Explore Dual Investment Vaults

This section presents a few common approaches and methods on how users can make use of the Dual Investment vaults.

Please note that this guide is made for educational purposes only and none of them should be considered financial advice.

1. Optimise for Yield

Yield farmers focused on maximizing returns can subscribe to vaults where they anticipate the linked price will not be reached.

Here are the two simple example:

• Increase WETH holdings: User A deposits WETH into a sell-high vault, anticipating that the linked price will not be reached by the vault’s expiration date. If the market price is below the linked price at expiry, the Subscribers will get WETH principal plus interest in WETH.

• Increase USDC holdings: User A deposits USDC into a Buy-Low vault, anticipating that the linked price will not be reached by the vault’s expiration date. If the market price is above the linked price at expiry, the Subscriber will get USDC principal plus interest in USDC.

2. Build a position

Users aiming to build a market position, whether by buying or selling an asset, can utilize Dual Investment vaults to earn high yields on their deposits while waiting for their desired linked price to be achieved.

• Capital efficiency: Instead of waiting on your linked price before you click buy, users can now subscribe to a vault, and earn yields at the same time, maximizing the capital efficiency of your capital.

• Build multiple positions at once: Users can also choose to subscribe to several different vaults with different linked prices and expiry date & optimise their strategy accordingly, all while earning yields on every single vault that the user subscribes to.

3. Arbitrage

ProdigyFi's "Buy Low" and "Sell High" vaults could present unique opportunities for price and premium discrepancies compared to other trading platforms.

By carefully analyzing the differences between the vaults' Linked Prices and current market prices, users can create or subscribe to vaults that offer lucrative arbitrage opportunities—all without the complexity, high fees, and limitations typically associated with conventional options markets.

Users gain access to the flexibility of setting their own parameters, such as the linked price and expiration while benefiting from decentralized, transparent, and low-cost trades. This not only enhances market efficiency but also provides opportunities for guaranteed profits through arbitrage.

4. Hedging: Asset protection

Dual Investment vaults can be an effective tool for managing risk in volatile markets. By setting specific conditions, such as a linked price and expiration date, users can align their vault strategy with their asset protection goals.

This approach allows users to safeguard their holdings from market swings while earning yields, offering a flexible and automated way to protect assets without constant monitoring or active trading.