Yieldfort and DeltaTheta: Strategic Partnership for the Development of the Structured Products Market in DeFi - YieldFort

Yieldfort and DeltaTheta: Strategic Partnership for the Development of the Structured Products Market in DeFi

Yieldfort and DeltaTheta: Strategic Partnership for the Development of the Structured Products Market in DeFi

Yieldfort and DeltaTheta announce a strategic partnership, the goal of which is to offer a new type of product through Yieldfort — products with a fixed income and a guarantee of capital protection, as well as attracting more liquidity to Deltatheta.

Yieldfort is an application through which any client can get a fixed return on their crypto assets. The distinctive features of Yieldfort products are:

  • Clients receive a fixed return that exceeds the Federal Reserve’s rate on the corresponding asset (i.e., Bitcoin and Ethereum).
  • Clients can receive a fixed return and have a 100% guarantee of capital protection relative to the reference price.
  • Participation in products on a weekly basis.

First and foremost, Yieldfort focuses on providing a fixed return. We believe that to transition DeFi to a new level and attract more clients, it is necessary to offer products that will be understood by the majority of clients. In this context, the concept of a fixed return is much more transparent than the variable APY, which changes day by day. The introduction of the concept of fixed return sets a benchmark for us — the Federal Reserve rate, so the fixed return should exceed this benchmark. We assume that the fixed return on Yieldfort instruments will be calculated as the Federal Reserve rate + 25 bps (0.25%).

The second key aspect is the logic of capital protection. If a client opens a product at a reference price of 26,500 USD per BTC, then at the end of the week, the client will receive a fixed income and the difference in BTC between the closing price and the product entry price. Thus, in fiat terms, the client does not lose anything but rather gets income. With this approach, the rate of fixed income will be 100–125 bps (1.0%-1.25%) lower than the Federal Reserve rate.

Accordingly, clients can choose a product with capital protection or without it for two types of assets: Bitcoin and Ethereum. Products are updated every week, and every Friday clients can choose whether to exit the product. If the client decides not to exit the product, it automatically moves on to the next week.

Deltatheta is a decentralized options exchange. Options trading on Deltatheta takes place in a wallet-to-wallet mode. On Deltatheta, you can place market and limit orders, as well as sell and buy options. In fact, Deltatheta represents a decentralized order book with built-in American-type options logic.

During June, Yieldfort plans to update its website, launch a marketing campaign, and complete the final product testing. The strategic partnership will allow each of the products to bring specific value to their clients. For Yieldfort, Deltatheta is a unique partner in the DeFi sphere in terms of options trading, and the company plans to direct part of its flows to Deltatheta. From Deltatheta’s perspective, Yieldfort helps attract more liquidity, increasing the turnover of the DLTA token. In addition, Deltatheta has compiled a list of addresses that were actively trading on the platform before the partnership announcement, which will bring tangible benefits in the 4th quarter of 2023 for these addresses. We also anticipate launching new joint marketing initiatives over the summer.