Overview
RFY combines offchain strategy execution with onchain yield farming.
The protocol facilitates offchain strategy execution combined with onchain yield farming, enabling depositors to receive tradeable ERC-4626 receipt shares whose net asset value (NAV) accrues realized strategy returns and onchain yields. These receipts are paired with stable pools to ensure continuous exit liquidity, with optional redemption windows allowing direct vault settlement.
The problem
Composable yield tokens earn very low passive returns due to the lack of fixed rate strategies from onchain derivative markets. Most retail users cannot access the deep liquidity and execution quality required to run advanced strategies on these assets.
Consequences
Idle capital that could produce higher returns via active strategies.
Users forced to choose between onchain composability or institutional-grade strategies.
Limited ways for liquidity to flow between CEX market depth and onchain products.
Our solution
RFY enables offchain execution of fixed term advanced strategies while simultaneously deploying the onchain collateral into yield farms, issuing ERC-4626 receipt shares that provide composable exposure across DeFi.
Core elements
Execution, provided by vetted strategist, that run advanced option strategies offchain.
Onchain yields that optimizes idle collateral across DeFi to compound on strategy returns.
ERC-4626 receipt shares that represent a user’s pro rata claim on vault assets and accrued performance.
Mechanics
Receipts are ERC-4626 style vault shares with transparent accounting.
The vaults backing value grows as the vault receives settlement inflows and onchain yields.
Deposit
User connects their wallet and deposits a supported token into a vault.
Receipt minted
Vault mints an ERC-4626 receipt share, representing the depositor’s share.
Execution
Vetted strategic partners quote best prices and execute on behalf of users options strategies offchain. Meanwhile the deposited onchain collateral earns curated delta neutral onchain yields.
NAV accrual
Realized premiums and onchain yields are compounded and increase the vault’s net asset value (NAV). Receipts therefore rise in net asset value.
Liquidity options
Vault receipts are fully transferable/tradeable. Alternatively, users may redeem receipts during scheduled redemption windows for direct settlement.
The Strategic Value of RFY
RFY bridges the gap between institutional-grade option markets and onchain composable assets. It gives depositors access to advanced strategies while preserving onchain composability. The paired pool model and NAV compounding convert passive assets into actively managed positions that remain interoperable within DeFi.
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