GM, Cega community! We’re thrilled to unveil our latest creations at Cega — the Puppy Vault and the L2 Vault. In this article, we’ll explore why these new structured investments are the perfect solution for those seeking diversified, risk-managed approaches to earning high yields in DeFi.
But first, let’s introduce ourselves. Cega is a decentralized structured investments protocol, empowering investors to earn high fixed yields on USDC stablecoin. Cega strategies deliver yield enhancement, principal protection, and more, to an investor’s diversified DeFi portfolio. Over $280M of trading volume has been processed to date. All of Cega’s vaults are now available on Ethereum and Solana networks (more to come).
Explore the Puppy Vault and the L2 Vault at app.cega.fi as we continue to unpack their features and benefits below. 👇
Puppy Vault Overview
- Estimated APY: Experience high yield returns up to 24.4% APY paid in USDC stablecoin.
- Underlying Assets: Exposure to popular meme coins, DOGE and SHIB.
- Knock-In Barrier: Your capital is protected even if the prices of DOGE and SHIB fall by up to 50% during the investment duration.
- Probability of Knock-In: Based on backtest results, the probability of capital loss is 4%.
- Investment Duration: 27-day investment duration with automatic rollover for compounding returns.
L2 Vault Overview
- Estimated APY: Expect high yield returns up to 63% APY paid in USDC stablecoin.
- Underlying Assets: Exposure to Arbitrum (ARB) and Optimism (OP).
- Knock-In Barrier: Your capital is protected even if the prices of ARB and OP fall by up to 50% during the investment duration.
- Probability of Knock-In: Based on backtest results, the probability of capital loss is 5%.
- Investment Duration: 27-day investment duration with automatic rollover for compounding returns.
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. Vaults are equipped with numerous custom features designed to optimize yield and protect your capital.
The Puppy Vault and the L2 Vault are part of the Pure Options Vaults (POV) family. POVs are designed to earn real returns from options premiums, making them a perfect fit for investors who prefer strategies without bonds or counter-party lending. With Cega’s POVs, your deposited capital accrues daily yield payments which are paid when the vault expires after 27 days.
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 DOGE and SHIB (for the Puppy Vault) or ARB and OP (for the L2 Vault) decrease by up to 50% during the investment duration (27 days).
Need a crash course in options? Find it in our ‘Derivatives 101’ section within the docs. Also, you can learn more about the lifecycle of our vaults here.
Benefits of the Puppy and L2 Strategies
High Yield
The L2 Vault and the Puppy Vault generate estimated fixed yields up to 63% and 24.4% APY respectively, offering an attractive return for investors.
Price Protection
Your investment is safeguarded against severe market downturns. Your capital is secure even if the underlying asset prices (DOGE & SHIB for the Puppy Vault or ARB & OP for the L2 Vault) fall by up to 50% during the 27-day investment duration.
Exposure to Meme Coins — Puppy Vault
Enjoy the thrills of meme coin markets with reduced risk, profiting from their higher volatility and lower correlation.
Exposure to Layer 2’s — L2 Vault
The L2 Vault provides an entry point to the rapidly growing Layer 2 market. Experience the dynamic potential of popular Layer 2 scaling solutions like Arbitrum (ARB) and Optimism (OP), while having your risk substantially reduced.
Strong Backtest Result
For the Puppy Vault, the chance of loss stands at an estimated 4%, while for the L2 Vault, it’s around 5%. This ensures a high level of capital safety in both vaults.
Compounded Returns
Capital and yields are automatically reinvested after each investment duration, compounding your returns over time.
Wondering how the Puppy Vault and L2 Vault compare with their sibling strategies? Let’s take a closer look below. ⬇️
Both the Puppy and L2 Vaults emerge as strong contenders, with high APY’s and robust price protection.
While the Puppy Vault is a unique opportunity for investors to delve into the volatility of meme coins with an added layer of security, the L2 Vault lets investors take part in the potential growth of popular L2 scaling solutions. No matter your preference, there’s an option for you at Cega.
How to invest in the Puppy & L2 Vaults
Ready to jump in? Here’s a quick guide to getting started:
- Visit the Cega Application: Head to app.cega.fi
- Connect Your Wallet: Connect your Ethereum (Metamask, Coinbase Wallet, WalletConnect) or Solana (Phantom, Solflare) wallet.
- Browse Cega’s Vaults: Check out the available vaults and find the Puppy Vault or L2 Vault.
- Invest in the Vault of your Choice: Enter the amount of USDC you wish to deposit, review your deposit, and confirm.
- Track Your Investment: The vault will start generating yield on the Thursday following your deposit. Keep track of your yield and positions in the Portfolio tab.
- Withdraw (Optional): Submit withdrawal requests anytime. Funds are returned to your wallet when the vault expires, or reinvested if not withdrawn.
For more detailed instructions, check out our comprehensive guides for using Cega on Ethereum and Solana.
Navigating the Potential Risks
Using Cega’s Puppy Vault and L2 Vault involves certain risks that you should be aware of:
- Market Volatility Risk
Your investment may be impacted if the price of the underlying assets fall by 50% or more within the 27-day investment duration. - 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 welcome you to our new vaults — Puppy and L2. Join our Discord community to get your questions answered and interact with like-minded Sanics.
Follow us on Twitter to stay up to date with the latest announcements and updates.
If you’d like to dive deeper into Cega’s products, our comprehensive Documentation and Support Guides are your go-to resources.
So, what are you waiting for? The world of decentralized structured investments awaits. Jump into the Puppy Vault or L2 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.
