Introducing PsyFinance v2

We’re extremely excited to be bringing you all a new and improved version of PsyFinance! We’ve made a ton of improvements to the protocol as well as gave the user interface a much needed overhaul. There have been quite a lot of updates made to this version of the protocol, so let’s take a deeper look into what PsyFinance v2 brings to the table!

Protocol Improvements

The major upgrade in PsyFinance v2 is our transition from American style options to European style options. This transition will dramatically improve capital efficiency which in turn will lead to an increase of premiums earned for our users!

Another major improvement comes in the form of our new Vault auction process. Previously, only white listed market makers could participate in the PsyFinance auctions, but not anymore! Auctions are now held on the PsyOptions x Serum order book so anyone can bid on the weekly options alongside market makers. Having a more competitive bidding process will improve option pricing which in turn will lead to increased premiums earned for our users. Our Vault auctions take place every Friday at 09:00 UTC.

Additionally, we’ve also improved the Vault auction process itself by introducing USDC bidding! Previously, you had to hold the token of which Vault you were bidding on to participate in auctions. (Example: Bids on the SRM Covered Call Vault were placed in SRM.) Now users looking to bid on one auction or multiple auctions only need to hold one asset, not a handful.

We’ve also been focused on improving the user experience. With PsyFinance v1, users had to do the following:

  1. Initialize a receipt
  2. Deposit/withdraw the receipt and
  3. Exchange the receipt next epoch

In v2, we have consolidated this process! Steps 1 and 2 will now be executed in a single transaction, and Step 3 will be done automatically via the program saving our users time and money! Additionally, PsyFinance v2 supports cancellation of pending withdrawals and deposits, a feature that was highly requested by our users.

PsyFinance v2 has also introduced a fee structure into the Vaults. There will now be a 10% performance fee and a 0.1% withdrawal fee on all v2 Vaults. These fees will help sustain the continuous development of the protocol, and future products we release.

UI Improvements

The PsyFinance UI has gotten a major overhaul. Other than the sleek new design, we’ve also added the following:

  1. A Landing Page
  2. A TVL and Premiums Earned trackers
  3. A Risk Assessment Page
  4. On site user support

A landing page was a must as users were being dropped directly into the app without a chance to get to know what we’re all about first! Now everyone visiting PsyFinance is greeted by a sleek, professional landing page that conveys what we’re all about. We’ve also added a TVL and All-Time Premiums Earned tracker so that users both new and old can see the progress PsyFinance v2 is making!

After entering the app and clicking on a Vault, you’ll notice there’s a new page available: the Risk Page. On this page users are presented with all of the details on a particular Vault so that they can make a more informed decision before depositing. The basics such as strike price, time until expiration, and current prices are still all there, but they’re joined by two major additions: a payoff chart and an average weekly yield chart. Adding these two features was a must for this release. We want our users to have everything they need to make informed decisions!

Finally, in the bottom left corner of the dApp page you’ll notice a message box. Clicking this button will pull up a support chat if you’re ever in need of some help navigating PsyFinance! 

We’re extremely excited to be bringing this new and improved version of PsyFinance to you all, and we hope you enjoy using it as much as we enjoyed building it!

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