How Can a DAO Use an Options-Based Vault to Generate Yield on Its LP Tokens?

A DAO can deposit its LP tokens into an options-based vault that specializes in selling options on the underlying assets represented by the LP token. This allows the DAO to earn both trading fees from the liquidity pool and option premiums from the vault, stacking yield on the same capital base.

What Is a Security Token Offering (STO) and How Does It Differ from an ICO?
How Does a DEX Generate Revenue beyond Transaction Fees?
What Is the Difference between an IPO and a Security Token Offering (STO)?
What Is the Difference between a ‘Covered Call’ and a ‘Naked Call’ Strategy?
What Is the Primary Difference between a “Short Strangle” and a “Short Straddle” Options Strategy?
How Can a DAO Use Its Treasury to Participate in Yield Farming or Staking to Generate Revenue?
What Is the Difference between Approving a Token for a Protocol versus Depositing It into a Protocol’s Vault?
How Can a DAO Use European Options to Generate Yield on Its Treasury Assets?

Glossar