By Chainwire
4 min read
Singapore, Singapore, April 2nd, 2024, Chainwire
Cega, the DeFi structured investments platform, is thrilled to announce the launch of a pioneering financial product that will redefine yield generation in the decentralized finance arena. Bridging the gap between real-world assets (RWAs) and the DeFi ecosystem, Cega introduces the first-ever on-chain structured investment with gold-backed XAUT as an underlying asset.
This revolutionary product is designed to marry the safe haven asset class and diversification benefits of gold with the dynamic earning potential of DeFi options. Cega's novel approach is set to offer returns of up to 83% APY on popular staking currencies such as ETH, stETH, wBTC or stablecoins like USDC.
Users who stake their ETH for example will be paid yield in ETH, thus allowing them to maintain their asymmetric upside. Users benefit from yields more than five times higher than current lending/borrowing protocols or staking solutions, a leap forward in liquid staking opportunities and yield optimization.
Additionally, users receive downside protection on their deposits against significant market declines, up to 30%. This safety element is an attractive aspect of the fixed coupon note strategy (FCN) owing to a technical feature called a barrier option.
Sophisticated financial instruments like structured investments and exotic options have been the exclusive domain of traditional finance (TradFi).
Recognizing the potential to democratize access to these powerful tools, Cega is leading the charge by transplanting TradFi's most coveted investment strategies into the DeFi space.
Cega’s new strategy, Gold Rush, is a testament to its commitment to expanding DeFi by connecting on-chain derivatives, real-world assets, and the liquid staking ecosystem.
Users in DeFi want to stake native assets like ETH or liquid staking tokens like stETH, but don’t want to lose the asymmetric upside on those assets. Users also want safer, higher yielding opportunities without significant risk to their principal.
The new offering, Gold Rush, achieves both of these goals by trading a fixed coupon note (FCN) with exposure to Gold-backed XAUT and ETH. This enables users to gain exposure to safe haven assets and blue-chip cryptocurrencies while reaping the rewards of high DeFi yields. Increasing exposure to Gold has been a favored way to hedge against market uncertainty and increase portfolio diversification in traditional finance.
Previously, Cega FCNs were only available to users who staked USDC stablecoin by Circle. Through engineering improvements, the team has opened up the FCN to support numerous deposit assets for multi-collateral availability such as USDT, wBTC, stETH, and ETH.
Alongside today's launch, Cega affirms its focus on high-security standards following comprehensive audits by Ottersec and Coder4rena. Protection and safety remain foundational as Cega redefines the potential of yield-generating strategies.
Cega’s new offerings represent pivotal strides in the company's mission to innovate on DeFi investing. With nearly $400M in trading volume, Cega continues to solidify its lead in structured investments, extending its reach across Ethereum, Arbitrum, and Solana.
Cega invites crypto investors, DeFi aficionados, and the financial media to experience these innovative products. Join them as they usher in a new era of high-yield DeFi investment opportunities.
Cega is a DeFi structured investments platform that tailors TradFi's powerful investment strategies for the DeFi marketplace. To date, the project is responsible for nearly $400 million worth of transactions.
Championing transparency, security, accessibility, and high-yield opportunities, Cega represents the vanguard of the next evolution in decentralized finance. The protocol combines the spirited innovation of tokenized RWAs with traditional finance's reliable wealth-generation methods.
The protocol is backed by top investors including Dragonfly Capital and Pantera Capital.
Jamie Kingsley
Cega
j.kingsley@theprgenius.com
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