PsyLend - Structured Products Lending

At time of writing there is roughly 200M USD of notional in various crypto structured products and decentralized option vaults (DOV) on chain. These products mostly fully collateralize the options they sell using COIN (e.g., SOL for selling SOL Calls). While this is useful to stay in your underlying of choice, it's massively capital inefficient. Enter PsyLend, a new over-collateralized lending primitive that builds upon existing protocols' LP tokens to unlock the liquidity within crypto structured products. With PsyLend, users can:

  • Gain instant liquidity by borrowing against their DOV positions

  • Lever up their DOV Positions

  • Create a synthetic hedge against DOV underlying prices.

  • Lend assets (including USDC and SOL) to generate low-risk yield

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