Introduction

Main Street revolutionizes yield generation on-chain by harnessing delta-neutral options box spread strategies and democratizing access through a Multi-token system.

Evolution of Delta-Neutral Dollars

Delta-neutral trading has traditionally been reserved for institutional investors with sophisticated infrastructure to balance positions across spot and derivatives markets. These strategies capture market upside while hedging downside risk.

In March 2023, Arthur Hayes outlined a vision for creating synthetic dollars using crypto collateral and derivatives in his "Dust on Crust" publication. This concept was first successfully implemented at scale by Ethena, which pioneered the basis trade approach to create a yield-bearing synthetic dollar.

Main St's Options-First Approach

Main Street builds upon this foundation with a different strategy focus. While Ethena specializes in the basis trade (cash and carry), Main Street pioneers the options box spread as our primary yield engine. This approach is a combination of two vertical spreads—a bull call spread and a bear put spread—that creates a synthetic position mimicking a risk-free asset, like a Treasury bill, providing a complementary alternative in the delta-neutral yield ecosystem.

Our infrastructure layer for options box spread strategies aims to scale to $500M-$1B with 10-20% APY, establishing Main Street as the "savings account for crypto natives."

Main St's Multi Token System: Yield Made Simple

Main Street democratizes the options box spread through our novel multi token system:

• msUSD: The base token that is always backed 1:1 with USDC

• msY: The first strategy token that accrues yield when users stake their msUSD and is backed by the box spread strategy.

This structure delivers hassle-free earnings through a staking mechanism. Sell anytime, move between chains via LayerZero, and deploy in DeFi applications for additional yields.

While msY maintains a soft dollar peg for convenience, it is not a stablecoin, it is a strategy token. Its redemption value is tied to the strategy vaults coverage ratio and insurance fund, with different risk parameters than msUSD or USDC.