How to Use Options Vaults
DeFi options vaults (DOVs) automate options selling strategies. Deposit assets, the vault sells options weekly, and you earn premiums.
How Options Vaults Work
Covered Call Vault:- Deposit ETH
- Vault sells call options
- Collect weekly premium
- If price stays below strike, keep ETH + premium
- Deposit USDC
- Vault sells put options
- Collect weekly premium
- If price stays above strike, keep USDC + premium
Popular Options Vaults
| Vault | Strategy | Typical APY |
|---|---|---|
| . . . - | . . . . . | . . . . . . - |
| Ribbon | Covered calls | 5-15% |
| Thetanuts | Multiple strategies | 10-30% |
| Lyra | Put/call selling | 8-20% |
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Step-by-Step Instructions
1
Learn Options Basics
Understand calls, puts, strikes, and expiration. Know max profit and loss scenarios.
Tips
- ✓Covered calls cap upside
- ✓Put selling risks buying at strike
- ✓Premiums are your yield
2
Choose Vault Type
Covered calls for ETH holders, put selling for USDC holders.
Tips
- ✓Match vault to assets you hold
- ✓Check historical performance
3
Select Protocol
Ribbon, Thetanuts, or Lyra vaults. Compare yields and strategies.
Tips
- ✓Ribbon is most established
- ✓Check current APYs
- ✓Review audit status
4
Deposit Assets
Deposit before weekly epoch ends. Late deposits wait for next week.
Tips
- ✓Check deposit window
- ✓Friday close is common
5
Wait for Epoch
Vault sells options weekly. Premium flows to depositors.
Tips
- ✓Cannot withdraw mid-epoch
- ✓Yields paid weekly
6
Review Results
Check if options expired worthless (best case) or were exercised.
Tips
- ✓Exercised = gave up upside or bought asset
- ✓Worthless = kept premium + asset
7
Compound or Withdraw
After epoch ends, compound by redepositing or withdraw profits.
Tips
- ✓Compounding increases yield
- ✓Time withdrawals for epoch end