Derivatives based Yield

Coming in Q1 2023

In traditional finance (TradFi), derivatives markets play a critical role in the broader financial ecosystem, often surpassing spot markets in terms of volume and significance. Derivatives such as perpetual contracts and options are vital instruments for risk management, speculation, and price discovery.

Both perpetuals and options contribute to the overall market depth and efficiency. They allow investors to react swiftly to market news and economic events, leading to more efficient price discovery in the spot markets. Furthermore, the leverage and hedging capabilities they provide help firms and individuals manage their exposure to various financial risks, from currency fluctuations to changes in interest rates.

The trajectory is no different when you look at Crypto.

[add information about CEX and DEX Derivatives market data]

We are in the process of integrating with several Derivatives protocols to launch our structured products in Q1 2024:

  • GMX

  • HMX

  • MUX

  • Lyra

  • Aevo

  • Deribit

Rumi Finance and its Strategy providers are working on the following structured products:

  • Perpetual Protocols Market Making: Leveraged Delta Neutral Vaults on Perpetual Protocols (GMX, HMX, MUX)

  • Option PCM (Premium Collecting Machine): Zero Days To expiration option selling strategies, structured along a CPPI portfolio allocation. CPPI stands for Constant Proportion Portfolio Insurance, it means that a max % of the Vault allocation can be spent on the riskier investment (PCM), while the rest is allocated to a safe investment (for example, single asset lending on our Prime Module). The vault is adjusted regularly to reflect the gains and expansion of the portfolio TVL.

  • Buy the dip BTC and ETH: Automated Dual investment option vaults that use zero days to expiration contracts to buy BTC and ETH cheap while generating yield. It is also called the Flywheel Option Strategy.

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