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yield farmingIntermediate

Covered Call Vaults

Earn premium income by depositing assets into decentralized options vault strategies.

Typical APY Range15% - 40%

What Are Covered Call Vaults?

Covered call vaults (DOVs) let you earn premium income by selling call options on crypto holdings. Vaults automate the process: deposit assets, vault sells weekly options, collect premiums. Yields range 15-40% APY.

Popular protocols include Ribbon Finance and Dopex. Vaults sell out-of-the-money calls weekly. If price stays below strike, keep full premium. If exceeded, assets may be called away.

Best during sideways or mildly bullish markets. Not ideal for strong bull markets. You may lose assets if exercised.

Access DOVs with Fensory.

How to Get Started

  1. 1Choose vault
  2. 2Deposit assets
  3. 3Vault sells options
  4. 4Collect premium
  5. 5Reinvest or withdraw
  6. 6Monitor strike

Pros

  • ✓Passive income
  • ✓Automated
  • ✓Works in sideways markets
  • ✓No management

Cons

  • ✗Capped upside
  • ✗Assets may be called
  • ✗Underperforms bulls
  • ✗Smart contract risk

Find protocols offering yield-farming strategy with live rates.

Track live yields, compare protocols, and build your DeFi portfolio with Fensory.

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