I would like to recommend an early DeFi project to you - sofa (Chinese name sofa), which is an option structured product based on Ethereum and Arbitrum. It has also recently started ecological cooperation with Merlin. The current TVL of the project is about 30 million US dollars. The main reason for optimism is that I have been paying attention to the DeFi derivatives track. The trading volume of options has increased significantly, and structured products have a certain market.
The recommended logic is as follows:
1. The project’s early DAO members have a luxurious lineup, including large-cap projects such as ARB, LIDO, and LINK, as well as capital such as Ventures and Hashkey.
2. Structured products of options can meet users' financial management + options needs. Currently, this market is still in its early stages and has not been very popular. A good product has the potential to drive up the market value of the entire sector.
3. The sofa project has been online for just over a month and is still in its early stages. Its current market value is close to 30 million US dollars. One RCH in the dual-token model is fairly distributed, with a total of 37 million tokens, making it a typical low FDV project.
4. Participating now can obtain stable financial returns through a low-risk earning model, and at the same time have the opportunity to obtain potential airdrops of sofa tokens in the future, achieving the goal of killing two birds with one stone.
Let's take a look at the products below:
The first one is Earn, which is what I understand as financial management. The logic of the product is to deposit the user's funds into aave to obtain interest income, and then use part of it to purchase option combinations, and return the remaining interest to the user. If the purchased option combination wins, you can get this part of the income, otherwise you can only get the remaining interest.
The second one is Surge, where users directly pay funds to purchase option combinations. If they win, they can get corresponding returns, and if they lose, they will lose their principal.
There are currently three types of corresponding option combinations available:
![](https://public.bnbstatic.com/image/pgc/202407/038ef6a2f6ab5d0ae9bb4c3c4124a923.png)
Rangebound – If the range is not exceeded within the agreed time, the user wins;
Bull Trend——Bull spread, when the price is above the range set by the user at expiration, the user wins;
Bear Trend: Bear spread, when the price is below the range set by the user at expiration, the user wins.
I myself mainly experience Earn, which allows you to get airdrops while managing your finances. I suggest that everyone start with Earn. If you are interested, you can also find me to join the group chat and discuss together.