Struct Open BETA: Alpha Edition
Structured products are known for their flexibility and the way they cater to the different risk appetites of investors. Given the recent market conditions, there is an increasing need to create more sophisticated investment products in DeFi that provide the same risk management as Traditional Finance (TradFi).
We have all seen it! The recent macroeconomic event and prolonged bear market have shifted the risk appetite of investors towards fixed-income sources of yields.
Nonetheless, the current DeFi landscape lacks such products: as post-Luna stablecoin yields are not sustainable and have even fallen below low-risk instruments in TradFi.
You can hedge your portfolio by holding stables, but what are you going to do with them?
Are you just going to let them sit idle? Waiting for the bottom?
The lack of fixed-yield returns in DeFi is a barrier to entry for institutional investors and retail users with a more conservative risk appetite.
As such, there is a growing need for investors to have products that allow them to be more risk-averse or risk-prone, according to their tolerance, without having to be subject to the risks associated, for example, with perpetual trading.
Struct Genesis Vaults and Incentivized Beta
Struct Genesis Vaults have been created building on these trends by offering the best from the intersection of Structured Products and DeFi:
- Permissionless Structured Products;
- Sustainable yields in uncertain market conditions;
- Different risk-on and risk-off options depending on risk appetite;
- An alternative investment product that can cater both to retail and institutional investors.
The Struct team is proud to announce the launch of our Incentivized Beta and to invite anyone interested in a hybrid of DeFi composability and risk-adjusted returns. The Beta will run throughout June in different stages, leading to our Product Launch on Avalanche.
Users will be able to deposit liquidity and get familiar with the Risk-on and Risk-off vaults, tailored for different risk appetites.
To make the experience smoother, we will launch the vaults in a tiered manner, on a first come first serve basis. For the duration of the open beta month, we will introduce new Struct Genesis Vaults — or add a twist to the vaults that are already deployed — on a weekly basis. There will be something new for our beta testers to try every week!
Our first Genesis Vault will be built on GMX’s GLP, and based on USDC, in order to provide a less risky and more stable form of collateral to get our users accustomed to Structured Products.
By leveraging USDC, the first vault is designed with the purpose of being stable and guaranteeing fixed returns throughout a bear market, while minimizing risk!
It will last one month and have a limited capacity for both the Risk-on and Risk-off vaults. Once capacity is reached, the vault will not accept new liquidity.
You may want to hurry up, or you will have to wait until the Vault will open again for more liquidity!
On Week 3 of our Beta, we will launch a slightly more risky Vault based on Bitcoin, with bigger potential returns. We have decided to leverage Bitcoin because it provides higher yields than our USDC vault while leveraging a secure asset and reducing volatility and exposure to other risks.
Since the vaults will be based on a first-come-first-struct mechanism, we are reserving the possibility to join the vaults early for our most active users.
How do you make sure to join the Vaults in time?
What’s happening in Weeks 2 and Weeks 4?
Join our Discord and get a headstart with the yield by being StarSTRUCT!
In the absence of a truly decentralized cryptocurrency, USDC is still the most stable form of collateral, with the lowest risk to hold. It is fully backed by US treasuries and is currently the least risky “economical liability of a dollar”.
Furthermore, USDC has been recently battle-tested by the failure of SVB Bank and the depeg event and has shown resilience and strength.
In the future, we aim to introduce fully decentralized stablecoin alternatives that can scale and support the infrastructure needed to power DeFi fixed-income products.
Why GMX and GLP?
GMX is a leading protocol on Arbitrum and Avalanche that has revolutionized Perpetual trading with the introduction of its dual token model with GMX and GLP.
GMX is currently among the Biggest Earning Protocols in terms of Daily Fees, as such the protocol generates sustainable cash flows, making GLP a perfect candidate as an underlying asset for Structured Products to accrue yield.
GLP is the liquidity provider token of GMX, an index of the assets that GMX uses for swaps and trading. It can be minted or burned using the supported underlying assets.
When providing liquidity to GMX, users receive the GLP token, entitling them to a share of protocol fees. Nonetheless, based on a basket of assets comprising about 50% stablecoins and ~50% ETH and BTC, the GLP price fluctuates and effectively means that users are still exposed to the performance of underlying assets (BTC/ETH).
GLP has proven to be an important block for DeFi composability on Arbitrum and Avalanche, with several Option and Perpetual protocols building on top of GMX.
Since Structured Products are based on underlying assets, Struct has chosen to build its first Genesis Vaults on GLP, focusing on security, and minimization of user risk, as well as offering risk-tailored Vaults on one of the most used DeFi products.
The incentivized Beta will be open for all StarSTRUCT users, the most active members of our community! In addition, all users who have joined our waitlist should expect a little something in their inboxes soon.
We are extremely grateful for the response we had to our Waitlist and for finally giving our users the chance to try our platform and build it together! The controlled environment of our Beta and the community feedback will translate into a final Struct product perfectly tailored to what is needed by our users.