The Pods team recently announced the mainnet launch of its third strategy on Pods Yield: FUD Vault, which now complements ETHphoria and stETHvv.
FUD Vault provides users with a way to profit from market declines by providing a mechanism to hedge against significant ETH price declines while preserving deposited capital.
Who is this product for?
The FUD Vault is designed for individuals who have uncertainty about the future performance of ETH and want to find a way to potentially make profits even when the market is trending downward.
By depositing funds into the FUD Vault, users can benefit from a special strategy aimed at mitigating the risks associated with a falling market.
So, if you feel uncertain or skeptical about the future direction of ETH and want a strategy that allows for potential profits during market declines, the FUD Vault could be a suitable option.
Product values
The FUD Vault offers its users several important values:
- Simplified strategy: By consolidating a single strategy into a token, the FUD Vault improves both DeFi composability and user convenience. Users can easily manage their deposits by transferring them between addresses, using them as collateral for other protocols, and effortlessly verifying their holdings within a given strategy. The goal is to streamline the user experience and provide a seamless interface for interacting with the vault.
- Access to complex strategies: With just one click, users gain access to complex strategies in the FUD Vault. These strategies are designed to optimize returns and navigate the complexity 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 extensive knowledge or expertise.
- Flexible payout: Users can withdraw their funds from the FUD vault at any time after depositing. 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 representation of actual historical returns. This transparency allows users to assess the vault's performance and make informed decisions about their investments. By presenting accurate and up-to-date information, the vault aims to build trust and confidence among its users.
How FUD Vault works
When you deposit USDC, the vault immediately invests in Aave. It then uses all the loan yield generated by Aave to buy ETH put options. These put options have a delta of 0.03-0.12 and a one-week expiry.
Put simply, the put options act as a kind of insurance against a significant drop in the price of ETH. If the price of ETH drops by more than 10% within a week, the put options will be exercised and the resulting profits will be distributed to the FUD Vault depositors.
Summary
The FUD Vault offers a user-friendly experience, providing convenient deposit management, access to complex strategies, flexible withdrawal options, and transparent historical return information.
These values ensure that users can easily navigate the vault, make informed decisions, and take advantage of the platform's offerings.
About Pods:
Pods Create structured products for crypto assets that are easy to use and seamless. Co-founder Rafaella Baraldo, Robson Silva, and Guilherme Guimarães, the team has developed some of the most innovative and secure tools in the DeFi space. The success of the products, security audits and branding efforts have set a new standard for building DeFi methods in this fast-growing sector. Security audits conducted by OpenZeppelin further demonstrate the commitment to security and reliability. Pods remains focused on infrastructure and serving professional clients and investors looking to diversify their portfolios.
contracts
The vault has been audited four times by leading auditing firms, including OpenZeppelin and ABDK. Audit reports are available at https://github.com/pods-finance/yield-contracts/tree/main/audits
The open source contracts can be viewed at https://github.com/pods-finance/yield-contracts
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