The team of pods recently announced the mainnet launch of its 3rd strategy on Pods Yield: FUD Vault, which now complements ETHphoria and stETHvv.
FUD Vault allows users to benefit from market downturns by providing a hedging mechanism against significant price declines in ETH while preserving the principal deposited.
Who is this product for?
The FUD Vault is designed for people who are uncertain about the future performance of ETH and want to find a way to potentially profit from it even when the market is trending down.
By depositing funds into the FUD Vault, users can take advantage of a specific strategy that aims to mitigate the risks associated with a market downturn.
Therefore, if you feel uncertain or skeptical about the future performance of ETH and want a strategy that allows for potential profits during market declines, the FUD Vault might be a suitable option.
The FUD Vault offers several key values to its users:
- Simplified strategy: By consolidating a single strategy into a single token, the FUD Vault enhances both DeFi composability and user convenience. Users can easily manage their deposits by moving them between addresses, using them as collateral on other protocols, and effortlessly verifying their holdings under a specific strategy. The goal is to streamline the user experience and provide a seamless interface for interacting with the vault.
- Access to complex strategies: With a single click, users access complex strategies in the FUD Vault. These strategies are designed to optimize returns and navigate the complexities of the market. By offering these strategies in a user-friendly way, the vault allows users to benefit from sophisticated investment approaches without the need for in-depth knowledge or expertise.
- Flexible withdrawal: Users can withdraw their funds from the FUD Vault at any time after the deposit has been processed. This feature ensures that users remain in control of their assets and can access their funds whenever they need them.
- Transparent historical returns: The FUD Vault provides users with a clear display of actual historical returns. This transparency allows users to evaluate the performance of the vault and make informed decisions about their investments. By presenting accurate and up-to-date information, the vault aims to build trust among its users.
How the FUD Vault Works
When you deposit USDC, the vault immediately invests in Aave. Then it uses the entire loan yield generated by Aave to purchase ETH put options. These put options have a delta ranging from 0.03 to 0.12 and a maturity period of one week.
Simply put, put options act as a form of insurance against a significant drop in the price of ETH. If the price of ETH drops by more than 10% within the one-week period, the put options are exercised and the resulting profits are distributed to depositors in the FUD Vault.
The FUD Vault offers a user-friendly experience, offering convenient deposit management, access to complex strategies, flexible withdrawal options, and transparent historical feedback information.
These values ensure that users can easily navigate the vault, make informed decisions, and reap the benefits of the platform’s offerings.
pods create structured products for crypto assets that are easy to use and transparent. Co-founded by Rafaella Baraldo, Robson Silva, and Guilherme Guimarães, the team has developed some of the most innovative and secure tools in DeFi. Product success, security audits, and branding efforts have set a new standard for building DeFi methods in this growing industry. Security audits conducted by OpenZeppelin further demonstrate the commitment to security and reliability. The pods continue to focus on infrastructure and serve professional clients and investors looking to diversify their portfolios.
Open source contracts can be viewed at https://github.com/pods-finance/yield-contracts
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