COVERED CALLS · CASH-SECURED PUTS

Write the option. Collect the premium.

Deposit an ERC-20, receive shares 1:1. Market makers pay premium on-chain in whitelisted stablecoins; exercise is escrowed by the MM and approved by the Ivy multisig. No oracle, no on-chain strike — and no pretending otherwise.

TWO CONTRACTS · ~300 LINES · EVERY POWER DOCUMENTED BLUNTLY

READ THE DOCS → SECURITY & TRUST →
01
deposit() LP / DEPOSITOR

Asset in, shares credited 1:1 with the balance delta.

02
depositPremium() MARKET MAKER

Premium in a whitelisted stable, credited pro-rata.

03
proposeExercise() MARKET MAKER

MM escrows the exercise payment and names the amount it buys.

04
approveExercise() IVY MULTISIG

Payment to depositors pro-rata, underlying to the MM. Or reject — escrow refunded.

05
fulfillWithdraw() IVY MULTISIG

Principal returns, sized against what is genuinely idle.

FIG. 01 — ONE FULL CYCLE EST. MMXXVI
CONTRACTS 2 LINES ~300 ORACLES 0 ON-CHAIN STRIKES 0 UPGRADEABILITY NONE PREMIUM WHITELISTED STABLES SETTLEMENT MANUAL
FIG. 02 — THE MECHANISM

Premium flows on-chain. Settlement takes two signatures.

Nothing about strike, expiry or spot lives on-chain. The MM's escrowed terms are the price, and the multisig's approval is the price check.

i. DEPOSITOR

Deposit, get shares 1:1

An LP (covered call) or a crowd (cash-secured put) puts an ERC-20 in. Shares match the amount actually received; the first deposit pins the asset permanently. Shares are an internal accounting entry, not an ERC-20 and not transferable — deliberately, since each depositor's row carries its own premium baseline and intent.

ii. MARKET MAKER

Premium lands on-chain

Anyone can pay premium in a whitelisted stablecoin. A MasterChef accumulator credits it pro-rata; depositors pull it with claim() any time.

iii. MM + MULTISIG

Exercise escrowed, then approved

In the money? The MM escrows real payment and names the underlying it buys. The multisig approves — or rejects and the escrow refunds. Two parties, always.

iv. MULTISIG

Principal only exits to depositors

fulfillWithdraw debits shares and returns asset to the depositor, sized against what is genuinely idle. There is no other exit for principal.

FIG. 03 — TWO INSTRUMENTS

One flag, two products.

I. multiDeposit = false

Covered call

A single curated LP deposits the underlying. MMs buy upside against it; the LP keeps the premium either way.

One depositor — the vault locks to the first LP
Premium accrues to the LP in whitelisted stables
Exercise sells the underlying at the MM's escrowed terms
II. multiDeposit = true

Cash-secured put

A crowd of depositors posts stablecoin collateral. If the put lands in the money, the vault buys the underlying at the strike.

Open to many depositors, shares credited 1:1
Premium split pro-rata via a MasterChef accumulator
Each depositor's cycle is independent — per-user shares and withdrawals
FIG. 04 — TRUST MODEL

Stated bluntly, because that is the design.

The Ivy multisig is fully trusted. LPs are curated and settlement is manual — disclosed in the README, the docs, and here. What the multisig can do alone is small and bounded by construction.

FULL DISCLOSURE →
i.

The multisig is fully trusted — by design

Manual settlement, curated LPs, no oracle. Disclosed everywhere, not hidden behind decentralization theater.

ii.

Alone, it can only send money to depositors or back to an MM

Its unilateral powers are exactly fulfillWithdraw (asset → a depositor, debiting shares) and rejectExercise (escrow → its proposer).

iii.

Extracting the underlying takes two parties

Asset reaches a non-depositor only via proposeExercise (MM signs, escrows real payment) then approveExercise (multisig signs). A compromised Safe key cannot move underlying on its own.

iv.

One bounded path pays the multisig: skim

It sweeps only balance above principal + owed premium + live escrows — rebases, strays, dust. It can never reach depositor money.

v.

Known and accepted: blacklistable tokens

A token that can freeze this address (USDT-style) bricks any vault holding it. A more trustless 2-of-3 design is sketched as v2 and out of scope.