The Different type of Dual Investment users
Dual Investment vaults are flexible and designed to meet the needs of a diverse range of users.
Whether you’re an aggressive yield seeker, a defensive investor, or someone looking to hedge or speculate, Dual Investment Vaults provide versatile opportunities to match your needs. With options for both high-risk and low-risk profiles, you can optimize your on-chain trading and yield generation in a secure and decentralized manner.
Here are some examples of the different types of users who can benefit from these vaults and how they align with various investment goals.
Aggressive Active Yield Seekers
For those chasing high returns in short cycles, aggressive yield seekers usually focus on vaults offering the highest yields.
More often than not, these vaults have short expirations and linked prices close to the market price, allowing users to maximize their yield in quick, strategic cycles.
As each vault expires, they reinvest these returns into new high-yield vaults to align with their updated market view and continuously capture yield.
Steps:
Identify high-yield vaults that matches your market outlook.
Earn yields in short cycles, reinvest, or cash out as needed.
Benefits:
Quick returns that allow for rapid reinvestment and compounding.
Earn yields even if the market doesn’t reach your linked price.
Defensive Passive Yield Seekers
For a hands-off approach, passive yield seekers usually opt for longer-term vaults for stable and consistent growth.
Select a “Buy Low” or “Sell High” strategy with a linked price that fits your comfort level. Let your yields accumulate over time, reinvesting earnings as vaults expire to build compounded yields without active monitoring.
Steps:
Pick longer-term vaults for steady growth.
Choose your strategy, invest, and let it run.
Reinvest yields to maximize compounded returns.
Benefits:
Earn yields without active management.
Reliable, consistent returns that grow over time through compounding.
Stablecoin Owners Seeking to Buy Low into Asset X
For users looking to buy Asset X with their stablecoins, they typically invest in a “Buy Low” vault targeting Asset X. Set a linked price where you’d like to acquire Asset X, and if the market hits your target, you’ll receive Asset X plus yield. If the price doesn’t reach your target, you keep your stablecoins plus the yield, making your funds productive and capital efficient.
Steps:
Select a “Buy Low” vault targeting ETH.
Set your linked price and vault duration.
If the price of Asset X drops, you will automatically buy Asset X or keep your stablecoins plus yield if it doesn’t.
Benefits:
Earn yields on stablecoins while waiting to buy Asset X at your desired price.
Keep trying if the linked price isn’t hit, while continuing to earn yield.
Owners of Asset X seeking to Sell High into Stablecoins
For Asset X holders looking to sell at a higher price, a “Sell High” vault is ideal. Set a linked price at which you’d be comfortable selling Asset X. If Asset X reaches your linked price, it will convert to stablecoins plus yield. If the linked price isn’t met, you retain your Asset X plus the yield earned.
Steps:
Choose a “Sell High” vault targeting stablecoins.
Set your linked price and vault duration.
Earn stablecoins plus yield if the market rises, or retain Asset X plus yield if it doesn’t.
Benefits:
Earn yield while holding ETH.
Opportunity to sell high and still earn yield even if the price doesn’t reach your target.
Speculative Users Betting on Price Movements
For those who enjoy high-risk, short-term strategies, speculative users can subscribe to vaults with short expiration dates. Choose a “Buy Low” or “Sell High” strategy based on your prediction. If your view is correct, you earn high yields; if it’s not, you still get swapped tokens plus yield, giving you another chance to reinvest.
Steps:
Select a short-term vault for rapid speculation.
Choose “Buy Low” or “Sell High” based on your prediction.
Earn high yields if the market aligns or swapped tokens plus yield if it doesn’t.
Benefits:
Quick returns from short-term bets.
Guaranteed yields even if the market moves against your prediction.
Users Looking to Hedge Their Assets
For users aiming to protect their holdings, creating a vault with specific conditions can help manage risk in volatile markets. For instance, you can create a “Buy Low” vault targeting stablecoins, setting a linked price and expiration that aligns with your asset protection goals.
Example: If you hold Asset X and want to safeguard its value, create a “Buy Low” vault targeting USDC. If the price drops to your target, Asset X converts to USDC, locking in its value. If the price doesn’t reach your target, you retain Asset X while still earning yields.
Steps:
Create a “Buy Low” vault with a linked price and expiration based on your protection goals.
If the price hits your target, your Asset X converts to stablecoins, reducing volatility exposure.
Benefits:
Automate asset protection without active trading.
Peace of mind knowing your assets are secured based on pre-defined terms.
Last updated