Buy Low and Sell High

There are two types of Dual Investment vaults that users can subscribe to:

1. Buy Low vaults

2. Sell High vaults

Buy Low Vaults

Buy Low vaults allow users to buy asset X at a future price lower than the current market price.

Here are two examples using WETH and USDC in a Buy Low vault:

Example 1: Linked Price Reached

• User subscribes to a WETH Buy Low vault and deposits USDC.

• At the time of the vault’s expiration, If the market price of the WETH is at or below the Linked Price, the USDC that the user deposited will be swapped into WETH.

• The user will receive WETH at the Linked Price plus the yield accrued in WETH.

Example 2: Linked Price Not Reached

• User invests in a WETH Buy Low vault and deposits USDC.

• At the time of the vault’s expiration, If the market price of the WETH is above the Linked Price, the USDC that the user deposited will not be swapped into WETH.

• The user will receive full amount of USDC he deposited plus the yield accrued in the USDC.

Sell High Vaults

Sell High vaults allow users to sell asset X at a future price higher than the current market rate. Here are two examples using WETH and USDC in a Sell High vault:

Example 1: Linked Price Reached

• User subscribes to a WETH Sell High vault and deposits WETH.

• At the time of the vault’s expiration, if the current market price of WETH is at or above the Linked Price, the WETH that the user deposited will be swapped into USDC.

• The user will receive USDC plus the yield accrued in the USDC.

Example 2: Linked Price Not Reached

• User subscribes to a WETH Sell High vault and deposits WETH.

• At the time of the vault’s expiration, if the current market price at time of expiration for the base asset is below the Linked Price, the WETH that the user deposited will not be swapped into USDC.

• The user will receive the full amount of WETH he deposited plus the yield accrued in WETH.

*ProdigyFi uses Chainlink and Pyth Network pricing oracle