ℹ️ About MYSO

MYSO Finance is a DeFi protocol that enables bespoke and fully customizable covered calls without counterparty risk for nearly any token. The offering allows token holders to lend otherwise idle tokens to generate upfront stablecoin revenue by writing call options.

MYSO can provide covered calls for almost any ERC20 token as long as it's on an EVM-compatible chain and has a +$10 million market cap. The minimum ticket size is $100,000 in covered call notional. Several institutional borrowers have been onboarded and are available to quote and provide stablecoin liquidity for these deals.

📈 How does a Covered Call work? FAQ - Lending via Covered Calls

👥 Benefits of Covered Calls

• Idle Tokens: users can capitalize on idle tokens without having to sell
• Cost efficiency: in case a conversion happens, covered calls don’t incur swap fees or market impact; this can be useful for e.g. treasuries looking to diversify into stables over time
• Instant revenue: revenue is received immediately and generated in stablecoins
• Trustless: settlement happens without counterparty risk
• Personalization: covered calls can be customized to ideally meet the unique needs of the user
• Transparency: settlement happens transparently on-chain

⛓️ How to Obtain a Fully Customizable Covered Call?

1. To obtain a fully customizable covered call, users can reach out to MYSO either via Discord, Twitter or Telegram
2. Utilizing its proprietary pricing engine, MYSO first presents indicative terms to potential users. Following this, users can then select the duration and the upside cap (i.e., strike) that suits them the best
3. MYSO then requests an off-chain firm quote from an institutional borrower. Should the user agree, MYSO proceeds with the on-chain execution:
   1. MYSO establishes Telegram group chats with the user and the institutional borrower, adding a Telegram bot to assist with execution
   2. Within this chat, the inst. borrower can submit their final quote via a Telegram bot
   3. This information is forwarded to the user for a final review and confirmation. The user is then guided on how to post their offer on MYSO’s platform, app.myso.finance. After completing their offer, the user confirms its on-chain availability through the Telegram bot, which in turn notifies the inst. borrower automatically
   4. The inst. borrower can then accept the offer on app.myso.finance based on the previously agreed terms, thereby finalizing the trade and settling everything on-chain

For this transaction, inst. borrower will be transferring a USDC amount that covers both the potential conversion amount and the upfront premium, in exchange for receiving the tokens. Upon expiration, there are two potential outcomes:

a) Borrowed token trading below strike

The inst. borrower will repay and user can claim their tokens back

b) Borrowed token trading above strike

The inst. borrower will keep the borrowed tokens and user gets access to already pledged cash collateral as conversion amount