Crypto Gloss

Typus Finance

Typus Finance is Sui’s primary structured products and options vault protocol — running decentralized options vaults (DOVs) on Sui Network where users deposit assets to earn yield from weekly automated options selling strategies (covered calls, cash-secured puts), with Cetus and DeepBook providing on-chain settlement infrastructure and TUS as the governance token.

Overview

Typus Finance brings the decentralized options vault (DOV) model — pioneered by Ribbon Finance on Ethereum and replicated by Adrena on Solana — to Sui Network. The core mechanic: users deposit assets into structured vaults, which automatically sell options every week and collect premium income. The protocol handles the full lifecycle: vault deposit, option parameter selection (strike price, expiry), on-chain option creation/settlement, and premium distribution to vault depositors. Typus is Sui’s bridge between simple AMM/lending DeFi and structured derivatives products.

Core Product: Decentralized Options Vaults (DOVs)

The main product offerings are described below.

Covered Call Vaults

Designed for holders who have a neutral-to-moderately-bullish outlook:

  • Deposit: SUI, BTC, ETH into the covered call vault
  • Protocol action: Sells weekly call options at an out-of-the-money (OTM) strike price
  • Premium income: Option buyers pay premium → distributed to vault depositors
  • Payoff if expires OTM (most common): Keep deposit + earn full premium (yield)
  • Payoff if expires ITM: Position is called away at strike — vault sells at strike price, capping upside but premium is still kept

Expected APY source: Pure option premium income. Higher volatility → bigger premium → higher APY.

Cash-Secured Put Vaults

Designed for users who want to buy an asset at a target price while earning yield:

  • Deposit: USDC (or other stablecoins)
  • Protocol action: Sells weekly put options at an OTM strike price (below current market)
  • Premium income: Option buyers pay premium for downside protection → distributed to vault depositors
  • Payoff if expires OTM (most common): Keep USDC + earn full premium
  • Payoff if expires ITM: Protocol buys the underlying at the strike price (depositor now holds the asset)

Expiry and Settlement

  • Options run on a 7-day (weekly) cycle
  • At expiry, Typus settles using Cetus or DeepBook’s on-chain price data for settlement price
  • New options cycle automatically starts after settlement (auto-rolling vault)
  • Depositors can exit at cycle boundaries

Options Infrastructure on Sui

Traditional DeFi options face the challenge of on-chain settlement and price for physically or cash-settled products. Typus leverages:

DeepBook: Sui’s native CLOB as reference price source for settlement

Cetus: CLMM price data as additional oracle input

Pyth Network: External oracle price feeds for dispute resolution or direct integration

Typus creates tokenized option contracts as Sui objects (Move structs) representing the option terms (strike, expiry, underlying, type). These objects are transferable and composable.

Vault Mechanics

  • Deposit window: Brief window before each weekly cycle to enter/exit vaults
  • Auto-compound option: Premiums can be auto-deposited back into the vault
  • Withdrawal timing: Request withdrawal → fulfilled at end of weekly cycle
  • Premium distribution: At settlement, premium collected distributed pro-rata to depositors
  • Settlement in underlying: For covered calls, settlement in the vault’s underlying asset

TUS Token

TUS is Typus Finance’s governance token:

  • Governance — TUS holders vote on new vault additions, strike selection parameters, fee rates, treasury management
  • Fee sharing — Protocol earns a performance fee on vault profits; portion goes to TUS stakers
  • Liquidity mining — TUS emissions reward early vault depositors
  • Ecosystem token — TUS used for priority access to vault strategies, boosted APY tiers

Comparison to Ribbon Finance (Ethereum)

Feature Ribbon Finance (Ethereum) Typus Finance (Sui)
Chain Ethereum Sui
Settlement Gnosis Auction → Paradigm/OTC DeepBook / Cetus on-chain
Options type European cash-settled Sui Move object options
Token RBN TUS
Innovation Pioneered DOV model Adapted DOV for Sui ecosystem

Ribbon Finance later evolved into Aevo (exchange), while Typus maintains focus on the vault/DOV model on Sui.

Sources

Related Terms