Introduction to DOVs
Earn in all market conditions with our sophisticated suite of strategies
Options can seem complex, as strategies can involve multiple strikes, expiries, and several other factors that an investor needs to consider. Additionally, the gas fees associated with frequently rolling options can significantly eat into the yields generated. DOVs allow users to bypass the hassle of options strategies and only have to simply stake their assets in vaults.
A walkthrough of everything you can achieve with Polysynth DOVs
The premium collected from selling options represents the yield and is distributed among users in proportion to their deposits. A user only needs to pay network gas fees at the time of deposit or withdrawal, and Polysynth takes care of all the operational gas fees thereafter.

Unique Benefits of Polysynth DOVs

Some of the salient benefits of POV:
  1. 1.
    A wider range of structured products: Polysynth offers a much wider and all-encompassing suite of structured products to earn across all market conditions. Unlike other protocols which expand offerings across asset classes, we are focusing on expanding in terms of strategies. Expanding offerings in terms of asset classes somewhat defeats the purpose of options, as most crypto assets are highly correlated. On Polysynth, in addition to a wider range of products, there will be different versions of strategies with varying risk-return payoffs based on an investor's risk appetite.
  2. 2.
    Treasury Management Solutions: We have developed strategies that enable DAO treasuries to achieve a) Treasury Diversification and b) Downward Price Protection without selling their native tokens. Our treasury diversification strategy enables DAOs to sell covered calls on their native token powered by our RFQ system to generate sustainable yields. Whereas the downward price protection strategy combines selling a covered call and buying a put on the DAOs native token to safeguard the treasury’s dollar value.
  3. 3.
    DOV Staking Rewards: Investors earn POL Tokens every time they deposit assets in our DOV. The DOV Staking Rewards is based on a formula that rewards total fees contribution by the investor in an epoch.

FAQs

What are structured products?
Structured products are packaged financial instruments that use a combination of derivatives to achieve some specific risk-return objective, such as betting on volatility, enhancing yields or principal protection.
What kind of structured products does Polysynth have?
We currently offer structured products on BTC, ETH and MATIC, which generate high yield through automated covered call and put strategies. For more information on the strategies, please check out our DOVs for a detailed breakdown.
What is the risk of the covered-call strategy?
The primary risk of running a covered-call strategy is that depositors could give up upside in exchange for guaranteed yield. By selling a call option, users are essentially promising to sell the underlying asset at the strike price even if the spot price at expiry is higher than the strike price. This can potentially result in a negative yield on the underlying asset. Please note that although a negative yield is uncommon, depositors will still be tremendously up in dollar terms as the underlying asset would have appreciated significantly in a short period.
What is the risk of the cash-covered put strategy?
The primary risk for running a cash-covered put strategy is that the vault may incur a loss if the difference between the strike price and the underlying price at expiry exceeds the premium collected.
Selling cash-covered puts serves as a great strategy to accumulate assets cheaply.
How do I process a withdrawal?
We offer two types of withdrawals:
Instant: Only applicable to funds that are yet to be actively used in the vault. You can withdraw it anytime until 8 AM UTC on Friday.
Standard: It's a two-step withdrawal process that you can initiate anytime. You can submit a withdrawal request, and the funds will become available for withdrawal at 12 PM UTC on Friday.
Are standard withdrawals subject to profit or loss of the week?
Yes, since you are initiating a withdrawal for vault shares, those shares are subject to either the profits or losses of that week, which will adjust the final withdrawable amount.
How can I find out the next strike in advance?
There is no way to know the strike in advance, as it's calculated using last-minute data feeds.
Are the management and performance fees included in the expected APY?
Yes.
Where can I see the historical performance?
Every strategy has a cumulative yield chart which represents historical performance.
What asset are the vault yields paid in?
Yields on every strategy are paid in the same asset you deposit. For example, in the covered calls where you deposit BTC or ETH, the yields are also paid in BTC or ETH, respectively, and in the case of covered puts where you deposit USDC, the yields are paid in USDC itself.
My options are expiring ITM, do I need to do something to exercise?
There is no further action needed on your end. Our strategies self exercise when needed.
What if I don’t withdraw at the end of the cycle?
Your deposit and the yield earned will automatically roll over into the next cycle and earn auto-compounding returns.
Help! I am having trouble using the app.
Reach out to us on Discord, we'll help you out.
Copy link
On this page
Unique Benefits of Polysynth DOVs
FAQs