Structured Products Overview
Building complex financial products with Matador.
Structured Products Overview
Structured products are pre-packaged investments that typically include assets linked to interest plus one or more derivatives.
Why Matador?
Building structured products as custom smart contracts is expensive and risky. Every new product requires a new contract and a new audit.
With Matador, you can build a Generic Vault contract and define the product logic entirely in the Policy.
Product Archetypes
1. Principal Protected Notes (PPN)
- Logic: Invest 90% in yield-bearing stablecoins (to guarantee principal). Invest 10% in high-risk options (for upside).
- Policy: Enforce the 90/10 split. Prevent unlocking the stablecoin portion before maturity.
2. DeFi Option Vaults (DOVs)
- Logic: Sell covered calls weekly to generate yield.
- Policy: Enforce strike selection rules (delta < 0.3) and roll schedules (every Friday).
3. Tranche Products
- Logic: Senior tranche gets first claim on yield; Junior tranche takes first loss.
- Policy: Enforce the "waterfall" distribution logic during settlement.
Lifecycle Management
Structured products have a distinct lifecycle that policies can enforce.
Subscription Period: Allow deposits, block withdrawals.
Active Period: Block deposits/withdrawals, allow trading/hedging.
Maturity/Settlement: Allow withdrawals, block trading.
One vault, many products
The policy defines the product. Update the policy and the same vault can serve a new mandate without redeploying contracts.
import "abis/SummerstoneVault.json" as Vault;
permission LifecycleGuard -> 1.0.0 {
parameters: {
vault: Vault,
activePhase: uint256
}
when: {
parameters.vault.phase() == parameters.activePhase
}
}