This proposal is being posted on behalf of Bastion on their explicit request.

Bastion proposes for TrueFi DAO to sell call options on 5 million TRU tokens to Bastion Trading. Selling call options would:

- Generate option premium revenue if options are not exercised.

- Generate stablecoin proceeds from selling TRU at higher strike prices if options are exercised. 

TrueFi DAO would sell the following Bastion Trading covered call options, collateralized by TRU tokens:

- 30-day call options struck 25% above market on 2 million TRU tokens.

- 30-day call options struck 35% above market on 3 million TRU tokens. 

If exercised, Bastion pays a strike price in USDC to receive the TRU collateral. If not exercised, collateral is returned to Truefi DAO.

Read more: Bastion’s forum post