OceanEx structured products an interesting twist on standard DeFi investing
The idea of staking cryptocurrency for annual returns or other bonuses is far from a new concept in this space. Many different platforms, exchanges, and token models offer solutions like this, giving token holders a safe and consistent way to put their holdings to work. Still, adoption is quite low relative to the size of large cap products, as many traders like to maintain their liquidity, have security concerns, or simply can’t be bothered to learn about these investing opportunities.
OceanEx’s Sharkfin
OceanEx spotted an opportunity to make the investment process more engaging using a structured product. In the investment world, structured products take a low-risk asset like a bond and attach a secondary asset to make the potential returns more enticing. If the secondary asset performs well, the investor’s return can be much higher, without adding a lot of risk to the issuer. In the case of OceanEx, the returns are tied to the performance of Bitcoin – if BTC’s value stays within a set window, investors can earn as much as 35.5% APR. This window, known as the hook range, is set to maximize the chance of users earning higher returns.
This gamifies the investment, as token holders must consider how they believe the market will react. And with 3% APR the lowest possible return, it’s a lot safer than risking assets in the futures market, trading with leverage, or just trying to time a few well-placed swing trades.
The short-term lockup (only 6 days) makes the investment product even more appealing as we approach the Bitcoin halving – investors don’t need to worry about locking their funds up for the 90 day or 180 day periods that other platforms offers. Users can put their existing assets to work without entering into a long-term commitment with an exchange.
By the Numbers
- 3: The third sharkfin structured product subscription period is now running through May 9th at 10PM (UTC+8).
- 15%: The recent sharp rise in Bitcoin pushed the first two products outside of the fin, meaning investors only got 3% APR additional returns. Still, investors won’t be complaining about an upwards rise in value since the USD value shot up around 15% over the last week.
- 30: The total amount of Bitcoin being accepted in this third event.
- 9.63%: The APR for OceanEx’s fixed annual Cryptofarm event being launched at 7PM on May 8, for those who prefer a more stable guarantee.
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Row 1: Node name Row 2: Minimum holdings