Thetanuts Finance partners with WOO DAO for Treasury management
Thetanuts’ unique offerings will help WOO DAO better diversify its treasury portfolio and form an options market for the WOO token.
Today, we are excited to announce that we are officially partnering with WOO DAO, which drives community engagement for one of the most liquid crypto exchanges in the world that provides traders with superior order execution at zero fees.
This partnership will help WOO DAO improve their treasury management objective of diversification into USDC. Importantly, with this partnership, we are also able to help WOO DAO create an options market by injecting large amounts of liquidity. This will lead to more market makers providing competitive bids, and ultimately improve WOO token liquidity and trading volume. Overall, this partnership would help WOO DAO diversify their treasury, grow their ecosystem, and improve the WOO token’s utility.
If you have not read the article on our approach in DAO treasury management, you may check out this article where we delineated the rationale behind structured products as a vehicle for DAO treasury management.
The Mandate
Through its governance process, WOO DAO has authorised the creation of a customised structured product with Thetanuts Finance. The key characteristics (strike selection, tenor, vault cap, etc.) of this structured product is customized for WOO DAO. Retail investors are also able to participate to earn more WOO tokens in the form of option premiums and trade their WOO tokens for USDC when the physical call option expires in-the-money. WOO DAO Treasury is now live on BSC mainnet (click here).
Key Characteristics:
- Seed Amount
To start, WOO has seeded the vault with $200,000 notional of WOO tokens with the vault cap of $500,000 notional $WOO.
2. Monthly Expiries
WOO DAO has selected a monthly expiration on their vaults which allows the vault to earn more premiums by selling longer-dated options.
3. Yield Generation
WOO DAO has opted for a call vault with a physical settlement. The yield generated through option premiums would be in the form of $WOO tokens. If the option expires in-the-money, $WOO is physically settled for USDC.
4. Strike Selection & Settlement Type
The WOO DAO vaults would be selling physical call options 10% (delta) out-of-money.
5. Fee Structure
Thetanuts Finance does not take any fees from the yield generated by our vaults. This would ensure that WOO DAO and WOO token holders can maximise their yield generated.
About Thetanuts Finance
Thetanuts Finance’s DeFi structured products and its customizable vaults are the future of generating yield. The platform is designed to provide treasury management for DAOs, as well as help retail traders earn yield on their tokens. Thetanuts’ vaults simplify the process of options trading, making previously complex instruments easy for any investor to access and ready to match each individual’s own investment outlook. Launched in August 2021, Thetanuts is founded by a team of programmers, hedge fund managers, and financial analysts who specialize in building financial crypto products. Our notable investors include Deribit, 3AC, Jump Crypto, and QCP Capital.
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