Introduction

Main St revolutionizes yield generation on Sonic by harnessing delta-neutral options arbitrage strategies through a sophisticated dual-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 St builds upon this foundation with a different strategy focus. While Ethena specializes in the basis trade (cash and carry), Main St pioneers options arbitrage as our primary yield engine. This approach captures inefficiencies between implied and realized volatility in options markets, providing a complementary alternative in the delta-neutral ecosystem.

Our infrastructure layer for options volatility strategies aims to scale to $500M-$1B with 30%+ APY, establishing Main St as the "savings account for crypto natives."

Market Timing Advantage

The crypto ecosystem is experiencing what many are calling "DeFi Spring" — a renaissance period with unprecedented innovation across DeFi primitives. Simultaneously, options markets have grown substantially, with Bitcoin options open interest approaching $35 billion — creating an ideal environment for sophisticated options strategies that were previously inaccessible to most participants.

This environment creates an ideal window for our token ecosystem:

• Capturing significant yield from options market inefficiencies

• Establishing early market leadership in options-based yield strategies

• Leveraging our quantitative team's sophisticated prediction models

• Participating in the growth of one of crypto's largest but underutilized markets

• Benefiting from renewed DeFi enthusiasm focused on sustainable yield generation

Main St's Dual-Token System: Yield Made Simple

Main St democratizes institutional-grade options strategies through our dual-token system:

• msUSD: The base token that maintains a soft dollar peg

• smsUSD: The staking token that accrues yield when users stake their msUSD

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 msUSD maintains a soft dollar peg for convenience, it is not a stablecoin. Its redemption value is tied to the protocol's coverage ratio and insurance fund, with different risk parameters than USDC or USDT.