Uniquely Designed to Grow BTC and ETH Stacks with Greater Yield Compared to Traditional Call and Put Options
TORONTO, Aug. 3, 2022 /PRNewswire/ — InvestDEFY, a sophisticated structured products company making crypto investing simple, today announced the launch of STACC, a dynamic weekly yield enhancement program for BTC and ETH. Without employing leverage, STACC enables the growth of an investor’s stack of BTC and/or ETH, boasting greater annual percentage yields (APYs) than traditional call and put writing strategies.
Driven by InvestDEFY’s Digital Asset Trading Automation (D.A.T.A.) platform and guided by its DORA Predictive Explorer analytics platform, the STACC program is optimized to generate attractive APYs each week while allowing for upside participation on the underlying asset. STACC is also structured to allow all of the program’s collateral and assets to be safely held with its custodian, eliminating the need to transfer assets to any counterparties, reducing exposure to undue risk, and further bolstering the safety and protection of assets.
"STACC harnesses our deep expertise in artificial intelligence and multi-factor model design to create a thoughtful alternative to yield farming," said James Niosi, CEO and co-founder, InvestDEFY. "We are therefore able to offer very attractive APYs while providing upside participation on the underlying asset."
Using a weekly signal produced by DORA, STACC expresses its view by selling one-week options using calls, puts, or a combination of both. Option structures are then automatically deployed into the STACC trading system, which prices the option(s) and routes for execution into the best market, controlling for liquidity, price discovery, and slippage. Yield in the form of premiums is reinvested each week, compounding over the lifetime of the investment.
"In light of recent events with stablecoins and the inherent risks of yield farming, the timing felt right to launch a program that does not have exposure to the same type of lock up and counterparty risks as traditional yield farming," continued Niosi. "While we applaud the technical design of current DeFi option vaults, our hybrid solution sources both high-touch OTC counterparties as well as low-touch centralized marketplaces, improving price and liquidity discovery."
To reinforce InvestDEFY’s thoughtful and experienced approach to counterparty and credit risk management, program collateral and assets are not rehypothecated under any circumstance.
InvestDEFY recently announced the strong performance of its weekly market neutral yield harvest program, SYGMA, amidst the volatile crypto market. Boasting greater returns and less volatility compared to BTC and ETH, SYGMA BTC generated an 8.52% return with an 8.63 volatility, and SYGMA ETH returned -4.01% with a volatility of 14.6 from January 21, 2022 to July 1, 2022. During the same period, BTC dropped -50% with a volatility of 72, and ETH fell -62% with a volatility of 90.
To learn more about STACC, visit Northland Capital Partners.
With $400M in structured products issued since December 27, 2021, InvestDEFY is driving the evolution of crypto investing. A merger of TradFi, Crypto, and DeFi, InvestDEFY has deep expertise in quantitative trading, digital assets, technology, AI, risk management, derivatives, global equities, regulatory compliance, and investment banking. InvestDEFY engineers unique, sophisticated structured products powered by its proprietary technology platform featuring big data and AI.
Members of the InvestDEFY leadership team have designed, launched, and issued over $3.0B of structured products in the last three years, employing predictive-driven trading at an institutional scale in amounts greater than $32B in risk capital across FX derivatives in the last four years.
To learn more about InvestDEFY, visit www.investdefy.com.