Starting today, take your “buy low, sell high” strategy to the next level with Cega’s innovative DCS Rotation product — a hands-off way to earn continuous yield on DCS (Dual Currency Swap) vaults. Designed to mirror the popular “wheel strategy” from traditional finance, this feature automatically reallocates converted currencies into new vaults without requiring any action from the user.
Are you tired of panic selling or buying in at the top? With DCS Rotation, whether you’re invested in ETH Elephant, USDC Mammoth, or other products, your assets keep working seamlessly to maximize yield while executing the optimal “buy low, sell high” strategy. Learn more about this strategy and see our slick UI/UX below!
Overview of Key Benefits
Automated buy low, sell high — don’t worry about timing the market, you can now automatically execute the optimal “buy low, sell high” strategy. No more stress over market timing or monitoring.
Effortless, Continuous Yield — stop manually managing or tracking your DCS positions and ensure your investments keep growing without interruption. DCS truly becomes a hands-off, passive income strategy.
Superior ROI Potential — backtests show DCS rotation consistently outperforms for investors, beating alternate strategies by +15% more ROI in bear markets and +5% more ROI in sideways markets.
First-of-its-Kind in DeFi — DCS Rotation helps those who are not full-time traders time the market, setting a new standard for passive crypto investing.
Unmatched Flexibility — Choose the most popular rotation paths or customize your offering from over 70+ different DCS rotations, tailoring your strategy to fit your specific investment goals.
Why We Built This
When a currency conversion occurs, users receive yield and the converted currency at the end of the trade period. But, users need to withdraw and reallocate their assets, bringing unnecessary complexity. We know that DCS requires users to monitor their positions which may add stress and additional management overhead. What if the converted assets got automatically reallocated to a new vault of choice without user intervention? These insights drove the development of this product.
DCS Rotation In A Nutshell
DCS Rotation gives users who are invested in DCS vaults the ability to choose a follow-on vault in the case of currency conversion. This will reallocate converted currency upon vault maturity/rollover into a new vault for yield compounding.
Here’s an example of the flow of funds:
- User deposits ETH into the ETH Dragon vault.
- The ETH is earning 76.46% fixed APY from options premiums.
- When ETH price rises above 105% (the strike level), ETH is sold for profit to USDC.
- DCS Rotation happens — the USDC received from selling ETH is now deposited into USDC Dragon.
- USDC is earning 71.45% fixed APY from options premiums.
- When ETH price drops below 95% (the strike level), ETH is purchased at a discount. (and another DCS Rotation happens, the ETH is re-deposited into ETH Dragon)
DCS Rotation automates this entire cycle of buying low and selling high. The most important thing to note during the entire cycle is that the yield never stops being generated and there was no user intervention required — making this a first-of-its-kind passive investment opportunity from Cega.
DCS Rotation Details
For DCS Rotation to be enabled, the rotating vault must accept a deposit asset that’s the same exact asset as the conversion asset. Right now there are 70+ different paths for rotation.
Here are the top 5 rotations based on our most popular DCS vaults:
- ETH Elephant <> USDC Elephant
- ETH Whale <> USDC Whale
- ETH Dragon <> USDC Dragon
- USDC Mammoth <> ETH Whale
- USDC Dragon <> ETH Dragon
Users can also choose to rotate to ETH Bull Shark (ETH or USDC) or even Cruise Control (USDC, USDT, USDe), to be shielded from market volatility. The new user interface will display the possible rotation paths when you choose to deposit or on the “Portfolio” page if it’s an active investment.
Return on Investment Backtesting
We examine the historical performance of the DCS rotation strategy over various past periods and compared it to a simple Buy & Hold strategy. Our internal backtesting from a period of 2 years shows that DCS rotation strategies consistently outperform. In bear markets, DCS rotation outperforms buy & hold over 80% of the time, with an average excess return of approximately 15%. In sideways markets, DCS rotation outperforms buy & hold more than 65% of the time, delivering an average excess return of around 5%.
The following 4 charts show the Return On Investment of DCS Rotation vs. Buy & Hold over a longer period of time and in three different market conditions:
Quick Start Guide
The following step-by-step guide + tutorial video will help you quickly get started with DCS Rotation.
If you have a existing DCS vault:
1. Visit app.cega.fi.
2. Choose your network and connect your wallet.
3. Navigate to the “Portfolio” page.
4. Select the DCS vault you wish to enable Rotations for, and choose a vault from the dropdown.
If you are a new depositor:
1. Visit app.cega.fi.
2. Choose your network and connect your wallet.
3. Browse the Dual Currency products through the “Strategies” tab.
4. Choose the product that you want, choose the rotation path, and make a deposit.
Secure & Audited
Security is our top priority at Cega. The smart contracts and codebase for Cega’s new products underwent a comprehensive audit by top firm Ottersec. There have been no critical issues identified and all issues have been resolved. You can find the link to the audit report here.
Get Rotating!
We’re thrilled to launch DCS Rotation to the public. This important feature guarantees effortless, continuous yield while automating an optimal “buy low sell high” strategy all without user intervention. This solidifies Cega as DeFi’s leader in structured, passive income-generating investments.
For a limited time, we are running a promotion powered by Galxe where you could win a share of $500 USDC to invest with. Find more details here.
About Cega
Cega is the premier destination for decentralized structured investments, providing high fixed yields on stablecoins & alternative assets such as ETH, stETH, Pendle YT, wBTC and more. Cega strategies deliver yield enhancement, principal protection and more to an investor’s diversified DeFi portfolio. To date, we’ve facilitated over $500M in trading volume, with all of Cega’s products accessible on the Ethereum and Arbitrum networks, and a selection also available on Solana.
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.
