Thetanuts Finance, the cross-chain structured DeFi platform, has expanded its existing product suite with its new Stronghold Index Vault launch. This new addition to Thetanuts’ diverse range of vaults for options strategies is designed to offer users non-inflationary returns, paired with a simplified user experience and intelligent risk management.
Thetanuts Stronghold is now available with the USDC Stronghold index vault, with other indexes for major crypto assets set for introduction over the coming months. The protocol is now live on Ethereum, Binance Smart Chain, and Avalanche, and it will soon be released on Polygon, Fantom, and other chains.
The Thetanuts Stronghold protocol automatically moves a user’s staked assets into certain covered option strategies using smart contracts. Instead of the inflationary token rewards embraced by other DeFi protocols, the base yield is obtained by paying premiums. As a result, users receive yield-bearing tokens, which can be used to sell options across the curve and generate better returns while spreading the risk. An algorithm sets each Stronghold strategy’s strike prices and expiration dates to ensure users receive the highest risk-adjusted yield.
DeFi is complex and ever-evolving, and accordingly, it often becomes overwhelming for users to identify the best investment strategies that generate returns while diversifying risks. To that extent, Thetanuts Stronghold lets users avoid the hassles of options strategies by staking their assets directly into DeFi Option Vaults. It works like S&P 500 index trading and comprises customized option vault indexes built by Thetanuts’ researchers, granting users organic returns from selling options that are benchmarked against the major tokens in the ecosystem.
Simplifying DeFi Investments For The Masses
The core goal of the Thetanuts Stronghold Index Vault is to solve existing problems of the DeFi ecosystem, including concentrated risk, liquidity lock, and choice paralysis. Since there are many vaults on the same blockchain, investors often find it challenging to decide which strategy best fits their needs. Besides, once users enter a vault position on any protocol, the liquidity gets collateralized, and users can only withdraw their funds after the vault expires.
However, with Thetanuts Stronghold, investors will benefit from more straightforward investment choices and enjoy the option of withdrawing their funds at any time. At the same time, the underlying smart contracts and algorithms will minimize investor risks through diversification. Additionally, all Stronghold vaults are backed by options vaults with more than one strike, more than one tenor, and more than one asset. These vaults are combined into a single Stronghold token, which protects users from excessive drawdowns in the vault when the market is down. On top of that, the multi-strike, multi-tenor strategy protects users from temporary market downturns via mean reversion.
Finally, investors will also access an improved user interface being optimized with two new updates. To simplify the process for users, all Stronghold products are consolidated into a unified panel, empowering users to find all available yield generation assets easily, interact with the available indexes, and learn more about the blockchain hosting the assets. On the other hand, yield generation becomes as easy as a swap, as users can simply swap the underlying asset for Stronghold and vice versa with one click and enter or leave a position at any time.
