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 ‘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:
Choose the Shark Fin product
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
Select & deposit your deposit asset (ETH, stETH, USDC or USDT)
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
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
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