The Gold Rush product offers a trifecta of attractive return, market exposure and protection from losses.
- The decentralized derivatives protocol unveiled a high-yield structured product called Gold Rush last week.
- The basket options strategy involves Tether’s gold-backed token, XAUT, and ether as underlying assets and a safety component that protects users from a 30% drop in the tokens’ prices.
Decentralized finance (DeFi) projects are continuing to develop structured products, which offer decent returns, market exposure and protection from losses and were previously available only to institutional investors in traditional markets.
Last week, derivatives protocol Cega unveiled Gold Rush, a basket options strategy involving the Ethereum blockchain’s ether (ETH) token and Tether’s gold-backed {{XAUT}} as underlying assets alongside a safety component that protects users’ capital from a 30% drop in the assets’ prices.
The product offers an annualized percentage yield of up to 83% to investors who stake ETH, Lido’s staked ether (stETH), wrapped bitcoin (wBTC), or stablecoin USDC in the option strategy vault, Cega said. The yield is paid out in the form of the coins staked, so, ETH stakers receive ETH in yield, providing an asymmetric upside in a bullish market.
The Gold Rush vault went live on March 26. Since then, users have deposited crypto assets worth $2.74 million in the strategy.
“Users in DeFi want to stake native assets like ETH or liquid staking tokens like stETH, but don’t want to lose the asymmetric upside on those assets. Users also want safer, higher-yielding opportunities without significant risk to their principal. The new offering, Gold Rush, achieves both of these goals,” Cega told CoinDesk.
