These are not edge cases. They represent a real and growing demand for structured derivatives infrastructure that works on-chain — with non-custodial settlement, full audit transparency, and no dependence on a single intermediary. That is exactly what Enzyme Myso was built to provide.
Enzyme Finance acquired a majority stake in MYSO Finance in September 2024 and has since integrated it as a core product within the broader platform. The result is a fully on-chain options protocol — covering covered calls and cash-secured puts — that is now trusted by institutions including Wintermute, Compound DAO, Telos, and Evmos DAO. Within its first three active months, Myso surpassed $40 million in notional volume and distributed over $1.5 million in option premiums, representing 8x growth. Those are not pilot numbers.
What Enzyme Myso Actually Does
Enzyme Myso is a protocol for creating, trading, and settling bespoke on-chain options. The two core instruments are covered calls and cash-secured puts — the two most common yield-generating options strategies in traditional portfolio management — brought fully on-chain with configurable parameters, non-custodial settlement, and institutional-grade execution mechanics.
A covered call allows a holder of an asset to sell the right to purchase that asset at a specified strike price before a specified expiry. The seller receives an upfront premium and retains the underlying asset unless the option is exercised. For treasury managers sitting on large token positions, this is a mechanism to generate immediate yield while retaining ownership of the underlying — the asset is locked in escrow for the duration of the option and returned if the strike is not reached.
A cash-secured put allows the writer to commit to purchasing an asset at a specified price on or before expiry, receiving a premium in exchange. This is typically used for gradual accumulation strategies — a portfolio manager who wants to acquire an asset at a target price collects premium income while waiting for the price to reach their entry point. If the strike is not hit, they keep the premium and repeat.
Both strategies settle entirely on-chain through the Myso marketplace, eliminating the counterparty credit risk, settlement delays, and custodial friction of traditional options execution. The underlying asset is held in a non-custodial escrow contract for the duration of the option — no counterparty holds it, no exchange has custody of it, and the settlement logic executes automatically based on market conditions at expiry.
The Execution Model: Marketplace, Auction, and OTC
One of the more practically important design decisions in Myso is its multi-mode execution architecture. Not all options trades have the same execution requirements, and forcing a single settlement model on diverse counterparty types creates friction.
Automated marketplace settlement is the default path. Option writers set their parameters — strike price, expiry, premium, asset and quantity — and the marketplace automatically matches buyers and settles the transaction on-chain. This suits standardized options where price discovery through the marketplace is sufficient and execution speed matters.
Auction-based pricing allows writers to define minimum acceptable parameters and enable buyers to place competitive bids on their option. This is particularly useful for larger or more customized positions where the writer wants competitive pricing without going to a bilateral negotiation. The auction mechanism connects sellers directly to a broad pool of trading firms, and the writer retains the right to accept or reject bids above their minimum.
Over-the-counter settlement is available for large institutional trades where the counterparty is known and the terms are negotiated bilaterally. In the OTC flow, Enzyme Myso handles the on-chain settlement — the agreed terms are encoded and executed trustlessly — while the price discovery and negotiation happen off the protocol. Wintermute's use of Myso operates within this model, giving institutional market makers access to structured products with on-chain settlement finality.
This three-channel approach gives Enzyme Finance Myso a flexibility that single-mode options protocols cannot match. Retail DeFi participants can use the automated marketplace; DAOs with specific treasury requirements can structure bespoke auctions; institutional desks can negotiate OTC and rely on Myso for settlement.
DAO Treasury Management: The Compound DAO Case
The Compound DAO partnership is one of the clearest illustrations of what on-chain options infrastructure can do for decentralized treasury management.
DAOs have historically faced a structural capital efficiency problem. Governance treasuries often hold large balances — COMP tokens, stablecoins, protocol revenue — with no yield-generating mechanism. Holding idle assets while protocol expenses accumulate is a form of slow capital destruction. The options available in traditional treasury management — structured yield products, T-bill ladders, covered call programs — have been largely inaccessible to on-chain treasuries because the infrastructure to execute them natively did not exist.
Compound DAO used Enzyme Myso to deploy a recurring covered call strategy targeting approximately 15% APY on treasury assets. The structure allows the DAO to sell covered calls on token positions, receive premium income that flows directly to the treasury vault, and retain the underlying assets if the strike price is not reached by expiry. The options vault runs recurring cycles — each settlement is automatically auditable and visible to the DAO community in real time. Governance can observe every option written, every premium collected, and every settlement outcome without requesting a report.
The Telos blockchain ran a similar strategy. Using Myso, Telos structured covered calls on approximately 300,000 wTLOS (the wrapped version of its native token), generating immediate premium income while locking the underlying in non-custodial escrow. The strategy generated yield on assets that would otherwise sit idle in the treasury, without requiring Telos to sell or transfer underlying ownership.
