The crab strategy implementation will see a considerable upside made possible with a ‘protected downside’ according to those behind the innovation.
Katana Crab Strategy
Katana has announced their latest addition to their leading product suite, the crab strategy, which will look to open up trading options for their users.
The team exclusively revealed the innovation to Web3 Wire before making the announcement public on Twitter on April 11. Built on top of the premium Power Perpetual exchange on Solana, 01 Exchange, the crab strategy represents another addition to Katana’s leading strategy suite.
“The crab strategy adds a another dimension to Katana’s leading yield product suite,” the Katana team exclusively revealed to Web3Wire. “Now users can express a delta-neutral, short volatility view on assets in addition to selling potential upside (covered calls) and being bullish with their stables (cash-secured puts). This is another big step toward Katana becoming the true yield generation layer for DeFi.”
In an effort to establish itself as the yield generation layer for DeFi, Katana has seized this opportunity by building the Crab Strategy, which Opyn pioneered. The crab strategy will see the addition of a volatility product to the Katana strategy suite, meaning traders and general users will have more options available to them.
An earlier tweet offered a teasing glimpse of what’s to come:https://cdn.embedly.com/widgets/media.html?type=text%2Fhtml&key=96f1f04c5f4143bcb0f2e68c87d65feb&schema=twitter&url=https%3A//twitter.com/katana_hq/status/1512451053928730632&image=https%3A//abs.twimg.com/errors/logo46x38.png
After attracting significant investors in their Seed round raise, Katana is rolling with the punches, pushing their innovative arm in implementing effective strategies. For a comprehensive overview of what Katana is working on, check out our Project Insight piece by Abhinav Tiwari.
What is Opyn’s ‘Crab Strategy’?
The crab strategy was the first application of Opyn’s new product, SQUEETH, or squared-eth. Often described as a perpetual instrument, it is created to follow a convex path relative to the spot market price of ETH. Because of this, it can be possible to contain volatility of market. It follows the price of ETH even as it flies up, retaining a relative increase. As a result, the fall isn’t as striking as a linear 2X perpetual. Since ‘Squeeth’ holders pay a funding premium, the instrument continuously takes away gains even in a favorable market.
“Long squeeth is a levered position with unlimited ETH squared upside, protected downside and no liquidations,” Wade Prospere, Opyn Marketing Member, told Brady Dale from The Defiant in January.
What is Katana?
Katana was created to build the yield generation primitive for Solana. The protocol has a suite of packaged yield products across the risk spectrum that enables users to passively access the best risk-adjusted yields in the ecosystem. Yields in Katana’s product suite are not dependent on liquidity mining programs, but instead, they rely on price action that will enable a diversified and more sustainable source of yield.
Find more about Katana here:
Website | Twitter | Medium | Documentation | Discord |
Source : web3wire.news
