Cruize Finance

A Primer on Cruize Finance

Cruize is a web3-based platform that allows investors to earn yields on #cryptocurrencies while minimising volatility risks. Employing a unique combination of derivatives and #bonds provides users with vaults to stake their capital and generate safer yields through structured products. Cruize has also garnered #support from respected venture capitalists such as Big Brain Holdings, Delta #blockchain Fund, and Gravity, validating its potential for success and #growth in the finance industry.

Their mission:

To build a user-friendly #defi platform for safer yield opportunities, making it accessible for all experience levels, and to constantly work on improving the platform and help more individuals access the benefits of DeFi.

What are vaults?

To access the benefits of volatility-protected yields, users can utilise Cruize Finance's vaults to stake their capital. These vaults serve as secure repositories for user funds and provide a #structured environment for generating yields. By staking their assets in these vaults, users can participate in structured products designed to minimise risk while still earning good returns.

The different types of vaults:

1. Twin Peaks

Twin Peaks Vault employs a structured product strategy, defining a range for #market participation and generating linear interest as prices move within upper and lower barriers. With a weekly approach, it offers a secure and profitable investment opportunity.

To begin harnessing the benefits of Twin Peaks, users deposit their assets into the Twin Peaks vault. This vault acts as a reliable repository for their capital, offering a safeguarded environment for yield generation. By entrusting their assets to Twin Peaks, users can explore the potential for consistent growth while minimising exposure to market volatility.

Epoch-Based Strategy:

Twin Peaks operates on an epoch-based strategy, which spans a week in duration. At the beginning of each epoch, the protocol auctions the vault to market makers. The trade is settled with the best bidder, ensuring efficient capital utilisation. This #dynamic approach optimises yield generation and enhances the overall performance of the protocol.

After every epoch, the profits captured from Twin Peaks' #strategy are reinvested back into the vault. This reinvestment occurs on a weekly basis, compounding the returns and enabling users to optimise their yield potential. The compounding effect allows for #exponential growth over time, enhancing the overall profitability of the investment.

Safe and Flexible Withdrawal Options:

Twin Peaks provides users with flexible withdrawal options to meet their individual needs. If assets are staked in the middle of an ongoing epoch, they can be withdrawn immediately through an instant withdrawal. However, if a new epoch begins after the assets are staked, they will be utilised to generate yield during that epoch. Users can only withdraw these assets after the end of the epoch by adding them to a withdrawal queue. Assets in the withdrawal queue become available for #withdrawal after the epoch ends, ensuring a systematic and secure process for accessing funds.

Innovative Yield Generation:

Twin Peaks employs a unique yield generation strategy that involves market makers taking the opposite side of the trade. These market makers pay a fixed interest rate for receiving capital from the Twin Peaks vault. A portion of the interest rate generated is set aside as the base rate, ensuring consistent returns for investors. The remaining portion is allocated towards purchasing weekly at-the-money barrier options. These options include up-and-out call options and down-and-out put options. The up-and-out call option has the spot price as the strike, while the barrier represents the upper limit of the vault range. Conversely, the down-and-out put option has the spot price as the strike, with the barrier representing the lower limit of the vault range. This innovative approach to yield generation enhances the potential returns for users while effectively managing risk.

2. Ramses LP Amplifier

The Ramses LP Amplifier vault, an extension of Cruize Finance's Genesis vault, empowers users to enhance their yields by depositing LP tokens. For the uninitiated, LP tokens or Liquidity pool tokens represent a user's ownership in a pool and can be redeemed for the original tokens. Liquidity pools simplify token swapping on decentralised exchanges, enabling seamless transactions between different cryptocurrencies with ease and convenience.

With no capital lockups or added risks, this vault amplifies the liquidity deposited on Ramses Exchange. Users benefit from the base yield generated through trading fees on the Ramses DEX dApp, as well as the boosted yield from Cruize's structured product strategy, Twin Peaks. By combining the advantages of LP tokens and Twin Peaks, Ramses LP Amplifier offers a lucrative opportunity for investors seeking to maximize their returns in a secure and innovative manner.

Withdrawals:

One of the key advantages of this vault is its flexible withdrawal feature, allowing users to initiate withdrawals at any time. However, it's important to note that withdrawing between cycles results in the loss of accrued yields for that particular cycle.

Yield generation:

The yield generation process of Ramses LP Amplifier involves multiple components. Organic yield is generated through fees paid by traders on the Ramses DEX app. Additionally, a structured product strategy is employed, where a portion of the yields funds this strategy, while the rest serves as the base APY. The highest bidding market maker settles the trade based on the vault's price ranges, and the returns are combined with trading fees.

With the Ramses LP Amplifier vault, users can benefit from the compounded growth of their LP tokens while enjoying the flexibility of withdrawals and the potential for enhanced yields.

More vaults coming soon!

Cruize plans to introduce Weather Vaults, enabling investors to build diversified portfolios with risk-adjusted investments. Leveraging market data, these innovative vaults optimize investment strategies for enhanced returns. Prepare for a new era of diversified investing with Cruize.

The new product lines feature two distinct vaults designed to cater to different investment goals. The first vault is dedicated to generating interest while providing complete capital protection. This ensures that your funds remain secure while earning a steady return. The second vault is focused on high growth, offering an #opportunity to generate high interest while still prioritising partial capital protection. With this innovative product, investors can choose the vault that aligns with their risk appetite and investment objectives. Experience the best of both worlds – #stability and growth – with their new vault options. Customers can now invest confidently and achieve their financial goals with Cruize’s diversified vault offerings.

Cruize is also developing permissioned vaults exclusively for institutional treasuries, providing a secure and controlled environment for managing assets. Stay tuned for this tailored solution designed to meet the specific needs of institutional investors.