SPYdw: a hedged SPY portfolio

SPYdw is a hedged SPY portfolio, live on Ethereum. This page sets out its key terms, and How it works follows a deposit through each step.

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.

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.

Key terms

Term	Definition
Collateral	The assets backing SPYdw, across its SPY exposure, its yield, and its hedge.
The hedge	The S&P 500 call options SPYdw holds to manage its exposure to SPY.
The floor	The value of the collateral that stays in place while the options run.
Option ladder	Options bought on a regular schedule with staggered 12-month expiries. Cadence goes from quarterly to monthly.
Epoch	The window in which deposits and redemptions are processed. Up to 7 days.
Early-exit fee	A fee on redemptions made before the end of an epoch.

Item	Detail
Network	Ethereum
Deposit asset	USDC
SPYdw token	`0x88e570F58881d8b200CA58B5a050fb5C9BAC8deb`
Options held through	TradFi prime brokers
Proof of reserves	Published live by Drakewell `[TBC: URL]`

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How it works

The steps from deposit to redemption.

Risks

How SPYdw can lose value.

Proof of reserves

Live reserve data published by Drakewell.

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SPYdw

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SPYdw: a hedged SPY portfolio

Key terms

Learn more

How it works

Risks

Proof of reserves

​Key terms

​Learn more

How it works

Risks

Proof of reserves

Key terms

Learn more