Shark Fins - Frequently Asked Questions


Q: Where is the yield coming from?

Yield is generated by combining the yield from a bond (lending) an option on BTC or ETH (long call). User deposits in Shark products are lent to borrowers who pay an interest rate as yield. In addition, a portion of the interest yield is used to buy long calls that may produce a high bonus payout.

Q: In what market conditions do these products perform best?

Regardless of market performance, users earn a guaranteed minimum yield. In addition, a high bonus payout is paid on Bull Shark products if underlying assets rise between two strike prices (e.g. Bull Shark strikes are 110% to 125% levels). Bull Shark products are ideal for investors who have a moderately bullish view on crypto markets.

Q: When can I initiate a withdrawal?

Users can initiate a withdrawal at any point during the vault's tenure. However, withdrawals will only be processed at the end of the 27-day tenure.

Q: What is the minimum amount required to invest?

There is effectively no minimum deposit amount (technically there exists a small min threshold approx. $1 USD).

Q: Why and when is wstETH used for Cega products?

Wrapped staked ETH (wstETH) is a token created by Lido and is the DeFi compatible version of staked ETH (stETH). The wstETH token was created because stETH is a rebasing token, does not have a constant balance, and therefore is not supported by most DeFi applications. For more information about wstETH, please visit Lido's documentation here: link.

On Ethereum Mainnet -- all Cega stETH products take stETH deposit and pay-out in stETH. This increases accessibility and ease-of-use for users. Under the hood, stETH deposits are wrapped into wstETH using Lido's native smart contract. The 27 day vault strategy trades the wstETH which is why the underlying linked asset is wstETH, and why wstETH is used for final payoff calculations.

On Arbitrum -- all Cega stETH products take wstETH deposit and pay-out in wstETH. This is because stETH does not exist on Arbitrum. Wrapped stETH is also the underlying linked asset for payoff calculations.

Q: How does the math work for stETH and wstETH? I deposited 1 stETH but got less than 1 wstETH back.

At a high level, the wstETH and stETH contracts keep track of total supply and price, and issue accordingly. The total supply of stETH is changing at all times since it's rebasing. It tries to peg to the price of ETH, and in order to generate yield it generates more tokens. wstETH on the other hand is constant, so in order for the redemption to match the number of stETHtokens, the wstETH price is higher.

Q: When should I submit for withdraw request?

If you would like to withdraw, you must submit your withdrawal request prior the vault expiry date. Vaults expire after 27 days and you can see the expiry date (and when you'll receive your withdrawal) in the Portfolio page.

Q: I requested for withdrawal a few days ago but I haven't received the funds yet.

You will receive your funds once the vault expires. Vaults trade for 27-days, and you can see your vaults expiry in the portfolio page by clicking on your active investment.

Q: I requested a withdrawal just after the vault expired, when will I receive my withdrawal?

If you do not request you withdrawal before the vault expiry date, your investment will automatically be rolled over to the next vault. Your withdrawal request will be applied to the new vault, and your funds will be withdrawn at the expiry of the new vault.

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