Friktion
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What are Volts?

Volts are risk-managed return generation strategies!

Quantitative yield strategies to generate returns across market environments. Volts allow anyone to access strategies that are built with principal protection, yield generation, and volatility in mind.

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Live Volts
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These Volts are currently accessible on Friktion! Volts#01 and #02 offer High and Low Voltage options, which represent risk-tiers within the strategy. Read more about Voltage here.
Volt ID
Volt Strategy
Best market environment
Volt#01: Income generation
Selling covered calls. Learn more.
Mild bullish to bearish
Volt#02: Sustainable stables
Selling cash-secured puts. Learn more.
Bullish
Volt#03: Crab Strategy
Monetize volatility yield with a delta-hedged short power-perp position. Learn more.
Flat: Range-bound/sideways market
Volt#04: Basis Yield
Arbitrage spot vs perpetual prices with a delta-neutral basis position.
​Learn more.
Long basis: Negative funding rates Short basis: Positive funding rates

Pricing and Settlement

  • Friktion is powered by a best-price engine which captures the best options, futures, perpetuals, and spot pricing across on-chain exchanges (CLOB, AMM, OMM), off-chain market makers, and between Volts while keeping the protocol risk-neutral, meaning Friktion does not warehouse market risk.
  • Infrastructure utilized:
    • ​Channel RFQ: Solana native Request-for-Quote auction system conducting blind Dutch auctions to connect Friktion Volts to show liquidity on Options and Spot trades. Powered by Serum.
    • Inertia: European-style cash settled options primitive used by Friktion Volts#01 and #02. Put simply, Inertia allows Volt#01 depositors to earn returns (PnL) in underlying asset (ie SOL) and Volt#02 depositors to earn returns (PnL) in USDC.
    • ​Entropy: Power and Volatility perpetuals exchange built using Mango​
    • ​Realms (SPL-Governance): Solana DAO governance tooling
    • ​Tribecca: Open source protocol for launching DAOs
    • ​Jupiter Aggregator: DEX Aggregator for Solana, swap any asset across Solana DEXs

Who uses Volts?

Passive investors and liquidity providers: Automated portfolio management to generate returns across market cycles. Input a portfolio of spot, perps, LP positions, and deploy models to determine how to protect and better grow your assets. Provide liquidity to your favorite yield farms while hedging your Impermanent Loss.
Active traders: Deploy optionality (leverage without liquidations) to trade and earn through products like covered calls, protected puts, iron condors, and straddles on your favorite DeFi assets. Arbitrage mispricings between assets and their volatilities.
DAOs: Identify and manage the risks of your protocol and Treasury, enabling your team to focus on community building. Better incentivize long-term contributors through Custom Liquidity Mining.
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