Introducing: Eth Stakers Vault

Cega
Cega_fi
Published in
5 min readSep 7, 2023

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Welcome back, Sanics! Today we introduce to you the newest addition to our lineup — the Eth Stakers Vault. In this article, we’ll break down why this structured investment is a strong way to tap into the growth of the liquid staking industry, backed by a solid, risk-managed approach.

For newcomers, a brief overview. Cega is your destination for decentralized structured investments, providing high fixed yields on USDC stablecoin. Cega strategies deliver yield enhancement, principal protection, and more, to an investor’s diversified DeFi portfolio. To date, over $300M of trading volume has been processed, and all of Cega’s vaults are now available on Ethereum, Arbitrum and Solana networks!

Ready to discover more about the Eth Stakers Vault? Dive in at app.cega.fi. But first, let’s unwrap its key features below. 👇

Eth Stakers Vault Overview

  • Estimated APY: Experience high yield returns of ~22% APY paid in USDC stablecoin.
  • Underlying Assets: Gain exposure to leading liquid staking projects LDO, RPL & stETH.
  • Staking Asset: Users deposit USDC into this vault.
  • Knock-In Barrier: Your capital is protected even if the prices of LDO, RPL or stETH prices fall by up to 50% during the investment duration.
  • Probability of Knock-In: Based on backtest results, the probability of capital loss is low at 4.79%.
  • Investment Duration: 27-day investment duration with automatic rollover for compounding returns.

Tap into the Growth of Liquid Staking

Liquid staking has emerged as the most dominant force in the DeFi sector, and the Eth Stakers Vault is capitalizing on this growing opportunity.

In just the past six months, the liquid staking space has experienced significant growth, with both Lido and Rocketpool seeing over 63% growth in their Total Value Locked (TVL) on average. Lido’s stETH currently represents a dominant 80.2% of the total market share in liquid staking with over 32% of all Ethereum staked through Lido, while RocketPool accounts for 4.3% in market share of liquid staking [source]. By selecting 2 of the 3 leading players in the space, we aim to reflect the industry’s momentum.

Structured Investing with Cega’s Vaults

Cega’s vaults bring structured investing strategies to DeFi, generating safer, higher, and real yields through carefully designed and backtested offerings.

The Eth Stakers Vault is another addition in the Pure Options Vaults (POV) and Leveraged Options Vaults (LOV) family. POVs are designed to earn real yield from options premiums, making them a perfect fit for investors who prefer strategies without bonds or counter-party lending involved. Deposited USDC is staked for 27 days and accrues daily yield payments which are paid when the vault expires. LOVs generate magnified yields for users up to 5x higher than POVs via embedded leverage.

Cega’s vaults streamline the investment process for you, focusing on high fixed yield, risk mitigation, and compounded returns. To participate, you simply deposit USDC stablecoin into the vault, and the capital remains protected even if the prices of LDO, RPL or stETH decrease by up to 50% during the investment duration (27 days).

Benefits of the Eth Stakers Vault 🤿

High Yield

The Eth Stakers Vault generates an estimated fixed yield up to 22% APY. This makes it Cega’s top 2 highest yield strategies within Cega’s product suite.

Price Protection

Your investment remains safeguarded against significant market downturns. The capital is secure even if the prices of the underlying assets, LDO, RPL & stETH fall by up to 50% during the 27-day investment duration.

Strong Backtest Result

The probability of loss is a low 4.79%, indicating a high level of capital safety. Backtesting based on the past two years shows that the Eth Stakers vault generates approximately 180% annual returns. Notably, these returns withstand the impact of two major market downturns. See here.

Compounded Returns

Capital and yields are automatically reinvested after each investment duration, amplifying your returns over successive cycles.

See below for a comparison of the Eth Stakers Vault with its sibling strategies. 👀

Note: Knock-in probabilities are based on historical data from the last 2 years.*

Investing in the Eth Stakers Vault

If you’re ready to get started, here’s a step-by-step guide:

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 Cega’s Vaults: Take a look at the available vaults and locate the Eth Stakers vault.

4. Make a Deposit: Enter the amount of USDC you wish to deposit, review the details, and confirm.

5. 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.

6. 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 detailed guide, head to our product guides.

Navigating the Potential Risks

As with all investments, the Eth Stakers Vault comes with certain risks, and it’s crucial for users to be fully informed.

  • Principal at Risk
    Your investment is taking a bullish perspective towards the underlying assets. However, if these markets experience a significant downturn of 50% or more 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 USDC 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.

Before you go 🤿

We’re excited to introduce you to the new Eth Stakers Vault. Join our Discord community to discuss strategies, ask questions, and engage with other Cega enthusiasts.

Stay informed with our latest developments by following us on Twitter.

For a deeper understanding of our vault mechanics and strategies, refer to our comprehensive Documentation.

Dive into the Eth Stakers Vault today!

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.