Explain the Concept of a ‘Covered Call’ Strategy for a DeFi Treasury

A covered call involves the treasury holding its native tokens and simultaneously selling Call options on those tokens. This generates immediate premium income for the treasury.

The 'call' is 'covered' because the treasury owns the underlying asset. The risk is that if the token price rises above the strike price, the treasury misses out on further upside gains, as the tokens will be called away.