What Is an Options Vault and How Does It Generate Yield for a DAO Treasury?

An options vault is a smart contract-based automated strategy, typically implementing a covered call or put-selling strategy. A DAO treasury can deposit its assets (like native tokens or stablecoins) into the vault.

The vault automatically writes and sells options on those assets, collects the premium, and compounds the yield. This allows the DAO to generate passive income on its holdings without needing an active, dedicated trading team, automating the execution of a conservative options strategy.