How Hypercall Earn Is Different
No oracle
The settlement model does not ask an oracle to determine whether a call is in or out of the money. Instead, a buyer receipt holder can pay the fixed strike for the fixed collateral during the final exercise window.
That window begins at expiry and ends 15 minutes later. If the buyer does not exercise, the writer receipt holder can recover collateral at or after the deadline.
The 15 minutes are buyer exercise optionality, not a price-check grace period.
The design is informed by Vitalik's insight that real-time oracles are hard to make safe. We wrote about Vitalik's full concept here.
Price-settled options
A familiar model
- A price source determines the outcome
- Cash can settle the difference
- Dividend economics stay outside delivery
Earn model
The alternative
- No oracle decides the outcome
- Fixed strike exchanges for fixed collateral
- Physical delivery can carry dividend exposure
Asian in exercise, European in delivery
Earn has a different option shape: Asian in exercise and physically settled European in delivery. A short window after expiry gives the buyer receipt holder the ability to choose whether to exercise. The delivery itself remains fixed: fixed strike for fixed collateral.
This is not a conventional average-price Asian option. The Asian element is the exercise choice over a defined lookback window, while delivery remains European and fixed.
Physical delivery and dividend exposure
Unlike a cash-settled European option, Earn delivers the wrapped xStock collateral. That means the maker can receive exposure to the collateral's dividend economics through physical delivery.
Isolated by position
Each covered call has its own collateral and receipt pair. It is not a pooled vault or a shared yield strategy.
Isolation makes each position's strike, expiry, collateral, premium, exercise right, and writer claim explicit. It does not guarantee liquidity, a cancellation path, or a risk-free outcome.
Rewards are separate from premium
Campaign rewards are independent from the premium paid by the market maker. Premium is the consideration in a firm quote. Rewards are a variable campaign allocation with separate eligibility, accounting, and claim rules.
Read Rewards and visit Quotrons before treating any campaign estimate as yield.