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Strategy Vaults on Premia Blue
DeFi options for all with Premia's Beginner-friendly One-click Strategy Vaults!
Weka
June 29, 2023
Let’s talk more our Strategy Vaults and how they can help you get ahead on Week 3/4 of the Interstellar Trading Competition.
Providing liquidity for options can be a daunting task with a lot of moving parts. That’s why we built Vaults for Premia Blue — simplified automated yield strategies, aka the easiest way to get into the DeFi options game with less risk and more predictability.
Vaults are the perfect alternative for users who want to earn yield from DeFi options but don’t want to deal with the complex nature of range orders & concentrated liquidity.
With an emphasis on flexibility, simplicity, and ease of use, Vaults will transform the way users reap the benefits of Premia Blue with minimal effort, and here’s how!
Vaults in Premia v2 vs Premia Blue
DeFi options can be daunting for users searching for passive income.
Especially with concentrated liquidity & range orders, LPing for DeFi options requires active management to be optimally profitable.
We’re aiming to make DeFi options for all, including complete beginners.
That’s why earlier this year, we launched Premia’s first automated options strategy vaults, aka Knox Vaults. As a risk-minimized product created to match simply HODLing, they were the perfect blueprint for more strategies to come.
Moving to the present and Premia Blue testnet! Here’s the first glimpse into the Strategy Vaults available during the Interstellar Trading Competition on Premia Blue testnet:
Note: The screenshot does not show the real-time data
At the initial launch this week, Premia community can test the following Strategy Vaults:
Short Volatility Vaults
These Vaults are based on underwriting options on a regular basis to earn yield.
The DeFi options sold by these Vaults are very far out-of-the-money, meaning their potential risk is minimized.
Future Vaults
What’s next for Strategy Vaults on Premia Blue? Some of the other strategies we have planned for Premia Blue include Premia V2 pools and Knox Vaults.
Just like Short Volatility Vaults, both of these Vaults base their yield on automating DeFi options selling strategies to earn passive income.
We’re also planning to add more Strategy Vaults, such as options arbitrage, after the mainnet launch of Premia Blue!
Create Your Own Strategy Vault: Democratizing DeFi Options Markets With Premia Blue
Just like with permissionless liquidity pools, any third-party provider can create Strategy Vaults on Premia Blue!
This means that you can participate in strategy discovery, add new ways to monetize liquidity and truly democratize the DeFi options marketplace together with Premia.
Over time, we’ll implement a Contributor program to showcase third-party Vaults on the Premia Blue interface. The program will unlock:
Increased volume on Premia
Vault performance fees for creators
Benefits of collective liquidity across Premia Blue
The Contributor program will benefit both Premia thanks to increased volume, and vault creators via the fees. Get ready to build with us, Anon!
Now, let’s talk about how Premia Blue’s systems come together for collective liquidity, and how Vaults play into it!
The Power of Collective Liquidity
Premia Blue channels liquidity (price quotes) from multiple sources into one handy orderbook for traders.
The sources include Vaults, liquidity pools, and the OTC quote network — allowing for optimal pricing and capital efficiency. To learn more about pricing DeFi options on Premia Blue, check out our previous blog post.
Moreover, returns from executed strategies are split across liquidity within the vault, allowing users to leverage its collective liquidity.
This results in increased capital efficiency and gives everyone an opportunity to benefit!
In case passive Vaults’ strategies are not quite your thing and you’re ready to immerse yourself into the heat of things, check out the new Options Strategy courses in the Premia Academy!
That’s it for now! Strategy Vaults on Premia Blue make DeFi options markets more accessible, efficient, and open than ever before.
There’s still time to join the Interstellar Trading Competition and earn rewards! Here’s how to start:
Join the conversation