“High Yields, Blue Chip Only”
60%+ APY; BTC & ETH; 30% Price Drop Protection; 27d FCN
The Cega Supercharger vault is a Fixed Coupon Note that offers users a yield on market exposure of Bitcoin (BTC) and Ether (ETH) with downside price protection of up to 30%. 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 or early redemption. The standard maturity of each vault is 27 days. Unlike other Cega strategies, the knock-out barrier (130%) was removed for Supercharger to improve liquidity distribution across weekly trades and effect better pricing for users
Key Benefits
- Superior yields of 60%+ APY (live quote as of 10/13/2022) by using worst-of options.
- Blue-chip only exposure with BTC and ETH underlyings.
- Price protection against moderately large market declines, up to a 30% drop in underlying assets.
- Strong backtest result shows ROI of +28% p.a. (conservative case) and +241% p.a. (high case), both outperforming buy-and-hold strategies.
Backtest
Analysis time period: April 2021 to Oct 2022
Historical analyses show that Supercharger generates strong returns ranging from +28% per annum (conservative case) to +241% per annum (high case). This ROI also outperforms the alternative “Buy & Hold” Strategy many of our users would otherwise consider which yielded -28% per annum. Investors will observe that knock-in events occur during the backtest due to historical market movements greater than the 30% price protection barrier — despite this, the higher APY given the higher risk as well as frequent compounding generates strong net returns for investors.
How to Invest
Supercharger will be publicly announced and open for deposits on Thursday 10/13 at 7am ET. Deposits close 7 days later on 10/20. The first Supercharger vault trade will be executed on 10/20 at 7am ET.
Financial Disclaimer
Cega is not an investment advisor and does not provide financial advice. Cega content is intended to be used and must be used for information and education purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find through Cega’s website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
