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SPYdw is a hedged SPY portfolio. This page follows a deposit from the next epoch through to redemption.
Yield pays for the hedge. The underlying collateral of SPYdw generates yield. That yield buys the S&P 500 options, and the collateral stays in place as the floor.

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Step by step

1

Deposit

Deposit USDC. Deposits are processed at the next epoch. Epochs run up to 7 days.
2

Collateral

Your deposit becomes part of the collateral backing SPYdw, across its SPY exposure, its yield, and its hedge.
3

The hedge

The collateral’s yield buys S&P 500 call options on a regular ladder, held through TradFi prime brokers, to manage SPYdw’s exposure to SPY.
4

One token

A single SPYdw token represents the whole portfolio.
5

Redeem

Redemptions are processed at the next epoch. Redeeming before the end of an epoch incurs an early-exit fee.
Hedged, not guaranteed. Its value can fall, including below the amount deposited. The floor is the value of the collateral, not a guaranteed minimum. See Risks.

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The floor

The floor is the value of the collateral that stays in place while the options run.

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The option ladder

Options bought on a regular schedule with staggered 12-month expiries. Cadence goes from quarterly to monthly.

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Epochs and early exits

An epoch is the window in which deposits and redemptions are processed, up to 7 days. The early-exit fee is a fee on redemptions made before the end of an epoch.