Investment summary

Shark Fin

Product Description

The Shark Fin strategy offers the perfect balance of stability and attractive returns. It is a 100% principal protected product that generates guaranteed yield for the investor. Additionally, users earn a bonus payout if the price of the underlying asset remains within a predetermined range.

To generate yield, the Shark Fin strategy trades an exotic options structured product known in TradFi as the β€˜Shark Fin’, which combines an option with a bond (lending) component. Investors deposit their assets and accumulate a guaranteed yield, accrued daily on their capital, receivable after 27 days. Investors also receive a bonus yield payout if the price of the underlying asset (e.g., ETH, BTC) ends within the predetermined strike price and knock-out price range.

This strategy is tailored for conservative investors with a moderately bullish sentiment towards the market and are looking to secure guaranteed returns.

Strategic Use Cases

  • You are a conservative investor or DeFi lender who wants to outperform lending rates

  • You hold USDC, USDT, ETH or stETH, and want to maintain your asset upside potential while earning guaranteed yield

  • You want to generate yield on your assets whilst maintaining 100% principal protection

  • You want the opportunity to earn bonus yield if market conditions are moderately bullish

Features

  • These vaults trade Shark Fin Strategy - combining an Option with a Bond (lending) component.

  • Earn a guaranteed yield on USDC, USDT, ETH or stETH deposits (APY varies based on the deposit asset and market conditions).

  • Receive a bonus yield payout if the price of the underlying asset (e.g., ETH, BTC) ends within the predetermined strike price and knock-out price range.

  • 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 Shark Fin strategy generates real yield for investors from options payouts and a bond component. Here's a basic breakdown of the mechanics:

  1. Choose the Shark Fin product

  2. Select the underlying asset you'd like included for the product (ETH or BTC)

    • Vaults come with a preset 'strike' and 'knock-out' price that determine the bonus range

  3. Select & deposit your deposit asset (ETH, stETH, USDC or USDT)

  4. On Day 27, receive your bonus payout if the underlying asset price is within the bonus range

    • APY depends on where the underlying asset price lands within the bonus range

  5. All investors earn a guaranteed yield payment regardless of market movements

    • Yield paid is approx. APY * (27/365), where 27 is the duration of the trade in days, for a 27 day vault regardless of whether asset prices end up or down on Day 27

Products

Bull Shark - ETH UnderlyingBull Shark - BTC Underlying

Last updated