- Blue Streak by Premia
- Posts
- Strategy Vaults on Premia Blue
Strategy Vaults on Premia Blue
Access DeFi Options with One-click Strategy Vaults on Premia Blue.
Weka
September 25, 2023
Providing liquidity for options can be a daunting task with a lot of moving parts.
That’s why we’ve built strategy vaults for Premia Blue — automated liquidity strategies, aka the easiest way to get into DeFi options with less risk and more predictability.
Vaults are the perfect alternative for users who want to earn yield from DeFi options without having to deal with the complex nature of range orders & concentrated liquidity.
With an emphasis on flexibility, simplicity, and ease of use, vaults transform the way users reap the benefits of Premia Blue with minimal effort.
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 with Premia Blue! With the launch, Premia Blue provides short volatility vaults which are very similar to Premia v2.
Note: The screenshot does not show the real-time data
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 of expiring ITM and losing yield is minimal.
Future Vaults
What’s next for Strategy Vaults on Premia Blue?
Some of the other strategies we have planned for Premia Blue include the C-level vault (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 on Premia Blue
Premia Blue channels liquidity (price quotes) from multiple sources into one handy orderbook for traders.
The sources include Vaults, liquidity pools, the Arbitrum Nova orderbook, and the OTC quote network, together allowing for optimal pricing and capital efficiency.
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!
Premia Blue is Live on Arbitrum!
Ya ready Anon? Get started trading DeFi options on Premia Blue!
Premia Blue is the first non-custodial options settlement layer with fully customizable options parameters and risk exposure.
Maximize capital efficiency, define your own risk, and optimize fees earned with Premia Blue on Arbitrum!
Reply