The Evmos DAO integration followed the same structural logic. For DAOs with governance tokens that represent significant notional value but generate no treasury yield, Myso provides a mechanism to extract income from that position without liquidating it — a meaningful shift in how decentralized organizations can approach capital management.
Institutional Use: Wintermute and Cross-Firm Liquidity
Enzyme Finance Myso is not a DAO-only product. Its cross-firm liquidity model and OTC settlement capability make it relevant for institutional trading desks that want access to a neutral, non-custodial options settlement layer.
Wintermute, one of the largest algorithmic market-making firms in digital assets, has used Myso in production. For a market maker of Wintermute's scale, the value of a neutral protocol with atomic on-chain settlement is the elimination of bilateral credit exposure. In traditional options markets, counterparties take on credit risk to each other for the duration of an options position. On-chain settlement through Myso eliminates this: the position is enforced and settled by smart contract logic, not by a counterparty's willingness or ability to perform.
The cross-firm liquidity aspect of Myso is also significant. Rather than requiring options sellers to onboard multiple trading desks — each with its own documentation requirements, credit approval process, and operational overhead — Myso provides access to multiple trading firms through a single protocol interface. For institutional issuers and fund managers who want competitive pricing on options execution without the bilateral relationship overhead, this is a structural efficiency gain.
Integration with Enzyme Blue and Onyx Vaults
One of Myso's most operationally useful characteristics is its native integration within the Enzyme Blue and Onyx vault environments. Portfolio managers running strategies in Blue vaults can write covered calls on positions held within the vault — with the premium income flowing directly to vault investors — without removing the underlying from the vault's strategy.
This embedded integration matters because it keeps the full strategy lifecycle within a single, auditable vehicle. A Blue vault running a mixed yield strategy can simultaneously lend assets on Aave, provide liquidity on Curve, and write covered calls on a BTC position — all within the same vault, with a single NAV calculation, a single fee structure, and a single investor-facing performance record. The complexity of managing multiple positions across multiple protocols is abstracted by the vault layer, and the audit trail for every action remains complete and on-chain.
For Onyx-based institutional funds, the same integration enables treasury and capital vaults to run options strategies directly from the institutional wallet infrastructure. A fund manager can write options from an Enzyme Onyx vault built on top of a Safe wallet, using Zodiac for role-based delegation — meaning a designated options desk can execute the options strategy within governance-encoded permissions without holding custody of the underlying fund assets.
Canton Deployment: Institutional Options with Privacy Guarantees
As part of Enzyme Finance's expansion to Canton Network, Myso is being ported natively to the Canton institutional blockchain. This is a significant development for institutional options use cases where portfolio confidentiality is a requirement.
On Canton, institutions and sophisticated counterparties will be able to construct, issue, and settle covered calls and cash-secured puts entirely within the Canton environment, with the privacy guarantees and atomic settlement finality that the network provides. Portfolio data, strike prices, notional sizes, and counterparty identities are visible only to the appropriate parties — not to the broader public blockchain. Settlement occurs in real time with finality.
For regulated derivatives users — trading desks at regulated funds, treasury managers at listed entities, institutional prime brokers — the ability to access on-chain options settlement with full privacy preservation removes one of the principal barriers to adoption. The combination of non-custodial settlement and institutional-grade confidentiality is, for many regulated actors, what makes on-chain derivatives infrastructure viable for the first time.
Key Advantages of Enzyme Myso
Non-custodial, on-chain settlement. No counterparty holds the underlying. The escrow contract is governed by smart contract logic that executes automatically based on market conditions at expiry. Counterparty credit risk is eliminated by design.
Three execution channels. Automated marketplace for standardized trades, auction mechanics for competitive pricing on bespoke positions, and OTC settlement for bilateral institutional trades. Each channel serves a different counterparty profile without forcing everyone into the same model.
Cross-firm liquidity access. A single Myso integration connects option sellers to multiple trading firms without bilateral onboarding for each. Competitive pricing, reduced operational overhead.
Native vault integration. Covered calls and cash-secured puts can be written directly from Enzyme Blue and Onyx vaults, keeping the full strategy within a single auditable vehicle with one NAV, one fee structure, and one investor record.
Fully configurable parameters. Strike prices, expiry dates, premium structures, auction mechanics, and underlying asset selection are all configurable. Basic and Pro parameter modes accommodate both straightforward treasury yield strategies and sophisticated institutional derivatives structures.
Canton-native deployment. Institutional options with privacy-preserving architecture for regulated markets, with atomic settlement finality.
Proven track record. $40 million-plus in notional volume and $1.5 million-plus in premiums distributed within three months of launch. Institutional users including Wintermute, Compound DAO, Telos, and Evmos DAO operating in production.
