Earn superior yield on the premier exotic derivatives protocol

Cega is the first exotic structured products protocol built on Solana. The team is building the next evolution in DeFi derivatives by bringing exotic derivative capabilities to crypto.

Cega’s product is a decentralized platform, that allows to trade exotic derivatives. Exotic derivatives combine basic options (e.g. call/put) with advanced options characteristics to create packaged offerings for investors which generate superior yield and provide downside protection.

Recently Cega has raised $4.3 million by Dragonfly Capital Partners with participation of Pantera Capital, Coinbase Ventures, Alameda Research, Solana Ventures and others.

Cega’s First Exotic Product: Fixed Coupon Note (FCN)

Our first exotic product offering is the fixed coupon note (explained below):

Product Structure

The fixed coupon note (FCN) is a packaged exotic derivative offering comprised of:

2 or 3 Short Puts to generate yield for investors
1 Long Call to incentivize Knock-Out events
Knock-In (KI) Barrier to provide downside protection against market downturns
Knock-Out (KO) Barrier to improve investor liquidity and increase compounding of yield when markets rally

The payout of Cega’s FCN offering is illustrated below:

Benefits for Investors

Superior Yield, Fixed — High fixed daily yield (~40% to 200%+ APY) that is promised upfront when users stake their tokens
Downside Protection — Users are safer investing in FCNs than in basic options strategies because FCNs provide protection against market downturns. Unless one of the crypto assets underlying the fixed coupon note falls more than 50% and knocks in, the capital staked by users stays safe
Compounded Returns — At the end of the term of the note (e.g. 3 months) or when the structure knocks out, the initial capital staked + yield accrued will be reinvested into a new another structure, thus compounding returns

Benefits for Market Makers

Market makers who are willing to provide liquidity for the other-side positions of these products benefit from:

Discounted Hedge — KI Barriers allow for discounted protection of a basket of underlying cryptos in a market markers portfolio
Proprietary Gains — Hedging these structures will allow for proprietary gains due to the delta and vega positions

How It Works

Users connect their wallet in the Cega web app and stake on our platform through a simple 1-click UI/UX to make exotic derivatives simple for anyone. Yields will start being paid to users automatically and will perpetually reinvest (both principal and yield) to compound returns on investment. Users can unstake at any time.

Governance

We want our community of investors, traders, quants, and statisticians to influence how the protocol grows. This means we want to develop the following capabilities for the community through decentralized governance:

Vote on future product offerings — we want the $CEGA token holders to influence the baskets that we create, as well as the risk tolerance
Impact on the statistical models — we want the community to learn about more exotic derivatives and influence the pricing capabilities that Cega offers
Education — we want the defi community to understand options trading in the most realistic way. Cega’s early community will consist of experts and fans of the defi derivatives field, and we look to onboard users further into understanding ways to flexibly represent views of the market using derivative instruments

Stay in touch with the Cega community

Discord: https://discord.gg/gB9grkRW4F
Twitter: https://twitter.com/cega_fi
Website: https://cega.fi