# Canonical: https://www.uddalak.xyz/hyperliquid-academy/article/48-rysk-finance
# Author: Uddalak Das
# Last source: https://www.uddalak.xyz/hyperliquid-academy/article/48-rysk-finance

---
title: "Rysk: Fully Collateralized Options on HyperEVM"
description: "How Rysk uses covered calls, cash-secured puts, and RFQ auctions to bring volatility yield directly onchain."
track: "Ecosystem"
level: "Advanced"
primary_icp: ["trader", "DeFi-native user"]
secondary_icp: ["institutional decision-maker"]
reading_time: "3 min"
last_reviewed: "2026-09-07"
protocol_url: "https://rysk.finance/"
snapshot_tvl: "$46.8M on Hyperliquid L1"
---

# Rysk: Fully Collateralized Options on HyperEVM

Rysk is an options protocol live on HyperEVM. Its current product centers on **covered calls and cash-secured puts**, allowing users to sell volatility for an upfront premium while fully collateralizing the obligation onchain.

DefiLlama lists about **$46.8 million** of Rysk Finance TVL on Hyperliquid L1 as of August 31, 2026.

```mermaid
flowchart LR
    A[Option seller chooses strike and expiry] --> B[RFQ auction]
    B --> C[Counterparties submit prices]
    C --> D[Best quote selected]
    D --> E[Premium paid upfront]
    E --> F[Collateral locked in contract]
    F --> G[Automatic expiry settlement]
```

## Covered means the obligation is pre-funded

For a covered call, the seller locks the underlying asset needed if the option finishes in the money. For a cash-secured put, the seller locks enough stablecoin to buy the underlying at the strike under the contract rules.

This removes the maintenance-margin liquidation path associated with a naked leveraged option position. It does not remove risk: the seller can still experience a large opportunity cost or economic loss relative to simply holding the asset.

## RFQ separates pricing from settlement

Rysk uses a request-for-quote mechanism. Counterparties compete to price the desired strike and expiry, then the selected trade settles through onchain contracts.

That is different from maintaining a continuously quoted onchain central limit order book for every strike and maturity. Options fragment liquidity across many instruments, so RFQ can concentrate market-maker attention on the exact trade a user wants.

## Volatility becomes a tradable source of yield

A covered-call seller is effectively accepting a cap on upside above the strike in exchange for premium today. A cash-secured put seller accepts downside purchase exposure below the strike in exchange for premium.

Calling that premium "yield" is convenient, but it should not be confused with a risk-free interest payment. The return is compensation for taking option exposure.

## Why Rysk matters to Hyperliquid

HyperCore established deep onchain perp markets. Rysk demonstrates the complementary role of HyperEVM: independent smart contracts can add a different derivative payoff structure without requiring it to become a native HyperCore primitive.

## Sources

- https://docs.rysk.finance/
- https://docs.rysk.finance/getting-started/protocol-and-product/how-it-works
- https://defillama.com/chain/hyperliquid-l1