UpYield Finance Docs
  • What is UpYield Finance
    • Why UpYield Finance
    • How is Yield Generated
  • FAQ
  • How It Works
    • Connecting your Wallet
    • Choosing a Vault
    • How to Deposit
    • How to Withdraw
  • Products
    • Basic Vaults
      • Covered Calls
      • Protective Puts
      • RWA Yield
      • Market Neutral Liquid Staking
    • Advanced
      • Delta-Hedge Liquidity Provision
      • Covered Call Spread
      • Iron Condor
      • Shark Fin
      • Diagonal Spread
      • Collar
      • Collaterized Debt
      • Uncollaterized Debt
  • The Protocol
    • Vaults Architecture
    • Vault Lifecycle
    • Smart Contract Architecture
    • Smart Contract Addresses
    • Strike Price Selection for Options
    • Options Settlement
    • Cross-Chain Execution
    • Protocol Fees
  • UpYield Finance DAO
    • Governance
    • DAO Treasury
    • Tokenomics
  • Security and Risk
    • Risks
    • Audits
    • Best Practices
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  1. What is UpYield Finance

Why UpYield Finance

DEFI really took off in the summer of 2020 (DEFI summer) and some of the original protocols defined the main categories: DEXes (Uniswap) and Lending protocols (AAVE, Compound). Multiple replicas appeared and in order to compete for users they started offering incentives (for example Sushi swap) such as liquidity mining and this is how the phenomena of yield farming. Of course, there were a myriad of scams and ponzis as well.

Then many yield farming protocols appeared. The problem is that none of those yields were sustainable and soon all the opportunities were gone (there is no free money). At the same time crypto derivative trading volumes have soared to levels higher than in spot markets. What structured products can offer is real, sustainable yield, extracted from market volatility or as we explain above offer alternative risk/reward profiles to investors. The first decentralised option vaults (DOV) protocols have appeared and they can be extended to implement well known structured products from TradFI or new blockchain specific ones.

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Last updated 1 year ago