Flat Money V2 Review 2026: Everlasting Options Explained

Flat Money V2 is a DeFi protocol on Arbitrum and Optimism. The current homepage pitches everlasting options: users supply liquidity to a covered call and earn funding and options premium. The stated aim is to turn crypto into a cash flow machine without managing strike prices or expiry dates.

The wider Flat Money project is also described by a DeFi tracker as a smart-contract protocol for minting UNIT, a flatcoin backed by liquid staking ETH. That is why the tracker files it under partially algorithmic stablecoins. The homepage today focuses on options, and a legacy app link points to earlier products.

The protocol is small, with about $1.1 million in total value locked and a flat week-on-week change. It lists two audits and mentions Sherlock for the everlasting options audit. Fees, team and governance details are not published on the homepage.

An option gives its holder upside exposure to an asset. Normal options expire on a set date and have a fixed strike price. Everlasting options remove both, so the position stays open, and the holder pays a continuous funding rate instead.

Flat Money's covered call sits on the other side. Liquidity providers deposit funds that back leveraged long calls with no expiry. In return they receive the funding payments and option premium. The homepage says this liquidity powers protected leveraged tokens on Toros.

The benefit is that providers avoid rolling strikes and expiries, so income accrues nonstop. The cost is that a covered-call seller gives up some upside and can lose if the underlying moves sharply against the position. The homepage does not give the exact payout formula, so the docs are the place to check it.

The homepage does not publish a fee schedule. It does not state performance fees, deposit or withdrawal charges, or a target yield for the covered call.

Users will pay network gas on Arbitrum or Optimism for every transaction. Any protocol fees should be shown in the app after connecting a wallet and in the documentation, so check both before depositing.

The homepage says the everlasting options audit was conducted through Sherlock, and two audits are listed in total. Audits lower the odds of bugs but cannot guarantee safety. Read the reports and check which contract versions were covered.

The protocol is non-custodial in the sense that users interact from their own wallet, but deposited funds sit in smart contracts. Risks include contract bugs, oracle or market-data failures, losses from sharp price moves and thin liquidity at roughly $1.1 million TVL. The team, any admin keys and any insurance are not described on the homepage. There is no deposit protection, and users should not deposit more than they can afford to lose.

Flat Money V2 is for intermediate DeFi users who understand options, funding rates and smart-contract risk and want yield from supplying liquidity to everlasting covered calls. It is not suited to beginners who want a fixed, guaranteed return or to anyone who cannot accept possible loss of principal.