Structured product: Participation in the Bitcoin movements with guaranteed capital preservation. Research.

Profitability up to 21.9% / 39% annual, depending on a strategy

The product idea:

The structured product is focused on effective utilization of deposited stable coins in landing(debt) services on Binance Smart Chain, Alpaca Finance, in particular. We offer a short-term renewable strategy for market participants with guaranteed capital preservation and a bitcoin movement rate.

The idea’s core is that most of the funds (around 100%) are being deposited through Venus, Alpaca, etc. To receive a yield there are purchased options for a respective pair and an expected movement direction.

The main factors that may impact the BTC rate in the nearest future:

  1. Legislative uncertainty of crypto industry regulation in terms of infrastructure bill of the US president
  2. Remaining pressure from the Chinese government on all participants of the crypto market
  3. Preparations for the Taproot update
  4. Correlation with the stock market — the stock market correlation is expected on the US and Chinese markets which can significantly impact the BTC rate

Product maintenance

Recommended funds volume: 50 000 BUSD
Term: starting from 10 days
Orders execution for options purchase at the Maker fee is possible by placing an order through Trading desk delta.theta.

There are a few strategies, depending on a chosen movement direction of the BTC price

1. “Growth” rate on BTC/BUSD from the current price (central strike)

Deposit placement of 50 000 BUSD on Venus / Alpacа, the expected income for the period September 28 — October 08 will be: (10 / 365) * 10 = 0.2739% (for the Alpaca protocol as of September 23, 2021).
The yield on the deposit for 10 days is 136 BUSD.

CALL option purchase with a central strike (44 000 for BTC) with expiration on October 08.
Accordingly, the costs will be:

  • 24 BUSD (option purchase price) and 2.5 BUSD (trade fee on delta.thetа).

Thereby, for the received premium from deposited funds 5 contracts can be purchased in the Alpaca protocol.

2. “Decline” rate on BTC/BUSD from the current price (central strike)

Deposit placement of 50 000 BUSD on Venus / Alpacа, the expected return for the period September 28 — October 08 will be: (10 / 365) * 10 = 0.2739% (for the Alpaca protocol as of September 23, 2021).
The yield on the deposit for 10 days is 136 BUSD.

PUT option purchase with a central strike (44 000 for BTC) with expiration on October 08. Accordingly, selling costs:

  • 24 BUSD (option purchase price) and 2.5 BUSD (trade fee on delta.thetа).

Thereby, for the received premium from deposited funds 5 contracts can be purchased in the Alpaca protocol.

Profitability and risks

Expected profitability:

In this strategy, losses are limited only by the premium, which is 136 BUSD. Responsibility for the safety of funds and a guarantee of return of funds is on Venus/Alpaca landing protocols.

3. Participation in growth if the movement is higher than 46 000 BUSD.

In strategy, the deposit is saved and CALL options are purchased with a strike of 46,000 BUSD. With expiration on October 1, the costs will be: 11 BUSD of the premium paid for the option and a fee of 2.5 BUSD on delta.theta. Thereby, 9 contracts can be purchased for 136 BUSD premium.

Expected profitability:

In this strategy, losses are limited only by the premium, which is 136 BUSD. Responsibility for the safety of funds and a guarantee of capital return is on Venus / Alpaca landing protocols.

4. Participation in growth if the movement is lower than 42 000 BUSD.

In this strategy, the deposit is kept and PUT options are purchased with a strike of 42 000 BUSD. With expiration on October 1, the costs will be: 13 BUSD of the premium paid for the option and a fee of 2.5 BUSD on delta.theta.

Thereby, 9 contracts can be purchased for 136 BUSD premium.

Expected profitability:

In this strategy, losses are limited only by the premium, which is 136 BUSD. Responsibility for the safety of funds and a guarantee of capital return is on Venus / Alpaca landing protocols.

Risks:

  1. Liquidity will be sent on Alpaca / Venus protocols
  2. The options purchase has limited risk = option premiums = deposit income

If you have any questions, you can contact us as follows

via Telegramm — @DeltaTheta_Research

via email — Research@deltahteta.tech

The information published on the website, including the results of research, forecasts, estimates regarding financial instruments, on the nature, characteristics of a financial instrument (combination of financial instruments), changes in its (their) value, the results of technical and/or fundamental analysis is not an individual investment recommendation, and financial instruments or transactions mentioned in it may not match your investment profile and investment goals (expectations). It is your task to determine if a financial instrument or transaction meets your interests, investment objectives, investment horizon and risk tolerance level.

DeltaTheta Inc. disclaims any liability for potential losses in case of executing transactions or investing in financial instruments referred to in the information and does not recommend the use of this information as the only source of information when making an investment decision. The information may not be regarded as guarantees or promises of future returns on investments, risk levels, costs, break-even investments. The outcome of past investments does not determine future returns.

Analyses, reviews, news articles of DeltaTheta Inc are internal documents of the company, as well as for the purpose of informing clients. They are not advertisements for securities. Information is based on public sources deemed reliable, but DeltaTheta Inc is not responsible for its accuracy. Investing in securities involves significant risk and decisions about investments should be made by the investor.

To be the first to know about the latest news and events:
Official website: https://deltatheta.tech
Twitter: https://twitter.com/deltatheta_tech
TG NEWS (EN) : https://t.me/DeltathetaNEWS
TG chat (EN): https://t.me/deltatheta
TG NEWS (RU): https://t.me/deltathetanews_ru
TG chat (RU): https://t.me/DeltathetaRU

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P2P options trading platform on Binance Smart Chain, Ethereum

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delta.theta

delta.theta

P2P options trading platform on Binance Smart Chain, Ethereum

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