Launching: Cega Starboard

Cega
2 min readNov 25, 2022

Today we’re thrilled to introduce a new Cega vault product — Starboard. We developed this at this time to reflect on the current market condition and what our users want right now. We named the vault Starboard to reflect on the hopefulness for the future of DeFi.

Overview

  • Blue-chip exposure only to ETH and BTC underlying assets
  • Great yields of estimated 10% APR by using basket of options
  • Price protection against severe market movements up to 50% drop in the asset prices
  • BTC has never experienced a 50% fall during a 27d period in the past two years (including during Terra/Celcius crisis and FTX/Genesis crisis); ETH only saw 2 days falling past this level

Details

What is the Starboard vault strategy?

The Starboard vault is a Fixed Coupon Note that offers our users a yield on market exposure of Bitcoin (BTC) and Ether (ETH) with a downside price protection of up to 50%. The downside barrier will be observed on the worst performing of the underlying assets during the observation period of 27 days. The staked USDC in the vault will be rolled over to the next vault upon expiry. The standard maturity of each vault is 27 days. For more information and explanations about fixed coupon notes, please visit our official docs: https://docs.cega.fi/cega/products/overview/fcn.

Why Starboard?

We’ve heard feedback from many users who shared that they prefer exposure to blue-chip crypto assets only (BTC and ETH) instead of alt coins. We’ve also continued to hear interest for higher-yielding vaults while still striking a balance with safety against severe market movements. The Starboard vault meets users in the middle on both these fronts.

Fees & Charges

Cega collects a 15% performance fee on profits (not deposits) only if the FCN makes money for investors upon trade expiry. A 2% annual management fee is charged on a prorated basis per vault expiry.

How to Invest

The Starboard vault is available for deposits immediately and the deposit window closes next Thursday Dec 1 at 11am UTC (3am PT). The first Starboard vault trade is set for that same Thursday Dec 1 at 2pm UTC.

You can access the Cega Starboard vault here: https://app.cega.fi/products/starboard

New to Cega?

For new users to Cega, please see this article with beginner-friendly instructions on making your first deposit: https://cegafi.medium.com/the-0-to-1-guide-to-cega-4586f163f652

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Cega

Cega is building the next evolution in defi derivatives with the first protocol focused purely on exotic options.