Thread by @cyrilXBT

Ready to start earning from trading even in bad market conditions?

@0xpolysynth has an all-weather solution that #degens will love. More on this innovative project in this thread... 🧵

#Polysynth @0xPolysynth

This thread will cover but not be excluded to the following scope:

1/ What is #Polysynth?
2/ Structured Products ( FCN )
3/ Why invest in FCNs?
4/ My closing thoughts

1️⃣ Polysynth protocol is a Defi Options Vault (DOV) protocol powered by #Ethereum

Can you imagine making 30%+ APY on your stablecoins? You read that right....

#Polysynth's primary goal is to help DeFi investors bypass the perceived complications of options trading.

Polysynth is all about #RealYield - you get what you see. You invest in stablecoins, you get returns in stablecoins.

No projected yield in native tokens...

How does it do it? Through 'DeFi Option Vaults' aka DOVs.

- You simply stake your assets in their vaults.

- They deploy the assets into options strategies.

#Polysynth comes with many benefits, let's look at what advantages it comes with

• Auto-compound your wealth in all market conditions

• 100% on-chain, non-custodial yield generation

• Earn yields in a moderately bullish or sluggish market with Covered Call DOV

• Earn yields with Cash-Covered Put when you are neutral about the underlying

• Get predictable fixed yield with Fixed Coupon Note (FCN) DOVs

This makes #Polysynth users profitable under all conditions

2️⃣ #Polysynth is bringing the best of #TradFi to #DeFi through: • Covered Calls • Cash-Covered Puts • Fixed Coupon Notes (FCN)

Now, let's focus on the newest #StructuredProduct coming to #ethereum... Fixed Coupon Note (FCN) Fixed Coupon Notes (FCNs) aim to provide higher returns than bonds with lower risks compared to equities. It's the best of both worlds. 🔥

#Polysynth's FCN's are structured products with both equity and bond-like characteristics.

Whereby, investors earn high daily yield payments on their deposited capital until the FCN expires/matures.

At expiry, the initial deposit is returned to investors in full.

The key working of the FCN lies on two conditions:

A Knock-in (KI) barrier level of 50% or 90% A Knock-out (KO) barrier of 130%

Let's say there is a $1000 initial investment in FCN vault - 30-day investment duration

- 80% APY (Compounded Annual Yield) = 60.24% APR (Non-Compounding Annual Yield) = 5.02% yield every month (60.24% / 12 months) = 0.16% yield every day (5.02% / 30 days) = $1.6 yield per day (0.167% * $1000 deposit)

The payoff for a #polysynth investor will be calculated as follows:

Daily yield × 30 days = Yeild
So, $1.674.20 × 30 = $50.1126 yield

Total payoff = principal + 30 days yield
= $1000 + $50.1126
= $1050.1126

• ROI = $1050.1126/$1000 = 5.0112.6% yield in 30 days.

3️⃣ Looking at what the #polysynth's fixed coupon note seeks to accomplish, it is safe to say a Potential Benefit of an FCN could be;

1. A daily fixed income stream: FCN can be used regularly to add several percentage points of fixed cash income.

Regardless of whether the FCN gets Knocked-Out or Knocked-In, you will continue earning daily fixed coupons until that point.

And if the FCN expires without getting exercise, you earn a high daily fixed cash yield for the entire 30 days.

4️⃣ #Polysynth aims to cut out all of the complex strategies and give users a chance to trade in options with a single click.

The teams vision is to see that more people, with or without trading knowledge are, are able to take part in trades to earn real yield.

The team is working hard to bring innovative DEFi products to the investor community of both web2 and web3. Check out the innovative FCN product: polysynth.com/trade/options/…

5️⃣ My closing thoughts:

The difference I see between most Defi yield is most of them pay you with worthless tokens however @0xPolysynth provides you with the opportunity to put your stables into use while earning in stables.

IMO this brings real value to the bear market

Alright, that's it for @0xPolysynth

If you'd like to keep up to date with time-sensitive opportunities then follow @cyrilxbt

Also every Thursday I write the communities top voted project. 🧪

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