An index vault that provides non-inflationary returns and risk management has been launched by the ThetaNuts Finance platform that streamlines the process of options trading. The launch of the ThetaNuts Stronghold index vault was announced today.
By depositing their assets directly into DeFi Option Vaults, Thetanuts Stronghold allows consumers to skip the hassles of options strategies. Thetanuts researchers produced unique option vault indexes to provide users with organic yield generated from option selling, benchmarked against significant ecosystem tokens. This index functions similarly to the S&P 500 in stock trading.
By utilizing smart contracts and the Thetanuts Stronghold protocol, users’ staked assets are automatically allocated to chosen covered selling options strategies. Rather than relying on inflationary token rewards, the base income is derived by paying premiums. People who sign up for this service get an option-selling token that provides them with a higher rate of return and a more balanced risk profile. Each Stronghold strategy’s strike prices and expirations are calculated algorithmically to produce the maximum possible risk-adjusted return.
Hyperchain CEO Stelian Balta, an investor in Thetanuts, stated:
“I am excited about Thetanuts Stronghold because it gives users great risk adjusted returns through selling diversified option selling strategies.” He added, “great team and looking forward to Thetanuts being the future benchmark of yield generation.”
Protocol attempts to address choice paralysis, liquidity lock, and concentrated risk using blockchain technology. When there are numerous put vaults on the same chain, it might be difficult for investors to judge which one is the best. It’s also worth noting that, on other protocols, users’ liquidity is collateralized and may only be withdrawn after the vault expires. Vaults with only one strike of a tenor can go into the black with a single strike.
For investors, the Thetanuts Stronghold allows for easy access to liquidity and risk control through diversification while simplifying the investment options available. There is no risk of excessive vault drawdowns with the Stronghold indexes because they are backed by a pool of multiple strikes, multiple terms, and multiple asset option vaults that have been combined into a single Stronghold token. Mean reversion is an additional layer of protection for investors using the multi-strike, multi-tenor approach.
Two important improvements have improved the user interface even more for investors. In order to make it easier for customers to choose assets to create yield, connect with the indices they’re best suited for, and understand which blockchain their assets are located on, Thetanuts Stronghold has unified all of its products under a single, simpler interface. The underlying asset can be swapped for Stronghold or vice versa with one click, making it easy to go into and out of a position.
Thetanuts Stronghold is now live on Ethereum, Binance Smart Chain, and Avalanche, with Polygon, Fantom, and other chains launching soon. It was initially launched with the USDC Stronghold index vault. Thetanuts plans to introduce additional Stronghold indexes for significant cryptocurrencies as the product gets momentum among DeFi clients over the coming months.
