Why yield-bearing stablecoins could be onchain options' distribution layer
Quote154 words
First-wave onchain options (Dopex, Ribbon, Lyra) failed on retail complexity; vaults and stablecoin yield abstract it away. As basis trade yields compress, curators will add options for diversification.
In the latest issue of @machinesmoneyA1, our analyst @exnihil0 breaks down why options might finally be getting their moment onchain.
One thing that clicked for me reading the full piece: yield-bearing stablecoins don't just benefit from options, they might be the distribution layer options always needed.
First wave of onchain options (Dopex, Ribbon, Lyra) struggled because retail didn't know what to do with them. Vaults and stablecoin yield strategies abstract that complexity away entirely.
Users just deposit and earn, curators handle the greek exposure underneath.
And as basis trade yields compress from crowding, vault managers will naturally look to options for diversification. Theta harvesting, vol selling, box spreads, the toolkit is deep and fits the "managed yield" model perfectly.
The Susquehanna and Fasanara examples in the full piece hint at where this goes next.
Worth reading the whole thing.
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