Dual Investment — AntiMatter’s First Structured Product
The time has finally come. We are ready to release our first structured product of many to come — Dual Investment.
This article’s purpose is to give a summary on everything you need to know and prepare you for what’s to come.
To encourage our users to recommend and share our product with others we implemented a simple referral system.
- Users are charged a 3% fee on their profit, when claiming their returns.
- If the receiving account is a referred user, the referrer gets ~17% of the fee as a reward and the remaining 2.5% stay on the platform.
To celebrate the launch of Antimatter Dual Investment we are running an Incentive Event.
Our first users will receive a bonus 25 $MATTER per Subscription Ticket. This reward is accumulative and not limited per user. Rewards have to be manually claimed at Antimatter DAO on the Ethereum Network(!) after claiming of the returns.
This event will run for an unspecified time, depending on demand of the products.
Product Summary — Everything You Need to Know
- Underlying Asset: The asset that the reference price and strike price are referring to.
- Deposit Currency: The asset that you are depositing into AntiMatter Dual Investment.
- Alternate Currency: The asset that your deposit currency will be converted into if the product is exercised.
- Reference Price: The current price of the underlying asset.
- Settlement Price: The current price of the underlying asset at 08:30 UTC on the delivery date. This price is then compared to the strike price to determine if the product should be exercised.
- Delivery Date: The date when the price of the underlying is checked against the strike price.
- Strike Price: The price level that determines whether the deposit currency will be converted or not. The strike price is checked against the settlement price to determine the result. The strike price is used as the conversion rate if the product is exercised.
- APY (Annual Percentage Yield): Each AntiMatter Dual Investment product has an associated APY. The APY of each product fluctuates over time, but your personal APY will be locked in once you subscribe to the product.
What is Dual Investment ?
The essence of Dual Investment is a Covered Option. To put it simple, Dual Investment gives traders the option to sell options while earning a high interest rate. The option will be settled on the delivery date with yields in either the token (such as BTC) or a stablecoin (such as USDT).
Antimatter Dual Investment supports two cryptocurrencies in its initial stage: USDT and BTC, and is deployed on Binance Smart Chain for lower gas fees and better user experience.
How does it work?
There are two kinds of Antimatter Dual Investments that you can invest in. You deposit BTC in the Upward Exercise products, while the Downward Exercise products accept USDT deposits.
When subscribing, the user can choose between different products varying in the following parameters: Strike Price, APY and Delivery Date. Generally
(1) Upward Exercise: If the Settlement Price is higher than the Strike Price, then the product will be “exercised”.
- Settlement Price ≥ Strike Price, then exercised;
- Settlement Price < Strike Price, then it will not be exercised.
(2) Downward Exercise: If the Settlement Price is below the Strike Price, then the product will be “exercised”.
- Settlement Price ≤ Strike Price, the product is exercised;
- Settlement Price > Strike Price, the product is not exercised.
Regardless of the Underlying Asset, if the product is not exercised, the subscriber will receive a return on their investment in the form of the Deposit Currency they invested. If the product is exercised at Delivery Date, the return is converted to the Alternate Currency (Currently USDT for Upward Exercise and BTC for Downward Exercise).
Let’s say you have 1 BTC and the current BTC reference spot price is $56,964. You want to subscribe to the top Up-and-Exercised Dual Investment product. The strike price is set to $58,000 with a 62.65% APY.
You type purchase the amount with 1 BTC as the underlying asset. On the Delivery Date (say 7 days later), one of two things will happen:
1. If the BTC final settlement price is above or equal to $58,000, your 1 BTC is paid out at $58,000 plus the extra interest. You now have $58,696 USDT.
If the BTC final settlement price is below $58,000, you’ll get your 1 BTC back plus interest worth 0.012 BTC. You now have 1.012 BTC.
We will be adding additional features to Dual Investment including:
- Launching on other chains like Ethereum, Fantom and LUNA
- More Underlying Assets, e.g. ETH, LUNA
- More Deposit Currencies, e.g. other stablecoins, ETH, LUNA
- Lower minimum investment amount
We look forward to your feedback! If you have any questions or problems, please reach out to our Telegram for help.