Risks Worth Understanding
Options strategies involve meaningful risk alongside the yield opportunity. Covered call writers cap their upside on the underlying asset — if the token appreciates significantly above the strike price, the option is exercised and the writer sells at the lower strike, missing the additional gain. For treasury managers who have strong conviction in the long-term value of their holdings, this opportunity cost deserves careful consideration in strategy sizing.
Smart contract risk applies to Myso as to any on-chain protocol. The escrow mechanics, settlement logic, and marketplace contracts have been audited, but no audit eliminates execution risk entirely. The full Myso audit history is publicly available through the Enzyme documentation.
Liquidity in the Myso marketplace varies by asset and expiry. For less liquid token positions, achieving competitive pricing through the automated marketplace may require using the auction or OTC channels rather than expecting immediate market-rate execution.
Finally, the regulatory treatment of on-chain options varies by jurisdiction. Institutional users should review the applicable framework for derivatives in their operating jurisdiction before deploying options strategies through Myso at scale.
The Forward View
The options strategy use case for on-chain treasuries is still in early adoption. Compound DAO and Telos demonstrate that the model works — recurring yield generation on idle treasury assets, fully auditable, fully on-chain — but the majority of DAO treasuries and institutional digital asset portfolios have not yet deployed structured yield strategies of this kind. As the infrastructure matures and the track record of Myso grows, the addressable market expands significantly.
The Canton deployment extends Myso's reach into the institutional market that has the deepest unmet demand for on-chain derivatives with privacy guarantees. Regulated trading desks and fund managers who cannot operate on public chains will find in Canton-native Myso exactly the settlement infrastructure they have been waiting for.
Get Started with Enzyme Finance Myso
Whether you manage a DAO treasury, run an institutional trading desk, or operate a portfolio manager vault on Enzyme Blue, Myso's options infrastructure is live and accessible. The Enzyme team offers direct consultation for institutions looking to integrate covered call or cash-secured put strategies into existing treasury or portfolio structures.
Frequently Asked Questions
What is Enzyme Finance Myso and how does it work?Enzyme Myso is an on-chain options protocol integrated within the Enzyme Finance platform. It enables the creation, trading, and settlement of covered calls and cash-secured puts entirely on-chain. Option writers lock the underlying asset in a non-custodial escrow contract, receive upfront premium income, and the option settles automatically based on market conditions at expiry. Settlement is non-custodial — no counterparty holds the underlying at any point.
What types of options does Enzyme Myso support?Myso currently supports covered calls and cash-secured puts across a broad ERC-20 asset universe with customizable strike prices and expiry dates. Both Basic and Pro parameter modes are available for configuring option terms, and settlement can occur through the automated marketplace, auction bidding, or over-the-counter arrangements.
How does Enzyme Myso eliminate counterparty risk?The underlying asset is held in a smart contract escrow for the duration of the option. No counterparty holds the asset in custody. Settlement executes automatically based on the encoded terms — no trust in a counterparty's willingness or ability to perform is required. This is structurally different from traditional options where credit exposure to the counterparty exists for the full life of the position.
Can DAOs use Enzyme Myso for recurring treasury yield strategies?Yes. Myso is designed specifically for this use case. DAOs can create a dedicated options vault on Enzyme Blue, connect it to Myso, and run recurring covered call or cash-secured put strategies on idle treasury assets. All trades, yields, and flows are fully on-chain and auditable by the DAO community in real time. Compound DAO and Telos are live examples of this structure in production.
What is the difference between the Myso marketplace, auction, and OTC channels?The automated marketplace matches buyers and sellers automatically at the writer's specified parameters. The auction channel lets writers set minimum acceptable terms and receive competitive bids from multiple trading firms. The OTC channel is for bilaterally negotiated institutional trades where Myso handles the on-chain settlement after terms are agreed off-protocol. Each channel suits different trade sizes, counterparty types, and pricing requirements.
Is Enzyme Myso integrated with Enzyme Blue vaults?Yes. Myso is natively integrated within Enzyme Blue, allowing vault managers to write covered calls and cash-secured puts on positions held in their vaults without removing assets from the vault's strategy. Premiums flow directly to vault investors. The entire strategy — lending, trading, staking, and options — operates within a single vault with a unified NAV and audit trail.
What is the Canton deployment of Enzyme Myso?As part of Enzyme Finance's expansion to Canton Network, Myso is being deployed as a Canton-native application. This enables institutional and regulated market participants to construct, issue, and settle options entirely within Canton's privacy-preserving environment, where sensitive trade details are visible only to appropriate counterparties and settlement occurs with atomic finality. This addresses the confidentiality requirements of regulated derivatives users who cannot operate on fully public blockchains.