This pool allows you to deposit stETH to write calls based on a selected strike price. Your yield is generated from premiums paid by call options buyers and performance of stETH during the epoch. Your deposited principal is subject to loss in case of a market upswing as you are selling covered calls. In this case, your upside will be capped and you may be relatively worse off than simply holding spot.
Risk of losing your entire investment due to systemic issues in the underlying chain, protocols, or assets
C
Economics
Risk impacting your return due to pool mechanics and volatility
Good
Yield Source
Your yield consists of option fees paid by long users on the Arbitrum blockchain
There are short-term incentives to encourage more deposits into the pool
Investment Strategy
This options pool earns yield in exchange for giving away part of the upside potential of ETH. The premiums earned may not be enough to offset any losses if call options expire in-the-money
Risk Details
Pool Fundamentals
C
Pool Economics
Good
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