Dirac Finance
  • Introduction
  • Vision
  • Problem We Are Solving
  • What is Dirac Finance
  • Personas
    • Vault Depositors
    • Vault Strategists
    • Vault as a Service for Partners
  • Finding the Vaults
    • Entering the Dirac Finance dApp
    • Connecting Your Wallet
    • Landing on the Vaults page
  • Product offerings
  • Security matters
  • Risk Mitigating Algorithms
    • Dirac Decision Making Algorithm (DDMA)
    • Dirac Global Hedging Algorithm (DGHA)
  • The Pricing Issue
  • Tokenomics
    • Token Allocation
    • Staking Mechanism
  • Dirac NFTs
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  1. Personas

Vault Depositors

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Last updated 1 month ago

Who are Vault Depositors? Vault Depositirs as LPs (Liquidity Providers) play a key role in DeFi. They provide the liquidity which is used as collateral in a plethora of different protocols utilizing smart contracts, eliminating the need for a trusted third party, and making DeFi a more transparent, inclusive, and efficient way of interacting with money.

A Dirac Finance Vault Depositor is an individual user, dApp, DAO, or any entity that provides liquidity to one of our vaults, by connecting their wallet to our dApp.

Vault Depositors's goal is to generate returns from our vaults.

At Dirac Finance, Vault Depositors will be depositing HONEY (Berachain's official stablecoin) to collateralize options via Berachains Options dApps, such as , or . This generates yield, primarily through premiums, plus additional rewards like partner tokens, $BERA, and potentially BGT (Berachain Governance Token).

Vault Depositors' Journey:

Each time an option is sold, Vault Depositors collateralize it and receive part of the premium pro rata to their liquidity share. The collateral is locked in a dedicated smart contract until the option expires.

At maturity:

  • If the option expires out-of-the-money, the collateral is unlocked and used to collateralize new options to generate additional yield for Vault Depositors.

  • If the option expires in-the-money (meaning for a put that the price of the underlying - WBERA, WETH or WBTC - is below the strike price), part of the collateral is sent to the option buyer.

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