🎟️ $V Options
This page gives a simple overview of how options integrate with The Vault protocol: no math, no jargon, just what you need to know to understand and benefit.
This page explains how options work in The Vault and why The Vault uses them to distribute $V.
What Options Are
Options are financial contracts that give someone the right, but not the obligation, to buy or sell an asset at a specific price, at or before a specific time.
Real-life analogy: think of paying a deposit to reserve a plane ticket at a fixed price. You’re not required to buy it, but if prices rise, you win. That’s an option.
How Options Work in The Vault
The Vault uses vPoints as the right to purchase $V under announced exercise terms. vPoints do not turn into $V automatically and cannot be locked.
The Flow
- Users farm vPoints by engaging with The Vault strategies (e.g. vSOL Multiply).
- Check the eligible points token, points required per $V, strike price and exercise window on the exercise page.
- During an open window, exercise eligible vPoints and pay the strike price to purchase $V.
- Compare the exercise cost, including fees, with the market price before deciding whether to exercise.
- Funds from minting go directly to The Vault treasury, strengthening the protocol (Figure 5.3).
Figure 5.3: How $V options work
Example (Simplified)
- Suppose your eligible vPoints entitle you to purchase 10,000 $V. This is an illustration, not current program terms.
- The actual points required per $V depend on the applicable season; check the exercise page.
- Strike price: 0.0006 vSOL per $V.
- At a market price of 0.0010 vSOL per $V, 10,000 $V has a quoted value of 10 vSOL. Exercising costs 6 vSOL at the example strike, a 4 vSOL difference before fees and any price changes. This is not a realized profit unless you sell.
If the market price is lower than 0.0006? You simply don’t use the option. That’s the beauty: it’s optional.
Why Options Instead of Airdrops
- Reduces sell pressure: options are only exercised when market conditions are favorable, minimizing the risk of instant token sell pressure.
- Aligns incentives: only engaged users who actively participate earn options and benefit from them.
- Builds protocol reserves: payments made when exercising options go directly to The Vault treasury, funding future growth and resilience.
- Encourages long-term value: the mechanism rewards commitment over speculation, fostering a healthier token economy.
What’s Next
The exercise page shows availability and the terms for eligible vPoints. Season dates, strike prices and points-to-$V ratios can differ.
Read Introduction to options for the mechanics and Locking $V for what you can do with purchased $V.
Questions
Open a support ticket in The Vault Discord if you need help with vPoints or exercising. Follow the official support process.