The Problem
ETH Holders are losing!
0% return since last 3 years
Around $93B in ETH or 42.6% of supply is currently locked in smart contracts with the expectation to put there ETH to use and earn decent yields. However, returns are abysmal. 2. ETH Price protection is capital inefficient
No lending protocol/staking mechanism or other ETH yield earning mechanisms anywhere in Defi currently offers ETH price protection. The reason being
Hedging ETH is not cheap ( 1 month put option on ETH costs > $170 at current ETH price of $2000).
Existing delta neutral products doesn't allow to capture ETH upside potential
Current derivative protocols don't support tokenized positions like LRTs or AAVE aETH as collateral for hedging trades
There are no new hedging mechanisms that can lower down the cost of hedging
Last updated