Announcing Pods Yield
Introducing one-click deposit strategies
What is Pods Yield?
Pods Yield is a one-click deposit investment product.
stETHvv
Pods Yield’s first strategy is called stETHvv (Eth Volatility Vault). stETHvv is a low-risk strategy focused on ETH accumulation.
It combines Lido with a strangle to get consistent yield and earn more in moments of high volatility.
Who is this product made for?
This strategy is perfect for those that hold ETH and want to accumulate more ETH over time. It uses ETH’s volatility in its favor and earns more every time ETH price bounces, up or down.
Live on Mainnet
The stETHvv vault is live on mainnet 🎉
https://app.yield.pods.finance/
There is a 500 ETH TVL cap at the moment.
Strategy backtest
If this strategy had been available since ETH started in 2015, how would it have performed until now?
This graph shows the result of a backtested strategy for each strategy for seven years:
- Pods stETHvv vault,
- ETH invested at 3.9% a year,
- and just holding ETH.
On stETHvv strangle set up, we’re estimating the purchase of call and put options using 50% of the weekly yield. This also considers weekly 20% OTM options, priced with regular Black Scholes and assuming 90% implied volatility. This backtest also assumes stETH is always equal to one ETH.
This graph shows how the vault performs whenever there’s an exercise. The exercise profit amount gets incorporated into the initial deposit, and the following week will compound the yield on top of that newly incorporated sum.
You can identify exercises on the graph by checking when the balance goes up a level or step.
Please note that past returns are NOT a guarantee of future returns.
Product Values
Synthesizing one strategy into one token is important not only to DeFi's composability but to users' usability too. Users can transfer their deposits between addresses, use them as collateral on other protocols and easily verify their holdings on a certain strategy.
In addition to that, some other values the vault offers to its users are:
- Access complex strategies with one click.
- Withdrawal at any time after the deposit was processed.
- Only see actual historical returns.
Risks Review
stETHvv uses Lido as a primary yield source. Lido is a decentralized staking protocol that allows users to stake their ETH and receive ETH 2 rewards.
Lido has a wide use among the DeFi community, with a TVL of more than 4.9 billion USD. Just like any other DeFi protocol, it is not free of risks.
Our understanding of Lido’s risks are:
- Exposure to any shortcomings with Ethereum PoS merge
- Governance attack
- Protocol level risk
- Smart contract exploit or bug
- ETH and stETH market’s illiquidity could trigger a wide depegging
Using Pods ETH Vault entails that users understand and agree with the risks of Pods as a protocol and all the underlying protocols.
In addition to Lido's risks, there are risks related to Pods protocol that could affect the vault's funds. Our understanding of the current risks on Pods are:
- Centralization risk
- Protocol level risk
- Smart contract exploit or bug
This vault is in its first version, we're gonna continue improving the vault's functionalities as we evolve. Currently, there are manual parts to its functioning, and we've been making decisions to limit our access to the funds within the vault. The actions are:
- The investor contract can only interact with 50% of the yield generated by the vault per week;
- The investor contract is held in a 2/5 multisig.
- The withdrawal fee is currently 1% and is limited to 10% at max;
- The admin keys do not have access to users' funds however it can pause the system, preventing users from withdrawing during that period.
Contracts
This vault is under audit, and it is not fully audited yet.
Our contracts are open source for you to inspect at https://github.com/pods-finance/yield-contracts
That's all for now.
Join our community, follow us on Twitter and sign up for our newsletter on our website for updates.
We're looking forward to hearing from you!
About Pods
Strategies, vaults, primitives, or tooling. We are building DeFi as we would like to use it.
Check out the app at https://yield.pods.finance/
Join the Pods community
app | website | documentation | blog | twitter | youtube | telegram | discord
