Earn high yields
Last updated
Last updated
dCDS is a high yielding primitive where users can generate high yields on any stablecoin or any token.
Anyone holding stablecoins or volatile tokens can put them to work by providing liquidity to on-chain credit default swaps (CDS) and earn passive yield. Initially we will be accepting these tokens in dCDS
USDT
USDA+
Optimism
MODE
These credit default swaps are on-chain and global products. The balances will be transparent to everyone at all times. The yields are generated through option fees deducted from the loan value of borrowers minting USDA+ who are looking for price hedging protection on their tokenised ETH position. The borrowers are not paying anything out of their pocket and instead will just get 3% - 4% less loan value on their ETH position. Our simulations indicate that net yields can reach up to 200%, driven by embedded option premiums. These returns are subject to ETH volatility risk.