On November 7, 2026, Péter Szilágyi, founding father of dark_dot_bio and lead developer of Go Ethereum from 2015 to 2025, posted a rant on X about Ethereum’s issuance debate. The replies changed into a protracted debate, and this information follows one facet dialog from it.
“the explanation everybody stakes ETH is as a result of there isn’t the rest to do with it!”
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AllThingsEVM.eth quote-tweeted him, saying he has about 90% of his internet value in ETH. Later within the thread, he says he needs to do two issues he’d usually do with choices: receives a commission to attend to purchase extra ETH decrease, and receives a commission to promote some if the worth ran up. He couldn’t discover a solution to settle both commerce in ETH onchain.
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Ceazor, a DeFi educator and self-proclaimed Degen, described the setup he makes use of as a substitute: a yield-bearing stablecoin sitting in a spread purchase order. AllThingsEVM.eth agreed it was “an analogous mechanism to cash-secured places”, famous what it was lacking, and stated he nonetheless couldn’t discover a good onchain model of a lined name.
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This information walks by way of that dialog, explains what lined calls and cash-secured places are, and the misconceptions that come up when individuals attempt to copy them in DeFi. It additionally covers how Ceazor’s setup works and why it’s intelligent, and the way the covered-call facet will be constructed the identical means on Carbon DeFi, constructed by Bancor.
Word: See the glossary on the finish for any unfamiliar phrases used on this publication.
What’s an choice?
An choice is a contract that provides its purchaser the fitting, however not the duty, to purchase or promote an asset at a set worth (the strike worth) earlier than or on a set date (the expiry). The client pays the vendor up entrance for that proper. That fee is the premium, and the vendor retains it no matter whether or not or not the client finally ends up buying and selling the asset.
There are two varieties:
A name choice offers the client the fitting to purchase on the strike worth.A put choice offers the client the fitting to promote on the strike worth.
Coated calls and cash-secured places are the 2 methods long-term holders most frequently promote choices. In each, you’re the vendor, so that you gather the premium.
What’s a cash-secured put?
A cash-secured put is a put choice you promote whereas holding sufficient money to purchase the asset on the strike worth when you’ve got to.
Say ETH is at $2,100 and also you’d be completely satisfied to personal extra at $1,800. You promote a put with an $1,800 strike and put aside $1,800 in USDC for every ETH. You gather the premium straight away.
If ETH stays above $1,800 till expiry, you retain the premium and your money. If it falls beneath $1,800, the client can train the choice, and you must purchase the ETH at $1,800 even when the market worth is decrease by then. You continue to maintain the premium, so your efficient price is $1,800 minus the premium you collected.
It’s a means of getting paid whilst you wait to purchase decrease.
What’s a lined name?
A lined name is a name choice you promote on an asset you already personal.
Say you maintain ETH at $2,100 and also you’d be completely satisfied to promote some at $2,600. You promote a name with a $2,600 strike and gather the premium.
If ETH stays beneath $2,600, you retain the ETH and the premium. If it goes above $2,600, your ETH is bought at $2,600, and you retain the premium, however you miss any achieve above that worth.
It’s a means of getting paid whilst you wait to promote increased.
Why are these laborious to do onchain?
Choices exist in crypto, however many of the buying and selling occurs on centralized exchanges, and people contracts often pay out the worth distinction reasonably than delivering the token itself. AllThingsEVM.eth wished one thing else: to maintain all the pieces onchain, in ETH, with the commerce settling within the precise token.
Onchain choices venues are rising however nonetheless a small share of crypto choices buying and selling. Fewer venues imply fewer strike costs and expiry dates to select from, and fewer quantity to commerce towards — the explanation ETH holders search for workarounds, and sadly, the place many of the misconceptions begin.
Widespread misconceptions about copying choices in DeFi
“A purchase order beneath the market is a cash-secured put”
It’s shut, and the thread received this half proper. Each commit your money to purchasing at a cheaper price, and each depart you holding the asset if the worth falls. The distinction is the premium. While you promote a put, somebody pays you up entrance for taking up the danger that the worth may fall. A restrict or vary order pays you nothing for that threat. As AllThingsEVM.eth put it, it doesn’t get “the volatility priced in”: the premium on an choice goes up when the market expects greater worth swings, and an order has no equal.
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“Concentrated liquidity is a lined name”
Concentrated liquidity on a typical AMM does promote ETH as the worth rises by way of your vary, which is why it will get in comparison with a lined name. However the place works in each instructions. If ETH climbs into your vary after which falls again, the pool buys the ETH again, and you find yourself holding extra of the asset that fell. You earn buying and selling charges alongside the best way, not a premium. A lined name that’s exercised stays bought.
