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PsyFi March 2023 Update

With Q2 2023 well underway, let's take a quick look at how we ended the quarter here at PsyFi.

Author

Nazri Nordin
April 11, 2023

March was a busy, yet exciting, month for everyone in the ecosystem; from the Foundation revealing the location and dates of this year’s Breakpoint to announcing the winners of the Solana Grizzlython Hackathon.

Similar to the tempo of the ecosystem, PsyFi too has been grinding it out this past month. With Q2 2023 well underway, let's take a quick look at how we ended the quarter here at PsyFi.

Gearing up for success

Setting up the DAO for long term success has always been on the forefront of our priorities. As such, some of the DAO contributors were discussing tokenomics with a group of thought leaders and the idea of accelerating SAFT vesting (unlocking all investor’s tokens) came up.

In theory, paper hands will sell while token price and liquidity is low (relative to historical data), leaving only the long term believers in the DAO.

The forum post below serves as a starting point for discussion as to whether investor vesting should be accelerated. We need your help in deciding if this is something that would positively impact the DAO and community as a whole.

Click on the link below to make your opinion and voice count.

Vault Performance

Next, we have the performance of our vaults.

Our BTC Secured Put vault earned a total of 5,239.94 USDC in premiums, while our scnSOL and SOL Covered Call vaults earned a total of 90.79 SOL and 37.57 SOL, respectively.

PsyLend 🤝 mSOL

In March, we introduced the support of $mSOL for PsyLend.

At time of writing, PsyLend has:

  • $362.11k supplied in total

  • $37.60k borrowed in total

With $mSOL representing:

  • 16% of total supply

  • 25% of total borrows

New vault, who dis?

On the product front, we introduced a new primitive to the Decentralized Option Vault space—leveraged strategy vaults.

With our leveraged strategy vaults, depositors will have the ability to take leveraged positions using the same collateral they normally would in a traditional Covered Call or Secured Put vault.

This provides greater capital efficiency and the potential for higher returns.

If you’re interested in bidding on these advanced option strategies, feel free to reach out to us.

Negative borrow rates

Lastly, on a governance front, 2 proposals incentivizing borrows on PsyLend passed.

As a result, borrowing rates on PsyLend are negative, which means that borrowers are being paid to borrow.

At time of writing, the borrow rates on PsyLend are:

  • 6.73% for $USDC

  • 3.65% for $SOL

  • 8.71% for $mSOL

What’s in store for next month?

With the conclusion of the Solana Grizzlython Hackathon, we’ve ramped up our efforts to reach out to participants and winners to see if there’s potential for collaboration and partnerships.

In addition to that, we’ll be releasing a standalone product that will greatly benefit option tradoooors—a crypto option pricing calculator.

Thanks for reading, and if there’s any way we can help out, please don’t hesitate to drop us or anyone in the team a DM! As always, nothing in this post or follow up discussions should be taken as financial advice or an endorsement of any token/asset.

Cheers,
PsyFi