Thetanuts Finance unveils Stronghold Vaults for crypto trading

abdelaziz Fathi

DeFi platform Thetanuts Finance has rolled out a new trading product that offers non-inflationary return opportunities. Called “Thetanuts Stronghold index vault,” the new vehicle also provides users with risk management tools as well as improved user experience.

Thetanuts Stronghold enables traders betting on a rise or drop in implied or expected price volatility over a specific period to avoid the headaches associated with options strategies. In particular, it allows them to stake their assets directly into DeFi Option Vaults.

Sophisticated traders, who are front-running the changes in implied volatility, can benefit from customized option vault indexes created by Thetanuts researchers.  These indexes provide them with organic yield generated from option selling, benchmarked against major ecosystem tokens.

Thetanuts Stronghold vaults simplify the otherwise complicated options trading for retail investors. All users need to do is to deposit their coins in the vaults, which take care of complexities like choice paralysis, liquidity lock and concentrated risk.  Their staked assets are automatically deployed into specified covered selling option strategies through the use of smart contracts. The strategy is similar to running a typical position on the S&P 500 index to benefit from an expected decline in prices.

The premium collected from selling options represents the yield from the trade and is distributed among users in proportion to their deposits. In addition, once users enter a vault position on other protocols, their liquidity is collateralized and can only be withdrawn once the vault expires.

“The base yield is obtained via the payment of premiums as opposed to the inflationary token rewards seen in many other DeFi protocols. Users receive a yield-bearing token that generates superior returns by selling options across the curve, while benefiting from a diversified risk profile. The strike prices and expirations of each Stronghold strategy are algorithmically determined to generate the highest risk-adjusted yield,” the company explains.

“I am excited about Thetanuts Stronghold because it gives users great risk adjusted returns through selling diversified option selling strategies.” said Stelian Balta CEO of Hyperchain, an investor in Thetanuts. He added “great team and looking forward to Thetanuts being the future benchmark of yield generation.”

Thetanuts Stronghold offers simpler investment choices and diversification as investors can select products that accept tokens from 11 blockchains as collateral, with the aim of offering the most competitive risk-adjusted yield opportunities.

Initially launched with the USDC Stronghold index vault, the product is live now on Ethereum, Binance Smart Chain and Avalanche, with Polygon, Fantom and other chains to follow suit shortly. As the product gains traction among DeFi investors over the coming months, Thetanuts will launch other Stronghold indexes for additional major crypto assets.

Read this next

Education, Inside View

Charting the Course: Expert Analysis on GBP/USD Signal

The GBP/USD is one of the highly regarded currency pairs in the world of Forex trading, known for being liquid, volatile, and having narrow spreads. Traders Union’s analysis combines the latest economic data, market news, and technical indicators, giving all the insights needed to make informed decisions about trading pounds and dollars.

Institutional FX

Iress’ QuantHouse adds BMLL’s historical order book data

“Across the industry, as sophistication levels increase, the demand for superior quality historical market data is intensifying. Market participants need easy access to global, ready-to-use data to improve their own products and strategies, gain a deeper understanding of liquidity dynamics, and generate alpha more predictably, without the burden of data engineering and infrastructure on their P&L.”

SEO

Binance Australia: Revolutionizing Cryptocurrency Trading Down Under

In 2024, Binance Australia continues to shape the cryptocurrency landscape, offering innovative trading solutions and comprehensive support for Australian traders. This article explores its services, regulatory compliance, and what makes it a top choice for crypto enthusiasts in Australia.

Inside View

European share trading is much higher than believed, says report

“Regulators in the EU and UK need to take the opportunity presented by the imminent establishment of a Consolidated Tape for shares and ETFs to update relevant post-trade transparency rules, so that they capture the full scope of share trading activity in Europe. Without this, Europe risks being left behind.”

Digital Assets

Abra launches prime solutions for digital assets

As an SEC-registered RIA, ACM will now operate as a fiduciary and allow clients to get exposure to the digital asset ecosystem under a separate account structure built on-chain, where clients retain title and ownership over their assets and their assets will be independently verifiable on-chain.

Retail FX

Unusual Whales taps Tastytrade as exclusive options broker

“We’re huge fans of Unusual Whales and the transparency they bring to the markets, enabling traders to make informed decisions.”

Industry News

GenAI can help transform OTC derivatives markets, said ISDA whitepaper

The risks of GenAI, however, include data breaches, regulatory issues, bias, as well as sub-standard or simply false results.

Institutional FX

B2Broker ups leverage on major Forex pairs, BTC and ETH

“This strategic update not only enhances our clients’ competitive edge but also augments their capacity to cater to the evolving demands of their clientele, attract new business, and elevate their service standards by leveraging our liquidity solutions.”

Industry News

Avraham Eisenberg convicted of $110 million DEX manipulation

Avraham Eisenberg, 28, has been convicted of commodities fraud, commodities market manipulation, and wire fraud in connection with the manipulation of the Mango Markets decentralized cryptocurrency exchange.

<