Introducing: Antimatter Sharkfin
It’s time for another decentralized structured product! We are introducing Antimatter Sharkfin — A principal protected product, where users subscribe using the required currency and earn varying yield based on a specified price range of the underlying asset. The product runs on a weekly basis and redemption is only possible at maturity.
In simpler words: You deposit a currency and earn yield on it, if the asset stays in a price range ➡ more %APR, if it doesn’t ➡ less %APR.
In TradFi sharkfin options are already an established structured product on various underlying assets. Antimatter is determined to bring traditional derivatives onchain, while simultaneously innovating the space.
Antimatter Sharkfin is the decentralized version of the traditional sharkfin product and will be starting out with $BTC as first underlying asset. Users are provided with attractive APR rates, while keeping a low risk profile and keeping their principal protected.
How does it work?
A sharkfin product has two parameters that change every week: Price range and APR range. They are adjusted to provide an attractive APR, but also low risk. Below an example with $BTC as underlying asset.
Price range: $38500-$42500, APR range: 3-16%
At maturity there are two outcomes:
1. $BTC price was always in the price range:
Annualised Percentage Return (APR) = 3.00%+(settlement price at maturity-38500)/(42500–38500)* (16.00%-3.00%)
return = principal * APR/365 * 7 (investment term)
2. $BTC price was atleast once below $38500 or above $42500:
return = principal * 3.00/365 * 7 (investment term)
So obviously the objective is to stay within the price range, the higher the settlement price the higher the APR. Nevertheless, you earn a minimum APR even with the second outcome.
Antimatter Sharkfin is principal protected, meaning that you are guaranteed a minimum return equal or more than the initial investment. There is no such concept of liquidation or margin calls. As the money is handled through a smart contract, usual smart contract risks apply. Furthermore, this product is released in Beta.
Antimatter is a hub for decentralized on-chain financial products, such as DeFi derivatives and financial NFTs. Being community driven, innovative and simple forms the core of Antimatter.