Concentrated liquidity on Carbon DeFi works equally to that on a typical AMM, although it is freed from tick constraints, doesn’t depend on pre-existing swimming pools or token pairs, and the buying and selling charges earned are auto-compounding. See ‘New Function: Concentrated Liquidity’ for extra.
“Incomes yield by way of a worth vary means you maintain ETH publicity”
Some yield merchandise allow you to select an ETH worth vary, however they solely use an oracle’s ETH worth to calculate your returns. You by no means maintain or obtain ETH. AllThingsEVM.eth raised this himself: in these merchandise, “ETH” is a reference worth, not the underlying token. If you wish to find yourself proudly owning ETH, or to truly promote the ETH you maintain, the commerce has to settle within the token.
“If my order doesn’t fill, I’ve earned nothing”
That is the misunderstanding the dealer’s setup solves. With money sitting in USDC, an order that by no means fills simply leaves you the place you began. If the money is a yield-bearing token as a substitute, the ready time earns a return. That’s the closest factor to a premium you may construct with an order, and it’s the core of the technique beneath.
The yield-bearing vary order: how the technique works
Ceazor’s suggestion, in his personal phrases, was to “use curiosity bearing steady cash” in a spread restrict order on Carbon DeFi.
Right here’s what every half does:
The money facet: sfrxUSD.
sfrxUSD (Staked Frax USD) is a stablecoin that earns yield. You stake frxUSD, a greenback stablecoin, and get sfrxUSD again. Every sfrxUSD turns into redeemable for somewhat extra frxUSD over time, so its worth rises. As of November 9, 2026, its base yield was 5.30% a yr, in line with DefiLlama.
The order: a purchase vary order.
On Carbon DeFi, a spread order buys progressively throughout a customized worth vary you set.
As the worth strikes down by way of your vary and takers commerce towards it, extra of your finances converts. Quantities which have stuffed don’t reverse if the worth bounces again.
The factor you purchase: wstETH.
Ceazor’s “bonus factors” tip was to purchase wstETH as a substitute of plain ETH. wstETH (wrapped staked ETH) is staked ETH in a type that earns Ethereum staking rewards. Like sfrxUSD, it doesn’t add tokens to your pockets; every wstETH turns into value somewhat extra ETH over time. As of November 9, 2026, the 7-day common staking APR on stETH, the token wstETH wraps, was 2.33%, in line with Lido’s API.
Put collectively, the order works like this:
If ETH by no means falls into your vary, your sfrxUSD stays within the order and retains its yield.If ETH falls into your vary, your sfrxUSD progressively buys wstETH, which then begins incomes staking rewards.If ETH dips into your vary and bounces, no matter already stuffed stays stuffed. You retain the wstETH you got, and the remainder of your sfrxUSD stays within the order.
Why the setup is intelligent
Your capital by no means sits idle. With a cash-secured put, the money backing the commerce typically earns little or nothing whereas it waits. Right here, the money earns its personal yield and the asset you find yourself with earns its personal yield, so that you’re incomes on either side of the commerce, earlier than and after the fill.There’s no expiry to handle. An choice expires, and to maintain the commerce going you must promote a brand new one, typically known as “rolling”. A Carbon DeFi order has no expiry date. It stays onchain till it fills otherwise you edit or shut it.A variety averages your entry. A put has one strike worth. A variety order buys throughout a number of costs, so that you don’t must completely predict the backside.The fill settles in the true token. You find yourself holding wstETH, with no oracle worth concerned.
What it doesn’t give you
The yield is the one premium. No one pays you for agreeing to purchase in a falling market, and the yield doesn’t rise when the market will get extra unstable. The order additionally fills solely when a taker trades towards it, so it may fill partly, later than anticipated, or not at all.
One factor to test if you set your costs
Carbon DeFi orders are priced within the pair’s tokens. In a wstETH/sfrxUSD pair, your vary is in sfrxUSD per wstETH, and neither token is value precisely $1 or 1 ETH.
On 9 November 2026, CoinGecko had ETH at about $2,119 and wstETH at about $2,646, so one wstETH was value about 1.25 ETH. To purchase when ETH is round $1,800, the vary has to sit down close to $2,250 per wstETH, divided by sfrxUSD’s personal worth. Each tokens additionally drift as they earn, so in case your order waits for months, it’s value rechecking the vary and modifying it if wanted.
The lined name facet: what the thread stated was lacking
In his final reply, AllThingsEVM.eth stated the closest factor he might discover to a lined name was concentrated liquidity, which sells ETH on the prime of a spread, or a yield product that tracks ETH by way of a spread utilizing an oracle worth. Because the misconceptions above present, the primary reverses if the worth falls again and the second by no means settles in ETH.
