PsyFinance x Serum Vault Rewards Program
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June 22nd, 2022

We’re excited to announce that PsyFinance and Serum have teamed up to provide Serum rewards to PsyFinance's structured products! Through a governance vote the Serum community has provided 2,000,000 SRM tokens to be distributed to PsyFinance vaults. The rewards period will run for roughly 4 months beginning the week Jun 6th 2022. 

Initially, vaults will have emissions durations and amounts decided by the PSY DO. However, we plan to introduce governance proposals next week for the community to take part in deciding SRM emissions. 

Read on for more details on how the rewards will be distributed and why it's an important step for the Serum and PSY ecosystems.

What is it?

Token incentives are usually provided to DeFi platforms to encourage liquidity into their respective ecosystems. In this case, Serum is providing SRM tokens to incentivize use of the PsyFinance structured products vaults, which run through Serum’s order books.

How?

Each vault will have a set number of SRM rewards per week allocated to it. Every two weeks emissions per vault may be adjusted to meet the demands of our community. For a detailed explanation of how liquidity mining rewards are distributed read our docs here

Within each vault rewards are split according to TVL of each deposited wallet address. Additionally, users can boost their rewards up to 2.5x by locking-up their vault tokens for set periods of time. This provides users a chance for increased rewards, while aligning incentives with the protocol. See docs here for full details of how to lock-up tokens to boost your rewards.

How to take advantage of SRM rewards:

  1. Head over to PsyFinance and select the option strategy vault that fits your goals. 
  2. Select your desired lock-up period and deposit into a vault. 
  3. Your funds will be included in the subsequent options mint. Once they are, you will automatically receive vault tokens representing your share that will be staked for the lock-up period indicated. 
  4. Once your vault tokens are staked, you can claim your rewards anytime after a full stakepool epoch, starting each day at 0000 UTC.

How much?

SRM reward rates per day for the period of June 20th to July 4th are below. With increasing rewards in subsequent epochs to be decided by governance voting. 

*Coming soon! Existing V2 vaults require additional development work to enable staking.
*Coming soon! Existing V2 vaults require additional development work to enable staking.

Why is it important?

Decentralized Option Vaults (DOVs) have been at times criticized for selling their options behind closed doors to market makers. The lack of transparency leads to end users feeling that their yields are not being maximized and leads to a lack of trust between market participants.

At PsyFinance, we’re creating the most transparent DOVs in the ecosystem, and as such are moving our V2 vaults to an open auction through Serum’s Order Books. We’ve already conducted multiple auction sales through this method. This is important for both Serum’s and PsyFinance’s users because:

  • Open Access: Democratizes access to the options sales - anyone with an internet connection can bid on the options each week
  • Boosts Option Flow: Increases flow of long tail options volume through Serum order books
  • Diversification: Providing Serum incentives through PsyFinance will aide in diversifying the Serum holder base to a new segment of DeFi users that may not be exposed to spot trading (i.e. derivative fans)
  • Transparency: Increase transparency of the bidding process so all PsyFinance users can observe in real time how their yields are being generated. 

Coupled with the changes to the options flow through Serum, we’ve rolled out a completely redesigned V2 user interface at https://psyfi.io that pushes the limit of risk management and transparency for end users.

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