PEAKDEFI has released a new product: the PEAKDEFI Yield Fund!
PEAKDEFI is a decentralized protocol that provides decentralized solutions on various blockchains. A core project of PEAKDEFI is a decentralized asset management fund, which was programmed on Ethereum in the past. However, due to the high gas fees, the PEAKDEFI team decided to program this fund on the Polygon blockchain. Therefore, the new PEAKDEFI Yield Fund is now available on the Polygon chain.
What is PDYF?
The PEAKDEFI Yield Fund is a yield-generating token deployed across multiple market-neutral options-based strategies. We have a list of 7 different market environments, each with its unique strategy. Our quant research team determines which system to deploy in each environment. This fund targets a 15–40% return annually with a 5% or less drawdown. Investing in the PEAKDEFI Yield Fund can earn a consistent return no matter what the markets are doing.
How does PDYF gain value?
The PEAKDEFI Yield Fund seeks to gain value by increasing the USDC-denominated capital held within the tokenized fund, thus raising each PDYF token’s Net Asset Value. As the options strategies collect premia or increase in value, it is converted to USDC and then redeployed to an additional or the same options strategy to compound the returns.
What are the risks associated with Options-Based Yield Farming?
Options Based Yield Farming has become a popular way to generate yield in the DeFi space. However, several risks associated with this strategy need to be considered. The first risk is platform risk, as there is always the possibility that the platform on which PDYF is being conducted could fail or be hacked. The second risk is liquidity risk, as the constant selling of options can lead to a lack of liquidity and high slippage. The third risk is market risk, as the underlying asset price could move against the position.
If you want to learn more about the PEAKDEFI Yield Fund, just visit the new website or read up on our Gitbook.
Or read everythin in our Gitbook: https://peakdefi.gitbook.io/peakdefi/peakdefi-platform/peakdefi-yield-fund-pdyf