🚘How it works

Rysk operates through two core components that work together to bring covered calls and cash-secured puts in DeFi.

1. The Protocol: handles collateralization, settlement, and options logic.

2. The RFQ System: executes trades through efficient auctions that determine the premium for each option trade.

1. The Protocol

The options contracts are fully on-chain, utilizing the highly battle-tested and audited Opyn/Rysk Gamma Smart Contracts.

The protocol manages all on-chain logic related to position lifecycle, collateral, and settlement. It defines how covered calls and cash-secured puts are structured, how collateral is held, and how payouts are executed at expiry.

Contract Specifications:

• European-style options

• Collateralization: Each position is fully collateralized and physically settled at the time of trade.

  • For covered calls, the seller deposits the underlying asset (for example, HYPE).

  • For cash-secured puts, the seller deposits stablecoins equal to the strike value.

  Collateral remains locked in the smart contracts until expiry. There is no rehypotetication, liquidations, or external custody. Funds can't be accessed before expiry.

• Settlement: All contracts are physically settled. At expiry, the Stork oracle publishes the reference price for each asset. If the options expires in the money and need to be settled, the collateral is physically exchanged at the strike price

2. The RFQ System

The RFQ (Request for Quote) engine handles trade execution and pricing between users opening covered calls and cash secured puts positions and the counterparties.

When a user selects an asset, strike, and expiry, the RFQ engine requests live bids from integrated makers. Each bid represents the premium that counterparties are willing to pay for the option.

• The best bid is displayed to the user in real time.

• Once confirmed, the trade executes immediately on-chain.

• The user receives the premium upfront in USD.

• Collateral is locked until expiry.

This model ensures efficient and competitive pricing, instant execution and scalability.

Become a Counterparty

The RFQ system is open to to anyone interested in bidding to buy options. If you are interested in integrating, please reach out to the telegram group (https://t.me/+CNo-FQXse-xhMDA0) for technical documentation and integration support.