SINGAPORE–(THETECHMUSK=TTM)–Cega Finance, one of the leading derivatives protocols in DeFi, announced today that it has launched on Ethereum Mainnet. Cega is also thrilled to announce the launch of Leveraged Options Vaults (“LOVs”), a novel options strategy which represents innovation in DeFi primitives, as well as the launch of trading firm Tras Mobian.
Ethereum Mainnet Launch
Cega has launched on Ethereum Mainnet which brings its innovative, exotic options structured product vaults to the largest L1 blockchain.
Cega builds structured product vaults that allow investors to earn safer yields during volatile market environments while providing strong protection against severe market movements. Exotic options differ from vanilla options because they add customized, non-standard features that deliver unique payoffs for investors such as increased yield and principal protection. For example, investors can stake USDC in Cega to trade an exotic options strategy such as “I will earn 12% APY if BTC or ETH do not decrease more than 50% in the next 27 days”.
On Ethereum Mainnet, Cega can be easily accessed by leading wallet service providers including Metamask, Coinbase Wallet, and WalletConnect which enables Fireblocks and Gnosis Safe users to stake with Cega.
For new users making their first deposit, staking can be done in three clicks. Users access Cega through its web application at https://app.cega.fi/. From there, users need to connect their Ethereum wallet, choose an options vault strategy, and deposit USDC. Cega offers a variety of vault options strategies that cater to different investment goals and risk appetites, with a range of crypto underlying assets (e.g. ETH, BTC, SOL, and AVAX).
Cega’s smart contracts on Ethereum Mainnet have been double audited to eliminate security attack vectors that could compromise user funds and to ensure code security. Cega audits were performed by Ottersec and Zellic, top security auditors in the space formed by former winners of global hacking competitions. In both audit analyses and reports, no critical vulnerabilities were identified and all code security recommendations were implemented to further strengthen the codebase.
Leveraged Option Vaults
Cega is launching a novel leveraged options vault (“LOV”) strategy that delivers up to 5x higher yields ranging from 20% APY to 109% APY. This product development was driven by strong feedback from the community who frequently requested additional strategies to earn higher APY. LOVs are currently slated to launch within Q2.
The Cega team is committed to pushing the boundaries of DeFi innovation. The LOV is an elegant solution that enables leveraged yields without the need for additional collateralization. Instead, LOVs use an options structured product involving a put spread to create a new DeFi primitive. Unlike conventional leveraged products, the LOV does not require additional liquidity accessed through redemptions of user-funded margins or overcollateralization, which solves the issue of liquidity fragmentation and scalability of leveraged products.
Cega also remains committed to delivering real yields to users. This means that the LOV strategies’ yields are sourced from actual options premiums, not token emissions. Yields are paid in USDC and there is no impermanent loss risk for users.
The development of LOVs is already underway on Ethereum, and audits of the smart contract codebase are in progress. The following table indicates the types of LOV offerings and corresponding yields that users can expect:
|LOV Product Name
(2x to 5x leverage range)
|Gotta Go Fast
|21.0% to 30% APY
|BTC, ETH, SOL
|25.4% to 47% APY
|ETH, SOL, AVAX
|39.2% to 109% APY
|APY quoted as of 3/24/2023
Cega has also launched a trading firm, Tras Mobian. As Cega has grown rapidly to become a leading derivatives protocol in DeFi, there has been increasing demand for new features and product R&D. In the past, Cega has offloaded all positions to external market makers. However, the Cega team possesses one of the highest levels of knowledge and capabilities in exotic derivatives trading in the market, with a combined experience of 35+ years and having managed over $10 billion trading per year. Therefore, a small team at Cega has spun off to launch a market maker called Tras Mobian.
Tras Mobian has four trading mandates:
- Providing competitive Cega product liquidity alongside other market makers.
- Conducting research and development for new products and providing liquidity for other derivative protocols.
- Providing operational flexibility for Cega users, such as bespoke positions.
- Pursuing arbitrage opportunities in the market.
In order to focus on transparency, Tras Mobian acts independently to Cega and its auctions. Cega has also created risk management best practices including the verification of Tras Mobian’s balance sheet health by a third party, audits of all flow-of-funds via a custodian, and having a third party custodian as a multisig signer.
With Tras Mobian, Cega products will see a competitive market price without front running, as well as accrue additional value to future Cega token holders.
For those interested in learning more about Tras Mobian, please check out http://trasmobian.xyz
Future of Cega
Cega is thrilled to be at the forefront of building the future of DeFi by expanding the derivatives market through innovative products, and now trading. Cega is committed to pushing the boundaries of what is possible in the world of DeFi and to empower users to take control of their financial futures. Its mission is to be the #1 provider of DeFi derivatives and also to pioneer new ways to bring greater transparency, accessibility, and opportunities into DeFi. Cega encourages everyone to join its exciting journey to create a more inclusive and decentralized financial system.