Cega’s vault token market (VTM) eliminates the protocol’s 27-day lock-up interval, permitting customers to withdraw their USDC deposits when required.
The brand new characteristic is accessible to market makers and yield farmers.
On Tuesday, decentralized exotic-derivatives protocol Cega introduced a brand new characteristic that provides customers extra flexibility in managing their investments and responding to altering market circumstances.
The Vault Token Market (VTM) will increase liquidity, utility and suppleness of customers’ investments, Cega stated in a press launch shared with CoinDesk.
With a complete worth locked (TVL) of over $10 million, Cega is the world’s third-largest decentralized exotic-derivatives protocol. It permits holders of dollar-pegged stablecoin USDC to earn yields whereas bypassing the necessity for energetic administration of positions. Customers deposit USDC into the vaults, which then make use of methods centered round packaged unique derivatives equivalent to fixed-coupon notes and put spreads to generate enticing returns. Vault members obtain Cega vault tokens representing their monetary place within the technique.
Every vault runs the technique for 27 days, starting each Wednesday at 1:00 UTC, simplifying the funding course of. For issuers, nevertheless, which means their USDC is locked into the vault for 27 days, preserving them from accessing their funds. The liquidity barrier limits customers’ capability to react to altering market circumstances and meet monetary wants.
The VTM addresses this subject, permitting customers an early exit.
“With the VTM, customers can exit from their buying and selling positions early, with out ready for 27 days. They’ll exit 100% of their place, or half, or any quantity they select, offering most flexibility,” Cega’s co-founder Winston Zhang stated in an interview.
VTM is open to everybody, together with market makers and yield farmers, permitting market members to purchase and promote the Cega vault tokens within the open market. VTM’s benchmark value characteristic ensures truthful worth for vault tokens and the perfect execution when promoting them or trying to snap up cash at discounted positions.
“VTM opens the door to a variety of strategic use instances, from liquid staking and restaking to collateralized lending/borrowing. Off-ramping is simply step one in creating strong ecosystem alternatives for Cega vault tokens,” the press launch stated.
