Eden DeFi Options Income

• You Invest Your Crypto (or Fiat): Provide the crypto asset (e.g., ARB, ETH, BTC) you wish to put to work, or provide fiat/USDT for us to convert into the chosen asset.

​

• Eden Deploys to DeFi Vaults: We securely transfer your crypto to our operational wallet and deposit it into a selected automated decentralised on-chain options protocols

​

• Automated Yield Generation: The vault automatically executes an options strategy (like selling covered calls bi-weekly) using your deposited crypto. The income generated from these option premiums is your yield, typically paid in the same crypto asset or auto-compounded.

​

• Ongoing Management & Monitoring: Eden continuously monitors vault performance, manages any "boosted" rewards (like platform tokens, which we may convert to your base crypto), and ensures the strategy aligns with our outlook.

​

• Returns After Term: At the end of your 3-month lock-up period, Eden facilitates the withdrawal of your original crypto plus all accrued yield from the vault, converts it to USDT/fiat as per your needs, and returns it to you.

• Crypto holders (e.g., ARB, ETH, BTC) seeking to generate potentially higher yields than traditional staking or lending.

​

• Investors who are comfortable with the principles of Decentralized Finance (DeFi) and understand the associated higher risk/reward profile.

​

• Individuals interested in benefiting from options selling strategies without needing to manage the complexities themselves.

​

• Those targeting a variable APY potentially exceeding 20% (gross) and understand this is not a guaranteed rate.

• Higher Yield Target: Aims for a gross APY of 20%+ through option premium generation in DeFi.

​

• Automated Options Strategies: Leverages sophisticated, automated vaults on  that manage strategies like covered calls.

​

• Access to DeFi Opportunities: Participate in innovative yield-generating mechanisms within the DeFi space.

​

• Professional Oversight by Eden: We handle the research, vault selection, DeFi transactions, monitoring, and management of any auxiliary rewards.

​

• Yield Accrual in Kind: Typically, yields are earned in the same crypto you deposited, allowing your underlying crypto holding to grow.

​

"Our Eden DeFi Options Income plan aims for higher returns by using advanced automated strategies in the newer world of Decentralized Finance (DeFi). While exciting, it’s important to understand that with higher potential rewards come different types of risks compared to traditional savings. We believe in being clear about these so you can make an informed decision.

​

• Value of the Digital Asset Can Change:

  • This plan invests in digital currencies like Ethereum. The price of ETH, like other digital currencies, can go up or down due to market conditions.

 

• What this means for you: Even if our strategy successfully generates extra ETH for you, if the overall price of ETH falls, the total dollar value of your investment could decrease. Conversely, if the price of ETH rises, your investment value could increase significantly, on top of the income earned. The income helps cushion against price drops, but doesn't eliminate this market risk.

​

• Income Can Vary:

  • ​The income from these vaults is generated by selling 'options' (we'll explain more below). The amount of income earned from selling options depends on how active and volatile the market is

​

​​

• What this means for you: The projected APY (Annual Percentage Yield) is an estimate based on current and past conditions. The actual income you receive can be higher in some weeks/months and lower in others. It's not a fixed interest rate.

​

• How the 'Covered Call' Strategy Works (Example used by some vaults):

  • Many of these automated vaults, like the WETH-C vault on Thetanuts, use a 'covered call' strategy. It sounds technical, but here's a simple way to think about it:

    • Imagine you own a house (your ETH tokens). You can 'rent out the option for someone to buy your house at a higher price by a certain date.' For giving them this option, they pay you 'rent' (this is the income or 'premium').

​​​

• Scenario A: Price Stays Below Target. If the house price (ETH price) doesn't go above their target buying price by the date, they don't buy it. You keep your house (your ETH) AND you keep the rent (the income). This is great!

​

• Scenario B: Price Goes Above Target. If the house price (ETH price) does go above their target buying price, they will likely use their option to buy your house (your ETH is sold at that pre-agreed higher price). You still keep the rent (the income) and the money from the sale. You've made a profit, but you miss out on any price increase above that target selling price.

​

• What this means for you (with Covered Calls):

  • Steady Income Potential: You can earn regular income (the 'rent').

​​

• Limited Upside: If the price of ETH shoots up very quickly, your ETH might be sold at a lower price than it could have reached, meaning you miss out on some of the very top gains for that period. The vault usually reinvests the proceeds to continue the strategy.

 

​​

• Other Vault Strategies (Beyond Covered Calls):

  • Some vaults might use other automated strategies, like 'cash-secured puts' (a way to earn income by agreeing to buy an asset if its price drops to a certain level) or more complex options combinations.

​

​​

• What this means for you: Each strategy has its own specific way of generating income and its own risk profile (e.g., with cash-secured puts, you might end up buying an asset when its price is falling). Eden Investments selects vaults with strategies we believe are suitable for the product's goals, but the mechanisms can vary. We will always aim to explain the core strategy of any vault we use.

​

• 'DeFi'  Platform Risks:

• • The automated vaults we use are part of DeFi, which is innovative but different from traditional, regulated banks.

​

• • Smart Contract Risk: DeFi platforms run on complex computer programs called smart contracts. Think of them as automated vending machines for finance. While they are checked by security experts ('audited'), there's always a small risk that a bug or a flaw in the code could be exploited by hackers, potentially leading to a loss of funds in that specific platform.

​

• • Oracle Risk: Some DeFi platforms rely on external data feeds (called 'oracles') for price information. If these oracles provide incorrect information, it could cause the automated strategy to make a wrong move.

​

• • Platform Governance Risk: Some DeFi platforms have 'governance tokens' that allow holders to vote on changes to the platform's rules. Unexpected changes could potentially affect how a vault operates.

​

• • What Eden Does: We mitigate these risks by choosing established DeFi platforms that have undergone multiple audits, have a strong reputation, significant funds managed, and transparent teams. However, these risks are inherent to participating in the DeFi space."