Dual Investment with Downside Protection
Last updated
Last updated
Dual Investment is an advanced strategy to earn high returns by allowing users to buy or sell cryptocurrency at their desired prices and times. This method leverages the high volatility nature of cryptocurrencies to generate sustainable and substantial interest yields, regardless of market direction. Currently, the average annual percentage rate (APR) for Dual Investment in mainstream coins ranges between 35% and 150%, reflecting the lucrative opportunities in the current market.
The Dolphin.fm AI agent provides an interactive and user-friendly way to help users easily take advantage of this product, making it more accessible and manageable among dozens of investment selections, and includes a risk protection mechanism to safeguard investments.
Buy Low section gives users a chance to buy the desired crypto at a lower price in the future while being guaranteed to earn the extra high interest.
Example: Buy Low BTC with USDC, Deposit USDC
Target Price Reached: On the Settlement Date if the Market Price is at or below the Target Price, the target currency (BTC) will be bought with a deposit of USDC at the target price.
Target Price Not Reached: On the Settlement Date, if the Market Price is above the Target Price, the user will keep deposited asset (USDC)
Sell High section gives users a chance to sell holding crypto at a higher price in the future.
Example: Sell High BTC for USDT, Deposit BTC
Target Price Reached: On the Settlement Date, if the Market Price is at or above the Target Price, BTC will be sold at the target currency (USDT)
Target Price Not Reached: On the Settlement Date, if the Market Price is below the Target Price, the user will keep deposited asset BTC
AI Agent would not only provide necessary educational information for users but also ask specific questions about investment length, expected principle retain rate, max/min sell high/buy low prices, also provide a downside protection option:
After the user provides all answers, our AI-augmented quantitative strategy will be executed to generate an optimal portfolio construction for you. This allows you to invest with One-Click:
Users could choose to do one-click invest or do manually deposit with redirected to Dual Investment product main pages.
User can also type “show my positions” to check the current investment portfolios and market metric such as current price, implied volatility, underlying asset option market volume, etc
Compared to most high-yield DeFi financing products, such as AMMs, the beauty of Dual Investment lies in its purely linear risk. Unlike the non-linear and infamous Impermanent Loss, hedging against the risks of Dual Investment is much simpler for any user. Additionally, Dolphin.fm has integrated a unique downside protection mechanism, unavailable on other platforms offering similar products.
The risks associated with Dual Investment primarily arise when users deposit volatile currencies like BTC. In positive scenarios, users earn high interest if the price remains below the target price or exchange their BTC for a more stable currency if the price surges above the target price. However, if the price slumps during the locking period, users face linear asset depreciation.
Dolphin.fm’s AI agent addresses this by asking users for a minimum sell price to protect against downturns. This means if BTC experiences a significant drop, the system can execute a stop-loss at the target price, allowing users to minimize losses and convert to a stable currency at the settlement date, with only a small potential sacrifice in the initial APR.
