Rysk Finance is an Options Trading platform on DeFi, focused on generating sustainable Yield for assets like ETH, BTC, LSTs, and LRTs through a Covered Calls strategy optimized for the Onchain environment.
The project launched in 2022 with the goal of building uncorrelated profits, applying Dynamic Hedging Vault (DHV) for trading and hedging options risk, while allowing users to receive Yield immediately in USDC.
MAIN CONTENT
Rysk Finance redefines the Covered Calls strategy into a liquid DeFi asset.
Users receive Yield upfront in USDC without waiting for expiration.
The DHV and RFQ system helps maintain Delta Neutral, increases transparency, and optimizes capital.
What is Rysk Finance?
Rysk Finance is a DeFi protocol specializing in on-chain options trading, bringing the Covered Calls strategy from traditional finance into Web3.
The project allows users to create sustainable Yield from ETH, BTC, LSTs, and LRTs, thanks to the smart Delta Neutral risk-hedging mechanism. The difference is that users can receive profits immediately upfront instead of waiting for expiration.
What is Rysk Finance's mission?
Rysk Finance's goal is to provide a new layer of profit that is less dependent on market volatility, helping DeFi investors access sustainable Yield.
According to the development team's share, Rysk Finance aims to become the most optimal and transparent capital solution for Onchain options strategies, addressing weaknesses in liquidity and sustainable value in DeFi.
"We built Rysk Finance to bring Covered Calls Onchain effectively and transparently, adding a new layer of profit to DeFi."
Founder of Rysk Finance, 2022
What are the standout features of Rysk Finance?
Rysk Finance differentiates itself by combining Covered Calls, Yield upfront, and a fair pricing RFQ system.
Covered Calls can be traded
Rysk redesigns Covered Calls into a liquid DeFi asset, creating stable Yield for highly volatile assets.
This overcomes the limitations of previous options protocols, which struggled to effectively implement Covered Calls Onchain.
Yield upfront in USDC
Users receive Yield immediately in USDC, instead of waiting for the expiration date of the options contract.
This is a significant improvement, as in DeFi, sustainable Yield on core assets like ETH and BTC is often low or highly volatile.
Custom Target Price
Users can choose Strike Price according to their needs, thereby adjusting the level of profit and risk accordingly.
This personalization creates an advantage over traditional options products which are less flexible.
Multi-asset and collateral support
Rysk Finance supports ETH, BTC, LSTs, LRTs, and many combined collateral types, optimizing capital efficiency.
Multi-collateral partial collateralization allows flexible capital management and reduces overall risk.
RFQ and fair pricing mechanism
The RFQ system combined with Onchain pricing ensures transparent pricing and limits slippage.
Thus, users can be assured that they receive options at a reasonable price, even when the contract has a long duration.
"Transparency in pricing is a key factor for DeFi Options to truly grow and attract large capital flows."
Vitalik Buterin, co-founder of Ethereum, in a discussion about DeFi Options, 2023
How does Rysk Finance operate?
Rysk Finance operates through DHV and Smart Contract, managing the entire process from collateral to settlement.
Users deposit assets and choose Strike Price
Users deposit assets (e.g., kHYPE) into DHV, choose Strike Price to open a Covered Call position.
Smart Contract initiates the contract and stores information Onchain.
Pricing and quoting
RFQ and Onchain pricing calculate options based on Strike, expiration, and market conditions.
DHV maintains Delta Neutral status through dynamic hedging, minimizing price volatility risk.
Mint options and pay Yield
Smart Contract issues Covered Call and pays Yield upfront in USDC to users.
The system updates trading indices to ensure transparency.
Hedging and risk management
Throughout the contract period, DHV trades options Onchain to maintain Delta Neutral.
The real-time pricing mechanism helps avoid being exploited by arbitrage.
Settlement at expiration
Upon expiration, the system compares the asset price with the Strike: if lower, returns the asset; if higher, pays the corresponding USDC Strike.
The multi-collateral mechanism handles the remainder to ensure fairness.
"Rysk's dynamic hedging vault sets a new standard in DeFi Options risk management."
Lemniscap report, 2023
Rysk Finance's development roadmap
The project is still updating the detailed roadmap but has launched version V12 with asset support like UPUMP, WHYPE, kHYPE, UETH, UBTC.
The development shows the team is focused on expanding multi-asset capabilities and optimizing user experience.
Who is behind Rysk Finance?
Information about the founding team is not fully publicly disclosed, but the project is backed by many reputable investment funds.
The participation of top funds shows strong confidence in the potential of Rysk Finance.
Which investors have funded Rysk Finance?
Rysk Finance has raised $1.4 million in a Pre-Seed round, led by Lemniscap along with other funds.
In October 2023, the project received an additional $402,000 funding from Arbitrum Foundation.
Date Amount Investor 31/01/2023 $1.4 million Lemniscap, Ascensive Assets, Manifold, Encode Club, Starlab Ventures, Yunt Capital 13/10/2023 $402,000 Arbitrum Foundation
Rysk Finance's official information channel
Website: https://app.rysk.finance/
X (Twitter): https://x.com/ryskfinance
Discord: https://discord.com/invite/ZH34Fc3D5S
Telegram: https://t.me/+EVqrDtBEfvU4YTk0
Frequently asked questions
When was Rysk Finance launched?
The project was introduced in 2022 with the goal of optimizing Covered Calls on Onchain.
How do users receive Yield on Rysk Finance?
Users deposit assets, open Covered Calls, and receive Yield upfront immediately in USDC.
What assets does Rysk Finance support?
The main assets include ETH, BTC, LSTs, LRTs and many other assets like UETH, UBTC.
Who has invested in Rysk Finance?
Lemniscap, Ascensive Assets, Manifold, and many other funds have invested, alongside funding from Arbitrum Foundation.
What is the biggest difference of Rysk Finance?
Yield upfront in USDC and a transparent RFQ system make Covered Calls Onchain more effective.
Source: https://tintucbitcoin.com/rysk-finance-la-gi/
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