oTokens represent options contracts and are used to customize automated derivatives strategies by inputting specific variables such as the derivative’s expiration date, strike price, strike asset, and whether it is a call or put option. They can then be deposited into token vaults on Ribbon Finance, Curve, SushiSwap, Alpha Finance, and other Opyn-integrated DeFi protocols. This structure enables users to carry out specific investment strategies while earning weekly compounding yields.