Cega Introduces FCN V2 & New Golden Opportunities

Cega
Cega_fi
Published in
6 min readMar 26, 2024

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New opportunities arrive at Cega today as we unlock multi-collateral access to Cega’s much-beloved FCN strategy with USDT, ETH, stETH & WBTC options. To celebrate a new era in Cega FCN’s, we’re introducing a new investment product generating up to 83% APY — Gold Rush! Today’s launch is backed by enhanced security following a full-scale audit by Ottersec to ensure a safer investment environment. You can make your first deposit today at app.cega.fi.

A quick refresher. Cega is DeFi’s leading structured investments protocol, offering safer, higher yield strategies on a range of stablecoins and alternative assets such as ETH, stETH, WBTC and more. Cega strategies deliver yield enhancement, principal protection and more to an investor’s diversified DeFi portfolio. To date, we’ve facilitated nearly $400M in trading volume, with all of Cega’s products accessible on the Ethereum and Arbitrum networks, and a selection also available on Solana.

Now let’s explore what’s new!

Earn yield with FCNs using alternative assets

Cega’s FCNs have widened their investment capabilities today, accepting a range of new assets as deposit collateral — Welcome to FCN V2. Users holding USDT, ETH, stETH, WBTC, or USDC can now access up to 83% APY and strong downside protection that Cega’s FCNs provide. With new collateral assets, users who stake their ETH for example will be paid yield in ETH, allowing them to maintain their asymmetric upside. Users also 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. When depositing into any FCN product, simply select your deposit asset from the drop-down to see the available APY.

Welcome Gold Rush

Introducing ‘Gold Rush’ — the first on-chain option in DeFi with exposure to real-world Gold, a safe haven asset. Users gain market exposure to Gold (XAUT) whilst also receiving downside protection against significant market declines, up to a 30% price decrease. All while accessing high double-digit yields on preferred deposit assets like USDC ETH and stETH. With five deposit assets to choose from, we welcome Cega’s most exciting product to date. Here’s the specs:

  • Estimated APY: High yields ranging from 19% — 83% APY.
  • Underlying Assets: Gain exposure to real-world Gold asset XAUT and the blue-chip ETH
  • Staking Asset: Users deposit either USDC, USDT, ETH, stETH or WBTC into this vault.
  • Knock-In Barrier: Your capital is protected even if the prices of XAUT or ETH prices fall by up to 30% during the investment duration.
  • Probability of Knock-In: Based on backtest results, the probability of capital loss is low at 4.37%.
  • Investment Duration: 27-day investment duration with automatic rollover for compounding returns.

Crypto’s Real World Assets (RWA) narrative is experiencing rapid growth within the DeFi ecosystem — a necessary evolution for the industry. In particular, portfolio exposure to Gold is exciting for many users in DeFi who have been familiar with TradFi safe haven assets. This strategy is perfect for users seeking high yield while looking to diversify their DeFi portfolio allocation and gain exposure to assets that hold their value. With the new Gold Rush product, Cega is also bridging the gap between RWAs and structured investments, combining benefits such as downside protection and real yield with the excitement of real world assets like Gold.

Cega’s Gold Rush also opens the doors to an exciting opportunity for the billion-dollar liquid staking industry, as ETH stakers (and stETH holders) are presented with more opportunity to maximise their yield. Users can utilize their stETH with this product to earn more than 5x higher APY than current AMMs and staking products available.

New Audits, Same Security

Cega’s #1 focus is security — creating a safer investment environment for our users. We had top-firm Ottersec do a comprehensive audit of the new FCNV2 codebase prior to launch. Cega also received security consulting from a Code4rena top auditor during live development to ensure the safety of the codebase. Zero high-risk vulnerabilities were found, and all potential issues were addressed and patched. Please find and read the new FCNV2 audit report here.

Invest Simply with Cega

The way people interact with Cega is much the same — simple, quick and easy to understand. Cega’s new range of investment opportunities brings immense new value to users whilst maintaining the simplicity users love.

Depositing in your favorite vault:

1. Visit the Cega App: Head over to app.cega.fi.

2. Connect Your Wallet: Connect your Ethereum / Arbitrum wallet (Metamask, Rabby, Coinbase Wallet, WalletConnect).

3. Browse the ‘Dual Currency’ products: Take a look at the available products within the ‘Dual Currency’ tab.

4. Make a Deposit: Enter the amount of collateral (USDC, USDT, stETH, ETH or WBTC) you wish to deposit, review the details, and confirm.

5. Sign up for Conversion Notifications: Use the form here to get email notifications when vaults have experienced a conversion.

6. Monitor Your Investment: Your investment will begin accruing yield on the Thursday following your deposit. You can monitor your yield and positions in the Portfolio tab.

7. Withdraw (Optional): You can submit withdrawal requests whenever you want. Funds are returned to your wallet when the vault expires, or reinvested if not withdrawn.

For a more details, refer to our product guides.

Cega’s Risks and Mitigations

Cega vault strategies are sophisticated investment products that carry risks and are not suitable for investors who do not comprehend the product or are risk averse.

Principal at Risk

Your investment is taking a bullish perspective towards the underlying assets (e.g. XAUT, ETH) in the product structure. However, if these markets experience a significant downturn (e.g. 30% or more) that exceeds the ‘knock-in’ barrier within the 27-day investment duration, you may lose a portion of your initial investment.

Smart Contract Risk

While we prioritize security, on-chain transactions carry inherent smart contract risk. We conduct code audits and maintain continuous oversight to ensure user protection. Learn more in our comprehensive documentation.

Credit Risk

In the event of a market maker default, the owed yield may not be paid for the 27-day investment duration. However, your initial investment is fully on-chain, eliminating credit risk for this portion of capital. We collaborate with accredited market makers with a proven creditworthiness history to manage this risk. Read more about how we mitigate credit risk here.

No Slowing Down

Cega is thrilled to unveil the latest FCN advancement alongside the innovative Gold Rush strategy today. DeFi users can now enjoy Cega’s high yield on a wide range of popular stablecoin and alternative assets. There are 2 exciting opportunities to earn while you invest with Cega this month. Get involved below:

  1. Powered by Galxe — Complete the three quests and you could win a share of $500 USDT to invest with. Find more details here.
  2. Earn $DROP points with DropMate — Claim the Cega Pass and earn daily rewards when you’re invested in a Cega vault of your choosing. Claim it here. Note: this is not a $CEGA points system.

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Use of Cega’s Portal and Services is subject to the Cega Terms of Service. Access and use of the Cega Portal and Services is subject to a range of risks, including financial risk including potential loss of funds. The Cega Portal and Services are not offered to persons or entities who are U.S. Persons, Restricted Persons, or Sanctioned Persons (as defined in the Cega Terms of Service). Access and use by such persons is expressly prohibited.

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Cega
Cega_fi

Cega is building the next evolution in defi derivatives with the first protocol focused purely on exotic options.