📈Automated Investment Management
Antimatter introduces Recurring Vault into the Antimatter Ecosystem. It is an DeFi Option Vault (DOV) following the Set-and-Forget principle. Our first vault will be based on our already existing Dual Investment. The vault will have weekly cycles that can be cancelled before the next cycle starts.
To start off our first vault will run two strategies for investors with BTC as underlying asset: BTC Covered Call & BTC Put Selling. The vault algorithmically selects the optimal Strike Price for the BTC call/put options.
BTC Covered Call
In this strategy, the deposited funds are essentially used to subscribe to an upward exercise product. This way the vault earns yield by running a Covered Call (What is a covered call?) strategy that automatically covers BTC on a weekly basis. Earnings are automatically reinvested into the vault, effectively compounding the returns. The deposit currency is BTC.
BTC Put Selling
In this strategy, the deposited funds are used to subscribe to an downward exercise product. This way the vault earns by running a Put Selling (What is put selling?) strategy that automatically protects BTC on a weekly basis. Earnings are automatically reinvested into the vault, effectively compounding the returns. The deposit currency in this case is USDT.
📝Difference to Competition
Competitors like Ribbon Finance mainly run vaults with one strategy, Covered Call or Put Selling. While those kind of vaults work well when market conditions are clear, they are also vunerable to sudden market shifts.
Antimatter’s first Recurring Vault is essentially one big vault which simultaneously runs those two strategies. Which strategy is executed depends on the performance of BTC. The user can choose a starting point for his investment strategy: Deposit BTC for a Covered Call strategy or deposit USDT for a Put Selling strategy.
For a clear understanding it is very important to note that the strategy can change weekly depending on the outcome of the product. In case the option is exercised, the settlement currency is different from the deposited currency and therefore in the next cycle the strategy is changed to Covered Call or Put Selling respectively.
Now if you think you don’t want to reinvest your funds incase the option get exercised, that is not a problem since you are able to redeem your funds before the next cycle starts. This way our vault basically still can be used as single vault with only one strategy.
Antimatter Recurring Vault is an innovative approach to DeFi Option Vaults and one of a kind on the market. Therefore we do not have broad information about performance expectance. We advise users to invest carefully and exercise caution.
There will be weekly performance updates on yield history and we will also display current projected yield for each strategy.
A user guide is already in the making, so stay tuned for that. As we will gradually add more Currencies to Dual Investment they will also be available for Recurring Vault.
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