Yield Enhancement Products

What are Yield Enhancement Products?

In traditional finance, yield enhancement products allow users to earn a high capped yield in return for a downside risk of the underlyingasset. The yield is generally higher than that of Principal Protected Products. Yield enhancement products can include some downside protection with a limited safety net in case of the underlying price falls. If the underlying price falls below the safety net at maturity, the performance of the products will be as negative as holding the equivalent shares of the underlying.

Vovo Yield Enhancement Products

Vovo creates yield enhancement products with various payoffs in DeFi by selling various on-chain options. Instead of relying on liquidity from offchain market makers via offchain communication, like most of structured products protocols are doing, Vovo products are fully decentalized and automated by sourcing the liquidity onchain. We will be integrating with Primitive Finance options and Opyn's Squeeth products to provide high yield products for users. More details will be shared when the products are ready.