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Solana offers a unique opportunity to lower the barrier of entry for any user, regardless of how much capital they have, to participate in DeFi. The fundamental primitives of a complete financial system are nearing completion, though some key pieces are still missing. PsyFinance will add to the ecosystem through creating structured yield generating products.
Using option strategies to generate yield on idle single token assets requires lots of time and domain expertise. The barrier to entry for users is high, leading to wasted time manually compounding gains and unrealized opportunities to generate yield.
Automated Yield Strategies
PsyFinance vaults will automate option strategies for users. Each vault will execute a particular strategy, such as put selling or covered calls. Different strategies will have different expected returns, so users can select their vault to meet their own outlook on the market. Additionally, all yields are auto-compounded to maximize gains while minimizing effort.
Option strategies can be run in perpetuity, in a variety of market conditions. They do not rely on inflationary tokens, so you can rest assured that the yield will continue to be generated over the long term.
PsyFinance will eventually allow a variety of tokens as inputs into its vaults, allowing a truly composable yield generation infrastructure for other platforms in the Solana ecosystem to build upon.