How are yields generated?
Yields are generated through sales of options contracts that are generated via the protocol.
Unlike many other vaults, PsyFinance produces sustainable yields through option strategies.
How are Strike Prices Selected?
PsyFinance uses a backtested model to select strike prices such that roughly ~95% of options expire out of the money. Currently for BTC, that model correlates to roughly 15% off spot for weekly expiries. In Delta terms, .03-.07.
I made a deposit into a PsyFinance Vault but it still says pending, why is that?
Vault deposits in the middle of the epoch will generate a deposit receipt and remain pending until the start of the next Epoch, currently weekly at 800 UTC. Your funds will automatically start earning yield upon the start of the next Epoch, at which point they will no longer be listed as pending.
If you have chosen to lockup your vault tokens to earn staking rewards, staking rewards will start accruing after your pending deposit is processed.
I made a withdrawal from a PsyFinance Vault but it hasn't entered my wallet, why is that?
If withdrawing during an epoch, your withdrawal will generate a withdraw receipt and show under “Pending Withdrawals”. Since your funds are being used to generate options, they cannot be withdrawn until after the current set of options expire after the current Epoch is over.
Amount withdrawn will be paid out automatically to your wallet on the same day after the epoch ends. Currently each epoch ends at Friday 0800 UTC weekly.
Are there any Vault Fees?
V2 Vaults have a fee structure of the following:
- Performance Fee: 10% of total yield returned to the user each epoch is gathered as a performance fee. If the vault returns no yield, there are no performance fees.
- Withdrawal Fee: 0.1% of total assets withdrawn from the vaults is gathered as the current withdrawal fee.
Will there be a token?
At the moment there is no PsyFinance token, however there is an exchange listed PsyOptions token $PSY.
Is PsyFinance Audited?