NAV tracking. Full collateralization and compliance safeguards will apply to all modules.

Custody & Execution Access

To support secure and convenient access, the options module would be compatible with:

  • Institutional custody platforms (e.g., Fireblocks, Anchorage)

  • Retail wallets (e.g., MetaMask, Web3Auth & WalletConnect-compatible wallets)

This dual-access design ensures that both professional and individual users can interact with the options layer efficiently, depending on their custody preferences.

Development Roadmap

OLTA envisions a phased approach:

  1. First step: Vanilla European-Style Options: Cash-settled options that can only be exercised at expiry, but payouts remain claimable on-chain at any time after.

  2. Second step: Advanced Option Types: American-style options (exercisable anytime before expiry), option spreads (paired calls or puts for defined risk), and structured legs combining multiple strikes or maturities.

  3. Then Option-Based Structured Products: Predefined strategies designed for advanced retail or institutional profiles

Each phase will require internal validation, governance approval, and strict compliance alignment.

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