Toros Everlasting Options
Toros Everlasting Options are onchain options that run continuously with no expiry dates. They power multiple Toros products including Protected Leveraged Tokens, Covered Call, and Short Volatility.
Instead of a single upfront premium and a fixed expiry, Everlasting Options use ongoing payments that settle continuously onchain. This removes expiry pressure and the need for manual rolls.
The Two-Sided Marketplace
Everlasting Options operate as a closed-loop, two-sided marketplace.
Side One: Long-Side Demand (Toros Protected Leveraged Tokens)
Users buy Protected Leveraged Tokens through Toros. These positions:
Pay a premium when opening the position
Pay ongoing funding for holding the position
Receive a BTC downside protection floor (strike price) in return
Side Two: The LP (Covered Call LP)
LPs supply WBTC to the Covered Call LP pool. In return:
LPs receive all ongoing payments from long-side users (funding + premiums)
LPs take full BTC downside exposure
LPs give up some BTC upside once the strike price is reached
This creates a continuous payout cycle where demand for leveraged BTC exposure pays income to LPs.
How Everlasting Options Work
Everlasting Options behave like a call option that never expires. Instead of one upfront premium, long-side users pay a small ongoing premium and a continuous funding payment. The Covered Call LP receives these payments.
This removes expiry pressure and removes the need for manual rolls. The result is a smoother income pattern for LPs and predictable protection costs for long-side users.
Flow of Funds
LP supplies WBTC to the Covered Call LP pool
Toros users open a Protected Leveraged Token position
Toros users pay a premium and ongoing funding
All payments flow directly to the LP
LP yield adjusts over time based on market activity and BTC price
LP can exit at any time
No external leverage. No off-chain activity. Everything is backed 100 percent by WBTC in the contracts.
LP Payoff Profile
The LP payoff resembles a covered call:
BTC moves sideways: LP income continues without much change. This is often the most stable range for revenue.
BTC rises: Returns flatten once the strike price is hit. LPs keep income but do not track the full BTC rally above that range.
BTC falls: Revenue from funding and premiums smooths part of the drawdown, but LPs hold full BTC downside.
Summary:
Full BTC downside
Capped BTC upside
Continuous income from long-side demand
Why the System Needs Both Sides
Toros Protected Leveraged Tokens rely on deep LP liquidity. The LP provides the WBTC required to support long-side exposure. Without the LP, long-side users could not open or maintain their leveraged BTC positions.
This creates a reinforcing cycle: more Toros demand leads to more LP income, which attracts more LP liquidity, which supports more Toros positions.
Underlying Infrastructure
Toros Everlasting Options use Flat Money contracts at the smart contract level. All positions are fully collateralized with WBTC, non-custodial, and open for inspection onchain. For audit details, see Security and Audits.
Products Built on Everlasting Options
Protected Leveraged Tokens — leveraged upside with a downside protection floor (long side)
Covered Call — recurring BTC income strategy (LP side)
Short Volatility — range-bound volatility strategy combining Covered Call LP with a BTC short
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