On Carbon DeFi, the lined name facet is identical technique run within the different path.
You place wstETH in a promote vary order above the present worth:
When you wait, the wstETH retains incomes staking rewards.If ETH rallies into your vary, the order progressively sells your wstETH for the token you paired it with, resembling sfrxUSD, which then begins incomes its personal yield.If ETH rallies after which falls again, the quantity that bought stays bought. A variety order works in a single path, which is nearer to how an exercised lined name behaves than a two-way liquidity place.What you promote is the true token. The order holds your wstETH and delivers it to the taker; there’s no oracle within the commerce.
Each side collectively: the onchain “wheel”
Choices merchants typically run the 2 trades in sequence, generally known as the wheel: promote cash-secured places till you’re assigned the asset, then promote lined calls on it till it’s bought, then return to places.
A Carbon DeFi recurring order hyperlinks a purchase vary and a promote vary in a single technique. Tokens purchased on the purchase facet fund the promote order, and the proceeds from the promote facet fund the purchase order once more. The cycle repeats till you cease it, with no bot to run, and you can begin with just one facet funded. With sfrxUSD on the purchase facet and wstETH on the promote facet, each halves of the technique maintain yield-bearing tokens. As one order fills, newly acquired tokens routinely rotate to fund the alternative order. The cycle continues for so long as the token pair is buying and selling inside these parameters, or till the dealer edits their technique.
How you can set it up on Carbon DeFi
Open the app on Ethereum. Go to app.carbondefi.xyz, select Ethereum and join your pockets.Select your most well-liked pair. In Ceazor’s case, he’s steered a method consisting of wstETH and sfrxUSD. Use wstETH reasonably than stETH: stETH is a rebasing token, and Carbon DeFi helps solely normal ERC-20 tokens.Choose the technique. Select a spread order to purchase solely (the put facet) or promote solely (the lined name facet), or a recurring order for each.Set your vary and finances. Convert your goal ETH costs into the pair’s costs first, as described above. On a purchase order you deposit solely sfrxUSD; on a promote order, solely wstETH.Assessment and signal.Modify in case your plan adjustments. You may change costs, ranges, budgets, and technique sorts onchain with out withdrawing.
Your order executes solely at costs throughout the vary you set, with zero slippage, and immunity to MEV sandwich assaults. As of November 2026, makers pay no buying and selling price and no fuel when their orders fill.
Steadily requested questions
Are you able to promote lined calls in DeFi?
There are onchain choices venues the place you may promote calls, however the alternative of strikes and expiries is proscribed. With out an choice, the closest equal is a promote order above the market on the asset you maintain. On Carbon DeFi, a promote vary order sells progressively as the worth rises by way of your vary, and what sells doesn’t reverse if the worth drops. It doesn’t pay a premium.
Is a restrict order the identical as a cash-secured put?
No. Each commit money to purchasing at a cheaper price, however a put pays you a premium for taking that threat, and a restrict order doesn’t. If the money within the order is a yield-bearing stablecoin, it earns that yield whereas it waits, which is the closest equal.
What’s the wheel technique in crypto?
Promoting cash-secured places till you’re assigned the asset, then promoting lined calls on it till it’s bought, and repeating. On Carbon DeFi, a recurring order hyperlinks a purchase vary and a promote vary so both sides funds the opposite, with no premium on both facet.
What’s sfrxUSD?
Staked Frax USD, a yield-bearing stablecoin. Every sfrxUSD is redeemable for a rising quantity of the frxUSD stablecoin, so its worth rises as yield accrues. Its base yield was 5.30% a yr on 9 November 2026, in line with DefiLlama.
What’s the distinction between stETH and wstETH?
Each signify ETH staked by way of Lido. stETH pays staking rewards by growing the steadiness in your pockets every day (rebasing). wstETH wraps stETH so the steadiness stays fastened and every token turns into value extra ETH as a substitute. Carbon DeFi helps wstETH however not stETH, as a result of rebasing tokens aren’t supported.
Does sfrxUSD or wstETH maintain incomes whereas it’s in a Carbon DeFi order?
Sure. Each tokens earn by rising in worth reasonably than by altering your steadiness, so that they earn the identical means in an order as they do in your pockets.
What occurs if ETH by no means reaches my vary?
Nothing fills, and your tokens keep within the order. Carbon DeFi orders haven’t any expiry date, so the order waits till it fills otherwise you edit or shut it, and you’ll withdraw at any time.
Is concentrated liquidity the identical as a lined name?
