As demand for crypto derivatives products continues to grow unabated, multi-chain structured products protocol Thetanus Finance has upgraded its existing suite of investment products with the addition of the new Stronghold Index Vault. The Stronghold Index Vault represents a novel trading product designed to offer investors access to non-inflationary return opportunities alongside diversified risk management and a simplified user experience.
Like its existing suite of products, the Stronghold Index Vault is aimed at regular users that aren’t necessarily as sophisticated as institutional investors. By employing smart contracts and algorithms, this newly-launched vault aims to simplify the yield earning process while simplifying the entire process of options trading. With Thetanuts’ Stronghold protocol, users will be able to overcome the existing hurdles associated with options strategies by directly staking their assets into the platform’s DeFi Option Vaults (DOV).
Each customized vault option in the Stronghold protocol has been purposefully designed by the team of Thetanuts researchers, whereby organic yields generated from option selling are benchmarked against the major ecosystem tokens. Accordingly, the staked assets of the users will be automatically deployed across multiple specified covered options selling strategies, powered by the platform’s underlying smart contracts.
Thetanuts Stronghold is debuting the USDC Stronghold Index vault, which will initially be available on Ethereum, Binance Smart Chain In the future, support will also be added for Avalanche, with Polygon, Fantom, and other chains expected to arrive later. As the product catches on with decentralized finance (DeFi) investors, Thetanuts will launch Stronghold indexes for other major crypto assets, further diversifying its product suite.
One Vault, Many Features
Unlike existing DeFi protocols, where users generally receive inflationary tokens as rewards, the base yield for Stronghold Index Vault is gathered from the payment of option premiums. As a result, users will receive yield-bearing tokens, which can be used to generate higher returns by selling options across the curve. At the same time, the strike prices and expirations of each Stronghold strategy will be determined via algorithms to generate the highest risk-adjusted yield, thus allowing users to benefit from a diversified risk profile.
Furthermore, Stronghold Index Vault also solves the limitations of existing options strategies, allowing users to benefit from more straightforward investment choices and more flexibility. Since all Stronghold indexes are backed by multi-strike, multi-tenor, and multi-asset vaults aggregated into a single Stronghold token, the protocol safeguards users from unfavorable market conditions, especially during bearish runs. It also features built-in protections to help users navigate temporary market downturns via mean reversion.
Unlike competing DeFi protocols, Stronghold allows users to withdraw their liquidity at any time. This isn’t possible with most other DeFi protocols because user liquidity is collateralized and can only be withdrawn after the vault expires as soon as an investor enters a vault position. Moreover, existing protocols with single-strike tenor vaults carry the risk of excessive losses as investors may lose all of their money in a single strike. By comparison, Stronghold’s multi-strike feature ensures diversification and spreads risk, helping users mitigate risks and maximize returns.
The Thetanuts team has also implemented two core updates in the newly-launched Stronghold vault to optimize the user experience further. All products that are part of the Stronghold protocol are consolidated into a single and highly intuitive panel, empowering users to seamlessly track, identify, interact with indexes, and better understand the underlying blockchains that host these assets. In addition, Stronghold Vault streamlines the process of yield generation, making it as easy as swapping any on-chain asset. Users can simply swap all supported underlying assets for Stronghold tokens and vice-versa with a click and move in and out of positions anytime.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice