what's up everyone i'm mike and welcome back to top crypto and today we're going to talk about
another high potential project called fade a nuts but before we start please notice our disclaimer
since i am not a financial advisor this video is for informational and educational purposes only
so without further ado let's begin to our topic fadenuts finance is a new protocol that helps
users to access cryptostructured products on multiple decentralized networks to generate a
return for their portfolio they developed theta nuts because they saw that structured products
enable the creation of new option markets in this nascent ecosystem while delivering sustainable
returns to users via option selling the future will be based on multi-chain interoperability
theta nuts have made thier project evm compatible to enable each ecosystem to
launch structured products on theta nuts and to have the best user experience for their users
thetanut strategies enable users to earn a high base yield on their assets through our strategies
user will hold a token long that position desires to earn more yield in that token that they are
long in example user holds eth and they are long eth they want to generate more income in eth
user deploys eth into theta nut strategies and earns more eth over time subject to the
risk parameters earn yield and bit dao tokens by running an automated covered call strategy
earn yield and bid dao tokens by running an automated put selling strategy earn yield in wo
tokens and swap for usdc when in the money a user can deposit into the vault at any point in time
except during the auction period when the user deposits their funds join the deposit queue when a
new epic begins their deposits join the vault and begin to generate yield and subject to vault risks
a user can initiate withdrawal from the vault at any point in time except during the auction period
when the user initiates withdraw their funds join the withdrawal pool after epic settlement funds in
the withdrawal pool will not be share in neither the yield generated nor the risks associated with
the vault users can claim their withdrawals from the withdrawal pool at any time structured product
strategies are complex which creates a barrier of entry for the everyday speculator from taking
advantage of their yield potential theta nuts vaults will allow any participants to deposit
an asset into a vault that performs a desired pre-assigned strategy and profit from the premiums
fade and nut strategies can have varying tenors this is dependent on the strategies that have
been launched subject to community demand or the mandate received by partner daos fadenut's basic
strategies which are covered calls and covered puts can be cash settled or physically settled
cash settlement refers to a settlement type where actual delivery of the underlying asset
is not required physical settlement refers to a settlement type or actual delivery of
the underlying asset is required example settlement price at 0 800 utc for eth
is at 2 700 the strike selected for the call vault was two thousand five hundred dollars
there was a deposit of one eth in the cash settled scenario the value of eth will be settled such
that it will have the equivalent vault of eth at two thousand five hundred dollars in the physical
settled scenario the eth will be swapped for usdc or equivalence that is equivalent to two thousand
five hundred dollars vaults with expirations have a final settlement price at the conclusion of the
epic upon expiration this final settlement price is signed by the protocol team but is only valid
if it is bound within a fixed percentage of the latest price feed from the chain link oracle
in the event that the protocol team does not sign off on the price after a delay anyone can trigger
the retrieval of the first valid price after expiry from the chain link oracle's on chain
price history and the contract will use it as the settlement price settled using coinbase oracle
anyone can pull the coinbase api to obtain list of signed prices and choose the correct one to submit
accordingly this is verified by the coinbase public key hard-coded into the smart contract
if the vault is unable to obtain the coinbase oracle's feed the smart contract will fall back
on chain link auto settlement the contract finds the price that is committed after
expiry by finding a round id and one such that that n1 is before expiry and n is after expiry
if smart contract is unable to find such round id after one hour smart contract
will settle using latest chain link price regardless of freshness of chain link data
this assumes a chain link heartbeat of one hour so the price will be from a time between
expiry and one hour after coinbase oracles offer minute by minute provision of price data
for a variety of supported assets and signs the price data obtained at the start of every minute
this guarantees the price sign reflects the price precisely on the expiry chain link offers a robust
multi-reporter decentralized price feed that does not have the same update frequency the chain link
oracle only updates every hour or on a price change of greater than 0.5 percent but serves
as the perfect backup as it is non-sensorable and always available due to the ethereum blockchain
each vault sells options on behalf of the vault users and whitelist auction participants will
make a bid to buy the options the auction is held off chain and the winner is assigned as
the vault designated maker by the manager role of the vault each vault has a designated maker
who when assigned will then send the premium into the vault through a provided web 3 form
the vault will then on expiry pay out the settlement to the maker the manager will then
restart the next round of the auction here are the investors of theta nuts three arrows capital
derivate qcp capital jump crypto and many more let's take a look at thetanuts twitter page
they started their official page back at september 2021 and have 12.7 k followers and here are the
pinned tweet of theta nuts on twitter they are pleased to announce the completion of the seed
round led by three arrows capital derivate exchange qcp capital and jump crypto hq
the 18 million us dollar capital infusion from the seed round will go toward their efforts to create
innovative defy structured products and that's all for theta nuts come visit our channel subscribe
and watch out for our next videos here at topcrypto thank you for watching