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Today, Thetanuts Finance announced the launch of the Thetanuts Stronghold index vault, a new trading product that reportedly offers non-inflationary return opportunities, thoughtful risk management, and a radically simpler user experience. Thetanuts Finance is a structured DeFi platform that simplifies the process of options trading.
According to the information provided by the Thetanuts team, Thetanuts Stronghold enables users to avoid the headaches associated with options strategies by staking their assets directly into DeFi Option Vaults. It performs a similar function to the S&P 500 in stock trading, representing customized option vault indexes created by Thetanuts researchers that aim to provide users with organic yield generated from option selling, benchmarked against major ecosystem tokens.
The team states that through the Thetanuts Stronghold protocol, users’ staked assets are automatically deployed into specified covered selling option strategies through the use of smart contracts.
The base yield is obtained via the payment of premiums as opposed to the inflationary token rewards seen in many other DeFi protocols.
Reportedly, users receive a yield-bearing token that generates superior returns by selling options across the curve, while benefiting from a diversified risk profile. The strike prices and expirations of each Stronghold strategy are algorithmically determined to generate the highest risk-adjusted yield.
The protocol aims to solve problems around choice paralysis, liquidity lock, and concentrated risk. With Thetanuts Stronghold, investors benefit from simpler investment choices and are able to withdraw their liquidity at any time, while risk management is achieved by diversification.
The Stronghold indexes are backed by multi-strike, multi tenor, multi-asset options vaults aggregated into a single Stronghold token, protecting users from excessive vault draw-downs in bearish market conditions. In addition, the multi-strike, multi-tenor strategy protects users from temporary market downturns via mean reversion.
The team also says that investors further benefit from an improved user interface courtesy of two major updates. All Thetanuts Stronghold products have been consolidated into a single, simplified panel, allowing users to easily discover assets to generate yield on, interact with the indexes they’re most suited to and understand which blockchain their assets are hosted on.
Meanwhile, yield generation becomes as simple as a swap — simply swap the underlying asset for Stronghold and vice versa with a single click, moving into and out of a position at any time.
Thetanuts Stronghold has launched initially with the USDC Stronghold index vault and is live now on Ethereum, Binance Smart Chain, and Avalanche, with Polygon, Fantom, and other chains launching soon. The team adds that as the product gains traction among DeFi investors over the coming months, Thetanuts will launch other Stronghold indexes for additional major crypto assets.
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