No. Concentrated liquidity sells as the worth rises by way of your vary however buys again because it falls, and earns charges reasonably than a premium. A lined name that’s exercised stays bought. On Carbon DeFi, a spread order works in a single path solely.
Set your personal vary
Select the worth you’d purchase at, the worth you’d promote at, or each, and let a yield-bearing token wait within the order till the market will get there.
Create a method on Carbon DeFi
Examine order sorts
How you can scale out and in with vary orders
How you can automate purchase low, promote excessive on repeat
This information is for informational functions solely and isn’t funding or monetary recommendation.
Glossary
Choice: A contract that provides the client the fitting, however not the duty, to purchase or promote an asset at a set worth by a set date.
Strike worth: The value at which an choice lets the holder purchase or promote.
Name choice: The correct to purchase on the strike worth.
Put choice: The correct to promote on the strike worth.
Expiry: The date an choice ends. After expiry, an unused choice is nugatory.
Premium: The value an choice’s purchaser pays its vendor up entrance. The vendor retains it no matter occurs.
Volatility: How a lot and the way shortly a worth strikes. Choice premiums rise when merchants anticipate extra volatility, which is what “volatility priced in” refers to.
Assigned / exercised: When an choice’s purchaser makes use of their proper, the vendor has to finish the commerce on the strike worth.
Money-secured put: Promoting a put whereas holding sufficient money to purchase the asset on the strike worth. You’re paid a premium to attend to purchase decrease.
Coated name: Promoting a name on an asset you already personal. You’re paid a premium to attend to promote increased.
Rolling: Closing an choice close to expiry and opening a brand new one with a later date, to maintain the commerce going.
The wheel: Promoting cash-secured places till assigned, then lined calls till the asset is bought, and repeating.
Settle / denominated: The place a commerce settles is what you really obtain (money or the token). What it’s denominated in is the unit its worth is quoted in.
Underlying: The asset an choice or product is predicated on, resembling ETH.
Oracle: A service that reviews an offchain or cross-market worth to a wise contract. A product priced by an oracle makes use of that quantity with out holding the asset.
Spot: Shopping for or holding the asset itself, now, reasonably than a contract on it.
ETH issuance: The brand new ETH created as rewards for the validators who safe Ethereum. The thread started with a debate about how a lot there ought to be.
Staking: Locking ETH to assist safe Ethereum in return for rewards.
Yield-bearing stablecoin: A stablecoin that earns a return, often by rising in worth towards the greenback.
sfrxUSD: Staked Frax USD, a yield-bearing stablecoin redeemable for a rising quantity of frxUSD.
stETH: Lido’s staked ETH token. Its pockets steadiness grows every day as rewards are paid (rebasing).
wstETH: Wrapped stETH. The steadiness stays fastened and every token turns into value extra ETH over time.
Rebasing token: A token that adjustments the steadiness in each holder’s pockets routinely. Carbon DeFi doesn’t help these.
APR / APY: Annual proportion fee is the yearly return with out compounding. Annual proportion yield contains compounding.
Restrict order: An order to purchase or promote at one worth you set.
Vary order: On Carbon DeFi, an order that buys or sells progressively throughout a worth vary you set. Crammed quantities don’t reverse.
Recurring order: On Carbon DeFi, a linked purchase vary and promote vary the place both sides’s fills fund the different.
Concentrated liquidity: Two-sided liquidity positioned inside a selected worth vary. It sells as worth rises and buys as worth falls.
Maker / taker: The maker locations an order and units the worth. The taker trades towards it.
Slippage: The distinction between the worth you anticipate and the worth you get.
Purchase the dip: Shopping for after a worth falls, at a stage you suppose is nice worth.
Bancor
Bancor is a pioneer in decentralized finance (DeFi), established in 2016. It invented the core applied sciences underpinning nearly all of at the moment’s automated market makers (AMMs) and continues to develop the foundational infrastructure essential to DeFi’s success — specializing in enhanced liquidity mechanics and sturdy onchain market operation. All merchandise of Bancor, together with Carbon DeFi and the Arb Quick Lane, are ruled by the Bancor DAO.
Carbon DeFi — Powered by Bancor’s newest patented applied sciences: Uneven Liquidity and Adjustable Bonding Curves.
Stay on Ethereum, Sei, Celo, COTI, and TAC.
The Arb Quick Lane — Carbon DeFi’s built-in solver system and DeFi’s most superior arbitrage infrastructure, powered by Marginal Worth Optimization, a brand new technique of optimum routing.
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Coated Calls and Money-Secured Places in DeFi: What They Are and What Onchain Orders Can and Can’t Do was initially revealed in Bancor on Medium, the place individuals are persevering with the dialog by highlighting and responding to this story.
