The Premian Take #2

6 min readFeb 10, 2023

Welcome to the second edition of The Premian Take newsletter!

Premia news, updates, stats and announcements are aggregated into a single bi-weekly newsletter — a one-stop shop for keeping our community up-to-date on Premia and the state of the DeFi options!

February has kicked off great for Premia, as Knox Vaults have now successfully undergone multiple epochs. Notably, options for both the call and put vaults expired out-of-the-money, earning sustainable yield for depositors. Keep reading for APY details!

Moreover, we’re now in second gear with our content efforts — not only have we launched The Premian Take, but we’ve also published the first two editions of our Governance Series alongside the Theta Log video updates — giving the community multiple reference points on our progress.

In case you’ve missed it, we are also working on revamped educational content. Premia Academy is being built for users of any level to learn about DeFi options, while potentially earning something in the process…

Without further ado, let’s take a look back at the last two weeks. Here’s everything you might’ve missed regarding Premia and DeFi options.

Bitcoin has had its best January since 2013 with a gain of 40%. The markets have been heating up in response to it, causing growth in multiple sectors. However, markets are displaying exhaustion, retraces, and volatility — make sure to manage risk accordingly.

Besides the second wave price action across the board, Arbitrum has been leading the L2 charge. Multiple native DeFi tokens are seeing rapid growth, with Arbitrum’s TVL and developer activity on a high rise.

Alongside Premia and Knox Vaults, DeFi protocols have been emerging with different structured products. From options vaults to new GLP-based strategies, DeFi as a collective keeps displaying the potential of composability and collaboration, swiftly branching into various avenues.

Narrative-wise, some AI tokens have been gaining traction following ChatGPT’s widespread usage. NFT marketplaces are another sector speeding up as we approach the $BLUR airdrop on Feb 14th. Piggybacking off of NFTs, GameFi is also whispering behind the scenes…

As a cool tidbit, Ethereum has reached its most deflationary status ever! Since The Merge last September, ETH supply has been reduced by over 13,000, exceeding $21,000,000 in value at current prices. This is in comparison to the 1,700,000+ ETH that would’ve been issued as PoW rewards.

Here’s everything you might’ve missed regarding Premia and DeFi options over the past few weeks:

Here are the details for some of the highlights:

Benefits of Strategy Vaults

Premia has reached an important milestone with the launch of Knox Vaults.

Vaults are a great alternative to liquidity pools for market makers and users who want to put their crypto assets to work. In this article we dive a bit deeper into the unique properties of vaults, and why they are the clear next step for Premia as we move towards v3.

Here are some of the key things we cover in the article:

Differences between providing liquidity and using strategy vaults
How Knox Vaults improve upon covered calls as a strategy
What vaults unlock for Premia on a longer timeframe

Theta Logs 02/01/2023

Theta Logs are Premia’s way of documenting development progress and keeping our community in the loop via an easily digestible video format.

In the latest issue, you can find updates and information on:

Premia v3 base layer
$PREMIA emissions proposal
The Community Council
Premia Academy
Weekly statistics

It’s filled to the brim with Premia alpha. Watch it on our YouTube channel here.

Governance Series: Components of a Resilient DAO

Premia stands for decentralization. With the updated tokenomics and governance model, we wanted to go deeper into various topics surrounding decentralized governance and DAOs.

In Components of a Resilient DAO, we discuss what makes DAOs the preferable alternative to traditional, centralized governance. Additionally, we cover different voting mechanisms along with the components that make up a resilient DAO.

This is the second issue of Premia’s Governance Series, where we tackle different obstacles facing decentralized governance, with the goal of providing sustenance to continued innovation in the field.

Statistics

Knox Vaults have undergone a few successful epochs now, earning sustainable, and more importantly predictable, yield for depositors. Going forward, we’ll include the Knox Vaults’ performance in each issue of The Premian Take.

Notably, Knox Vaults have successfully sold out on options in the last two epochs! This means that 100% of the vault deposits were utilized, earning the maximum amount of yield for depositors.

Most of Premia’s TVL and platform volume continue to be posted on Arbitrum.

Let’s take a look at Premia’s statistics over the last few weeks:

Current TVL: $12.4M, down 4.6% from Jan 27th
Jan 29th — Feb 5th Volume: $4.16M
Knox Call Vault APY: 16.5%
Knox Put Vault APY: 12.5%

Note that these yields are projected based on vault performance over the last few epochs, and are subject to change according to market conditions.

Community Spotlight

Our community is the force driving Premia forward. To showcase our gratitude, we include community spotlights in each edition of The Premian Take!

Huge props to @ryskygeronimo for an amazing thread summarizing the Premia v3’s unique mechanism designs!

Cheers to @coinbustersIO for a great article introducing and analyzing Premia’s options platform!

@DefiIgnas highlighting Premia’s flexibility among other DeFi options platforms!

@lucidarque printing some juicy returns on Premia’s pools 👀

If you feel like you’re missing out, Premia pools are here.

Tag @premiafinance on Twitter or post memes in our Discord to be included in the Community Spotlight!

Afterword

As the markets are becoming choppier by the minute, we are hard at work behind the scenes. From Premia v3 to Academy, expect to see great things from us in 2023!

Make sure to follow our Medium account & subscribe to email notifications to stay up to date with all things Premia and DeFi options with The Premian Take!