Today marks another expansion to Cega’s growing product lineup! Ethena’s USDe can now be deposited to earn safer, real yield via five new Cega products.
Before we dive in — 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 over $440M 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!
Why Ethena?
Ethena’s USDe has risen explosively to a $2.3+ billion market cap and has become a key innovative player in the stablecoin space, outpacing the growth of even USDC, USDT, and DAI. Despite its rapid adoption and innovative underpinnings, Cega recognizes the potential to create a more sustainable, long-term real yield opportunity that extends beyond incentivizations.
New USDe Products
Today’s launch introduces USDe (and even sUSDe) to Cega’s most loved FCN and DCS strategies. All USDe and sUSDe products are exclusive to Ethereum Mainnet.
- USDe Elephant (DCS) — 38.5% APY
- USDe Whale (DCS) — 5.1% APY
- USDe Cruise Control (B+O) — 10.4% APY
- USDe Gold Rush (FCN) — 11% APY
- Exclusive: sUSDe Gold Rush (FCN) — 11.0% APY
Earn $ENA using Cega
- TLDR: Yes, you will accrue Sats / $ENA on your USDe deposits into all Cega products except Cruise Control.
- How it works: For the duration of your Cega staking, your Sats points will be collected by the Cega vault smart contract and any $ENA claims will be redistributed by Cega back to your wallet if/once Sats are claimable for $ENA via Ethena. Your $ENA will be calculated based on a time & weight value percentage of the USDe & sUSDe deposited. Cega is in direct communications with the Ethena team to calculate and receive Sats points accrual balances.
- Disclaimer: Please follow updates and announcements from the Ethena team regarding the Sat points campaign via the official Ethena Labs X account. Ethena hosts the Sats Campaign as part of the $ENA airdrop. Holders of USDe earn Sats (points) and are able to multiply their earnings via a range of DeFi avenues. ****The campaign runs until September 2nd 2024, or until USDe supply hits $5bn, whichever happens first.
Exclusive Promotional Strategy 🌟
Today’s launch features an exclusive sUSDe product offering, only available to existing Cega users. This means you can only access and see the sUSDe vault if you currently hold Cega vault tokens in your connected wallet (for that chain).
Triple up on yield with (1) your native Ethena USDe staking, (2) Ethena points (Sats/$ENA), and (3) Cega’s real yield! Hurry — this strategy is capped at 50k sUSDe so get in quick!
Additionally, to celebrate the launch of Ethena on Cega, users can enjoy 50% off fees for the new USDe Cruise Control product for the first 2-months!💰
New to Cega? Benefits and Real Yield
Cega stands at the forefront of DeFi’s best real-yield strategies. As we introduce USDe into our suite of offerings, we provide greater access for more users in DeFi to earn safer and higher real yields. As of today’s launch, USDe & sUSDe holders can take advantage of both of Cega’s popular strategies: Dual Currency and Fixed Coupon Notes.
Dual Currency Strategy
This strategy allows users to earn and maximize yield on their crypto assets. Additionally, if market prices decrease to a certain level, investors buy ETH at a significant discount and also earn yield. Dual Currency products generate yield solely from options premiums (real yield) and there is no bond or lending component. Here’s a breakdown of how it works:
- Select two assets you like (e.g. USDe & ETH).
- Find the Cega Dual Currency product offering that pair (e.g. “USDe Whale”).
- Deposit one asset (USDe) into the Cega product vault. Vaults come with a preset ‘strike price’ linked to an asset, and are locked while trading for 27 days.
- On Day 27, receive payout in either USDe or ETH. Currency depends on if the linked asset’s market price is above or below the strike price.
- 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.
FCN Strategy
With FCNs, users deposit their assets and accumulate high, daily yield payments on their capital, paid after 27 days. Users also receive protection against severe market downturns up to 90%. As long as the price of underlying assets (e.g. ETH, BTC) do not fall more than the protection amount (called a “knock-in” level), investors receive the full amount of their initial deposit as well as accumulated yield. The real yield user’s earn is generated from options premiums and lending, and in the case of the ‘Pure Options’ strategy — no lending/bond component is present.
Cega Security 🔒
Cega’s #1 focus is security — creating a safer investment environment for our users. We recently had top auditing firm Ottersec do a comprehensive audit of the new FCN v2 and DCS codebase. 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 audit reports here.
How to Get Started
Cega prides itself on its simple, easy-to-use app. Deposit into your favorite product in a few simple steps:
1. Visit the Cega App & Connect your Wallet: Head over to app.cega.fi.
2. Make a Deposit: Browse the available products & select your favorite. Enter the amount of collateral (USDe) you wish to deposit, review the details, and confirm.
3. Sign up for Conversion Notifications: If you’re depositing into a Dual Currency product, use the form here to get email notifications when vaults have experienced a conversion.
4. 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.
For a more details, refer to our product guides.
Cega 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 (FCN vaults)
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.
Credit Risk (FCN B+O vaults only)
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.
Conversion Risk (Dual Currency vaults)
At maturity on Day 27, investors’ deposit currency may be converted to the alternate currency at a rate lower than the market. For DAI depositors, the alternative asset (ETH) will be purchased at the preset discounted price which may be a rate less optimal than the market rate.
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.
An Exciting Road Ahead
Cega is proud to extend the best Dual Currency and FCN strategies to a new community of USDe and sUSDe holders. This launch is just another step in our mission to bring traditional finance’s most elite products to DeFi, and extend access to all corners of the ecosystem.
In celebration of this launch, we invite our community to partake in a new Galxe quest. This event offers a chance to earn USDC rewards while exploring the benefits of our USDe products. Join us and experience firsthand the new possibilities at Cega. Learn more about the event here.
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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.
