Summary

Approval request to deposit of 8 ETH from the treasury to the Polynomial Ethereum Covered-call Vault

Motivation

We want to increment our treasure's capital efficiency through an ETH based strategy.

Strategy details

Through the use of a weekly automated covered call strategy, the Polynomial vault generates a return on it's deposits. In order to effectively compound the returns for depositors over time, the vault reinvests the yield gained back into the strategy.

Projected APR: 18.29% Overall Vault Performance: 37.91%

Risks

The major risk of implementing this covered call strategy is that the vault will suffer a weekly loss if the call options sold by the vault expire in the money.

Operation Details

Snapshot status

Treasury liquidity: 8,43 ETH Requested liquidity: 8 ETH*

Operation actions

Bridge 8 ETH to Optimism Deposit 7,7 ETH (sETH) into fx ETH Covered Call