Fig
Crypto has a persistent yield problem
On-chain crypto wealth has grown exponentially. There are estimates of $150+ billion crypto assets that continue to stay on-chain searching for yield. As wealth grows, generating income on idle assets is top of mind. Despite various attempts, yield on crypto assets remains low or unsustainable.
Our platform solves this by
- Leveraging options to statically replicate basis trade, hedged beta etc.
- Tokenizing any strategy for qualified purchasers on-chain
- Bridging non-toxic deeply liquid order flow from TradFi to DeFi markets
Strategy 1: Basis trade
Synthetic Dollar Bond
Zero principal-loss yield farm
Ethereum
Underlying asset
11.4% APY
Apr 28 to May 5 '24
Weekly
Period
0.187%
Yield (1 week)
Strategy 2: Hedged beta
Principal Protected Note
Zero principal-loss upside capture
Bitcoin
Underlying asset
24.97% APY
Matures on Sep 27 '24
0.00%
Max loss in 5 months
9.46%
Max profit in 5 months
$60,000
Max loss BTC below
$80,000
Max profit BTC above
Principal Hedged Note
Low principal-loss upside capture
Bitcoin
Underlying asset
112.93% APY
Matures on Sep 27 '24
9.59%
Max loss in 5 months
34.41%
Max profit in 5 months
$60,000
Max loss BTC below
$80,000
Max profit BTC above
Background
Fig develops CORE - Collaterlized Options Replication Engine, the software platform behind Fig Investments, a hedge fund deploying hedged beta strategies to generate yield on over $10M in TVL. Functionally similar to an AMM (Automated Market Maker), CORE sytematically quotes and matches option structures in real time - enabling strategies that leverage liquidty from both on-chain and off-chain venues.
