Cega’s Vault Token Market (VTM) eliminates the protocol’s 27-day lock-up interval, permitting customers to withdraw their USDC deposits when wanted.
The brand new characteristic is on the market to market makers and yield farmers.
On Tuesday, decentralized unique derivatives protocol Cega introduced a brand new characteristic that provides customers extra flexibility in managing their investments and responding to altering market circumstances.
The Vault Token Market (VTM) will enhance the liquidity, utility and adaptability of customers’ investments, Cega mentioned in a press launch shared with CoinDesk.
With a complete worth locked (TVL) of over $10 million, Cega is the third largest decentralized unique derivatives protocol on the planet. It permits holders of dollar-pegged stablecoin USDC to earn returns whereas bypassing the necessity for energetic place administration. Customers deposit USDC into the vaults, which then use methods centered on packaged unique derivatives resembling notes with fastened coupons and spreads to generate enticing returns. Vault members obtain Cega Vault tokens that characterize their monetary place within the technique.
Every vault runs the technique for 27 days beginning each Wednesday at 1:00 UTC, simplifying the funding course of. Nevertheless, for issuers, this implies their USDC will probably be locked within the vault for 27 days, stopping them from accessing their funds. The liquidity barrier limits customers’ capacity to answer altering market circumstances and meet monetary wants.
The VTM tackles this downside, permitting customers to exit early.
“The VTM permits customers to exit their buying and selling positions early, with out ready 27 days. They’ll exit 100% of their place, or half, or any quantity they need, offering most flexibility,” mentioned Cega’s co-founder Winston Zhang . in an interview.
VTM is open to everybody, together with market makers and yield farmers, permitting market members to purchase and promote the Cega vault tokens on the open market. VTM’s benchmark worth characteristic ensures honest worth for vault tokens and finest execution when promoting them or trying to find cash at discounted positions.
“VTM opens the door to a variety of strategic use circumstances, from liquid staking and redraws to collateralized lending/lending. Off-ramping is simply step one in creating strong ecosystem alternatives for Cega vault tokens,” the press launch mentioned.