Thetanuts Finance has announced the launch of its Stronghold index vault to offer decentralized finance (DeFi) market participants non-inflationary return opportunities, better risk management, and more. The team says the Thetanuts Stronghold vaults enable users to stake their assets directly in DeFi Option Vaults and avoid the headaches associated with options strategies.
Thetanuts’ Stronghold Vaults
Thetanuts Finance, a structured decentralized finance protocol that aims to simplify the process of options trading, has launched its Stronghold index vault, a new DeFi solution the team claims is designed to offer users deflationary return opportunities, thoughtful risk management, and a radically simpler user experience.
Per a press release shared with crypto.news, Thetanuts Stronghold Vaults helps users avoid the issues associated with complex options strategies by making it possible for them to stake their assets directly in DeFi Option Vaults.
Specifically, the team has made it clear that the new Stronghold Vaults perform similar functions to the S&P 500 in stock trading, as it brings together customized option vault indexes designed to offer users organic yield generation from option selling, benchmarked against major cryptoassets in the industry.
Stress-Free Yield Generation
Notably, staked digital assets on the Thetanuts Stronghold protocol are automatically deployed into specified covered selling options strategies by smart contracts developed by Thetanuts researchers.
Stelian Balta, CEO of Hyperchain, a Thetanuts investor said:
“I’m excited about Thetanuts Stronghold because it gives users great risk-adjusted returns through selling diversified option selling strategies. Great team! Looking forward to Thetanuts being the future benchmark of yield generation.”
The team says the base yield users generate when they stake their assets on the platform is obtained through the payment of premiums, as opposed to the inflationary token rewards many DeFi protocols offer their users.
“Users receive a yield-bearing token that generates superior returns by selling options across the curve while benefiting from a diversified risk profile. The strike prices and expirations of each Stronghold strategy are algorithmically determined to generate the highest risk-adjusted yield,” the team explains.
Thetanuts Stronghold aims to solve the problems of choice paralysis, liquidity lock, and concentrated risk investors face on competing DeFi protocols by offering them simpler investment choices that allow them to withdraw their liquidity at any time, while risk management is achieved via diversification.
The team says the Stronghold indexes are backed by multi-strike, multi-tenure, multi-asset options vaults aggregated into a single Stronghold token. This way, users are protected from excessive vault drawdowns during bear markets. This system also protects users from temporary market downturns via mean reversion.
For now, Thetanuts Stronghold only offers the USDC Stronghold index vault on multiple blockchains, including Ethereum, BNB Chain, and Avalanche, with launches on the Polygon, Fantom, and other chains coming soon. More assets will also be added in the coming months.
Thetanuts says it recently completed two major updates on its platform to offer users an improved interface that allows them to quickly generate yield, access all its solutions, discover assets to generate yield on, know the exact blockchain their assets are hosted on, and more, from a single simplified panel.
Launched in 2021 by a team of programmers, hedge fund managers, and financial analysts, Thetanuts Finance says its DeFi structured products and customized vaults are the future of yield generation.
In addition to allowing retail investors to generate yield with their assets, the platform also provides treasury management for DAOs.
Thetanuts vaults simplify the process of options trading, making previously complex instruments easy for any investor to access, thereby empowering users to monetize volatility in a risk-adjusted manner.