Earn
Deposit USDC, receive soUSD. Your deposit funds collared loans; your yield is the option premium those loans generate, priced when each collar is written, not promised after the fact.
Target yield is 10-16% APY depending on market conditions, with a floor mechanism that holds when collar premiums compress.
Deposits and withdrawals, Deposit USDC into the vault and receive soUSD, your share of the book. Capital that is not currently funding a loan withdraws at any time. Capital that is funding an active loan is locked until that loan matures, you queue the withdrawal and it releases as the loans behind it unwind. There is no fixed lock-up term; your access tracks the book.
| Field | Description |
|---|---|
| APY | Premium income from the collars written on loans your deposit funds. Variable, moves with implied volatility and utilization |
| Utilization | % of pool capital in active loans. Higher = more premium income |
| Available to withdraw | Your idle balance, plus in-loan capital as those loans mature |
Where the yield comes from, Every funded loan writes a collar on the borrower’s collateral. The short call leg generates premium; that premium is the yield. It is endogenous to the book, uncorrelated to Fed rates and to other protocols’ emissions schedules. When implied volatility is rich, premiums are rich. When it compresses, yield compresses toward the floor.
What protects the principal, Each loan is over-collateralized and carries a put struck at or above the loan value. Above the floor, collateral covers the loan; below it, the put pays the difference. See Risks for the edge cases.
Withdrawal, Redeem soUSD for USDC. Idle capital redeems immediately; capital in active loans redeems as those loans mature.
No deposit or withdrawal fees.