Confidentia: Dual Finance — Bringing The Alpha and Gamma
Cōnfīdentia (n.): Assurance, Confidence, Boldness
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Do you know of the dual nature of finance? There exists a binary balance between opposites; bull or bear markets, hawkish or dovish policy, winning or losing trading, which can be unlocked and amplified by leveraging derivatives in time and volatility space, rather than purely price.
Who better to consult on this topic than Dual Finance, the team designing sustainable structured products to re-incentivize Web3 communities?
What is Dual Finance?
Dual Finance is designing the next generation of sustainable structured products to incentivize Web3 communities.
Dual Finance’s flagship product, Dual Investment Pools (DIPs), leapfrogs Decentralized Option Vaults (DOVs) in execution and user experience. DIPs allow customized and fully controlled option yield strategies for token holders. Dual Finance is able to offer these products in a more competitive, capital-efficient, and risk neutral manner via live streaming prices, rehypothecated collateral, and a novel staking offering. Select your risk appetite, stake BTC, ETH or SOL and get paid immediately with Dual Finance!
Dual Finance extends its product offering to other projects and communities through Staking Options. This groundbreaking structured incentive better aligns decentralized communities to collaborate for the benefit of a project. Staking Options force token supply to unlock only when the project’s goals are met and the price supports it. No more rewards in tokens, but options on tokens!
Goodbye inflationary death spirals. Hello, sustainable token incentives!
Dual Finance x Pyth
Dual Finance leverages Pyth prices to be able to continuously stream DIP liquidity and select strikes for Staking Options! The Backstop Volatility Engine manages DIP pricing and unlocks the ability to bootstrap illiquid crypto options markets by inputting Pyth price. Setting strike prices referencing Pyth is vital to design dynamic incentive programs for projects using Staking Options.
Dual Finance’s New Risk Manager
Dual Finance has developed a community-owned, open-source Risk Manager program for any protocol DIP positions.
This program deploys a trading strategy called gamma scalping using Pyth pricing on Mango Markets. For the first time in the history of crypto, communities can participate in automated options risk management strategy. Gamma scalping is configurable through governance and puts to work capital from the treasury for the benefit of its token holders while increasing liquidity of its own product offering.
For in depth coverage of the internal functioning of the Risk Manager program, please see: https://medium.com/@dualfinance/8f5b307de43d
Dual Finance plans to launch the DUAL token in the coming months! You can trial DIPs for yourself in limited sizes today on Solana mainnet. For detailed reads on any of their upcoming plans please see their blog. For more condensed information follow their Twitter.
Dual Finance’s Kick-Off Townhall will be hosted tomorrow, August 30th, 2022 at 8:30pm on Discord to cover structured product basics, launch plans and its decentralized risk management framework!