Cega’s exotic DeFi derivatives expand to Ethereum Layer 2 Arbitrum

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Cega Finance has expanded its Solana and Ethereum-based DeFi structured investments product to the Layer 2 network Arbitrum.

Cega’s L2 vault strategy claims to offer USDC stablecoin stakers an estimated APY of up to 63% and downside protection of 50%.Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.DeFi derivatives protocol Cega Finance has expanded its Solana and Ethereum-based structured investments product to the Layer 2 network Arbitrum.

Structured investments — a category within a financial derivatives market worth trillions of dollars in traditional finance — are more customized than regular options that allow users to buy or sell an underlying asset at a specific price and time. “Additionally the low fees on Arbitrum combined with the familiarity/battle-tested nature of Ethereum makes Arbitrum a good option for DeFi users who want to try Cega and care about those qualities,” Toyosaki added.Discussing the benefit to Arbitrum, Toyosaki said the company believes"that Cega products will create strong benefits for users on Arbitrum to gain access to a new kind of return with a strong reward.

“For example, in the case of the fixed coupon note structure, the structure contains a 'basket option' which involves multiple underlying crypto assets to create a higher yield. Cega vaults are USDC deposit, USDC yield, and the yield received by users is the premium that options buyers pay to have those options for the duration of the 27 day staking period,” Toyosaki added.

Cega said it has processed over $280 million in trading volume to date, with a peak total value locked of around $50 million. Its current TVL stands at, according to its website. “During the FTX crisis and bear market environment there was a significant drawdown in TVL from our peak, Toyasaki told The Block.

 

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