2022-6-8 17:26 |
Thetanuts Finance, a DeFi platform that makes options trading simple, has launched a new product that offers a simpler user experience, high risk management, and sustainable returns – the Thetanuts Stronghold index vault, Invezz learned from a press release.
It makes it possible for users to avoid the hassles connected to options strategies. This is achieved with direct asset staking into DeFi Option Vaults. The function is not unlike the S&P 500 in stock trading, standing for indexes aiming to offer organic yield generated from selling options and benchmarked against leading ecosystem tokens.
Automatically deployed user assetsThe platform’s protocol deploys staked assets into specified covered selling option strategies automatically. This is done using smart contracts. You get the base yield by paying premiums, not like with other DeFi protocols’ inflationary token rewards.
You get a yield-bearing asset that sells options to generate superior returns, taking advantage of a diversified risk profile. The expirations and strike prices of the respective strategy are determined through an algorithm to generate the highest yield adjusted for risk.
Stelian Balta, CEO of Hyperchain, an investor in Thetanuts, said:
I am excited about Thetanuts Stronghold because it gives users great risk adjusted returns through selling diversified option selling strategies.
Solving problems around liquidity lockThe protocol strives to solve problems around focused risk, liquidity lock, and choice paralysis. Investors are often forced to choose a myriad of vaults on the same blockchain, making it hard to pick the most suitable one.
Moreover, a user’s liquidity is collateralized when they enter a vault position on other protocols. They can only withdraw it with expiration of the vault.
Withdraw liquidity at any timeLast but not least, investors in Thetanuts Stronghold can take advantage of simpler investment choices and can withdraw whenever they want. At the same time, diversification guarantees risk management.
Multi strike, multi asset, and multi tenor options back the Stronghold indexes. They protect users from bear markets and the associated vault draw-downs.
The post Thetanuts Finance launches Stronghold index vault appeared first on Invezz.
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