A tokenized vault holds a specific ERC20 token and gives shares to the users that deposit assets in it. When a user deposits funds, the vault will mint a specific number of shares for the user. When the user withdraws tokens from the vault, the correspondent amount of shares will be burnt.

The vault fee structure consists of a 1% annualized management fee.

Structured products are pre-packaged investments that normally include assets linked to interest plus one or more derivatives. They are generally tied to an index or basket of securities, and are designed to facilitate highly customized risk-return objectives.

Decentralized Options Vaults (DOVs) are structured products offered on-chain, closely related to TradFi counterparts that combine several financial instruments to create a whole new payoff curve. The core function of DOVs is to use investors’ capital and employ options trading strategies in a completely automated and decentralized manner. These strategies may include covered calls, protective puts, or straddles. Before DOVs, option strategies were only available to accredited investors through over-the-counter (OTC) trading or by self-execution on option exchanges like Deribit.

While DEFI removes some of the risks related to centralisation, there are other risks such as smart contract risks. Please refer to the risk sesction in docs.

The governance token needs to be staked in order to be eligible for DAO votes and for staking rewards. At the moment 25% of the protocol fees are paid to staked token holders.