Investment summary

Dual Currency

Product Description

This strategy trades a Dual Currency structured product. Today, many investors hold assets like ETH, stETH or WBTC, anticipating significant future growth. Meanwhile, others prefer to keep cash on hand, awaiting favorable dips in the market to buy assets for a discount. For both aforementioned investors, Dual Currency strategies offer strong benefits.

For cryptocurrency holders, it presents an opportunity to earn high fixed yields while minimizing potential downside, with the least favorable outcome still being a profitable exit from your position. For stablecoin depositors, it provides high yields and the possibility of acquiring assets at a large discount, the "worst case" being an accumulation of assets they already want or are confident in.

Strategic Use Cases

  • You want to buy ETH but think current prices are too high. You want to be paid in stablecoin while waiting for a price drop to buy ETH when it's cheaper -> review the "USDC/USDT/DAI/USDe Dragon & Elephant" products

  • You want to maximize yield on your ETH, stETH or WBTC holdings. You're also comfortable selling these assets for a 5% - 10% profit -> review the "ETH/stETH/WBTC Dragon & Elephant" products

  • You want the most conservative Dual Currency products and comfortable selling your deposit assets for a +30% profit-> review "Whale" products

Features

  • These vaults trade the Dual Currency strategy β€” no bond/lending component is involved

  • Earn 8% to 150% APY on USDe, USDC, USDT, DAI, ETH, stETH and WBTC deposits (APY varies based on market conditions)

  • Invested capital is locked for 27 days

  • Vaults automatically rollover upon expiry to compound returns

  • European option-type (payouts are calculated and redeemed based on the prices at the 27-day vault expiry)

How to Get Started

The Dual Currency strategy generates real yield for investors from options premiums. Here's a basic breakdown of the mechanics:

  1. Pick two assets you like (e.g. ETH & USDC)

  2. Choose the Cega Dual Currency product offering that pair (e.g. β€œETH Dragon”)

  3. Deposit one asset (ETH) into the Cega product vault

    1. Vaults come with a preset 'strike price' linked to an asset, and are locked while trading for 27 days

  4. On Day 27, receive payout in either ETH or USDC (or other assets per your currency strategy)

    • Currency depends on if the linked asset's market price is above or below the strike price

  5. All investors also receive a yield payment regardless of market movements

    • Yield paid is approx. APY Γ· 12 for a ~one-month vault regardless of whether asset prices end up or down on Day 27

Products

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