New Cega Products: The ETH & stETH Whale 🐋

Cega
Cega_fi
Published in
5 min readApr 9, 2024

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Today, we’re excited to unveil two new additions to Cega’s Dual Currency product suite — (1) ETH Whale and (2) stETH Whale.

The introduction of the Dual Currency Strategy (DCS) has delivered some of the best yields in DeFi for ETH & stETH investors. Cega has transacted over +$12M in DCS trading volume in the past 3 months, allowing users to maximize the product’s high yields and unique opportunities. Now, we’re adding two products designed to maximize opportunities amidst the volatile bull market. Users can now sell their assets at a profit level much higher than what current offerings provide. The opportunity is straightforward: earn yield on your ETH or stETH and sell for a 30% profit when markets are favorable.

The new products offer more opportunities to the billion-dollar liquid staking ecosystem, which currently lacks safer, higher yield strategies. Now let’s dive in!

Dual Currency Strategy: A Quick Overview

This strategy is valuable for DeFi users who want to:

  • Deposit ETH/stETH and get paid yield in ETH/stETH
  • Earn 4x higher yields than staking or lending pools without risky leveraged positions
  • Sell ETH for USDC at a 30%+ profit in 27 days, only when markets are favorable
  • Keep accumulating ETH/stETH from yield paid in ETH/stETH when markets are down

This presents a unique opportunity for users to maximize/earn yield on their crypto assets, while seizing an opportunity to sell assets for a profit. Dual Currency products generate yield solely from options premiums (real yield) and there is no bond or lending component present.

How it works for users

  1. Select two assets you like (e.g. stETH & USDC).
  2. Find the Cega Dual Currency product offering that pair (e.g. “stETH Whale”).
  3. Deposit one asset (stETH) into the Cega product vault. Vaults come with a preset ‘strike price’ linked to an asset, and are locked while trading for 27 days.
  4. On Day 27, receive payout in either stETH or USDC (or other assets per your currency strategy). Currency depends on if the linked asset’s market price is above or below the strike price.
  5. All investors also receive a yield payment regardless of market movements. Yield paid is approx. APY ÷ 12 for a ~one-month vault regardless of whether asset prices end up or down on Day 27.

The Whale Strategy

The whale strategy delivers the most conservative Dual Currency products available at Cega with a new strike price of 130%. Users can now earn the high yield DCS products provide, and potentially sell for a profit higher than before (when the market is in their favor). The Whale products are more suited to the high volatility that we see in bull market conditions, providing the ability to maximize the opportunity of your upside holding ETH or stETH. Take a look at the new Dual Currency products below.

1. ETH Whale 🐋

Deposit ETH and earn a sustainable 18% APY. This product is for you if:

  • You’re holding ETH and are looking to gain additional yield.
  • You’re comfortable selling your ETH for USDC when market conditions are very favorable (+30%).
  • You’d like to take the most conservative approach to the Dual Currency strategy.

2. stETH Whale 🐋

Deposit stETH and earn a sustainable 18% APY. This product is for you if:

  • You’re holding stETH and are looking to gain additional yield.
  • You’re comfortable selling your stETH for USDC when market conditions are very favorable (+30%).
  • You’d like to take the most conservative approach to the Dual Currency strategy.

Security and Audits

Security is our #1 priority at Cega. Our Dual Currency codebase successfully passed a comprehensive audit by top firm Ottersec. The contracts also received expert consulting from Code4rena’s top auditor during live development. Zero critical vulnerabilities were identified, and all identified issues were patched and addressed immediately. Find the Dual Currency audit report here.

How to Get Started

Here’s a step-by-step guide if you’re ready to jump in:

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 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.

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.

Conversion Risk

At maturity on Day 27, investors’ deposit currency may be converted to the alternate currency at a rate lower than the market. For ETH or stETH depositors, the deposit asset will be sold for USDC at a preset profit level (+30%) which may be less optimal than the market rate (diluting potential upside).

Smart Contract Risk

Security is priority, however all on-chain protocols and transactions carry inherent smart contract risk. We conduct code audits and maintain continuous oversight to ensure user protection. Our audit reports are listed in Cega’s documentation.

Before you go 👀

Cega is excited to broaden the scope of the Dual Currency strategy with the exciting addition of the ETH and stETH Whales. These new products underscore our commitment to meeting the communities needs, as we continue to create opportunities for enhanced investment flexibility and higher yield potential.

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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.