Neuron pools are on-chain managed products that automate option writing strategies on ETH, USDT or WBTC, and Curve pool deposits, using the latter as the collateral.
{% hint style="info" %} For a primer on what options are and how they can be used in trading, you can visit either TastyTrade's excellent crash course or CoinTelegraph's in-depth crypto option article. {% endhint %}
Covered call and put-selling strategies are available at the time of the Neuron Fund launch, with more strategies* on the way.
Strategies collect weekly premiums and allow for safely adding up to 15% per year to an already yield-bearing liquidity deposit, thus making the summarized yield composable.
Users can deposit their assets into a smart contract, thus automatically running a specific options strategy, also using any yield farming strategy and compose it with an option selling strategy in Neuron Option Pool using wrapped token as collateral to mint options (see fig. above).
Users can employ any yield farming strategy from a Neuron Liquidity Pool + Curve liquidity deposits and compose it with an option selling strategy in Neuron Option Pool using wrapped tokens as collateral to mint options.
Another Neuron's feature is choosing from multiple collaterals minting an option contract. Think of it as multi collateral DAI, but for options and with more flexibility!
{% hint style="success" %} This allows for flexibility previously unseen by an average user: one can diversify their already owned assets while enjoying additional yield, not changing anything in their portfolio. Just applying another yield layer, basically. {% endhint %}
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Basically:
- a user can deposit an asset as collateral,
- it's wrapped into a yield-bearing token, while the deposit is locked in Curve, and
- the derivatives are automagically used for option selling.
* Coming soon