At Matrixport, we began offering Dual-Currency BTC on our platform at the end of 2019 and users from around the world have made it a big part of their investment strategies. We are excited to be offering users who have had the opportunity of using Dual-Currency BTC as well as new and eager users of the Matrixport website and app to have a look at our new edition in Dual-Currency ETH starting on 18th May, 2020.
The Dual-Currency Product line is an investment where the user has the knowledge of the potential yield realized at the time of the investment. The currency selected, be it either ETH or BTC, will fluctuate over the lifespan of the contract, and depending on the Settlement price in relation to the Linked price, this investment has the potential for high returns all while indulging the various risk types of the user base. For ETH investors who hold a conservative outlook on short-term ETH price, excess ETH income can be earned by choosing the most ETH-safe Linked Price. On the other hand, ETH investors who also intend to hold and earn stable currencies can enjoy a wider range of choice and select higher yield products. Therefore, it offers great versatility and opportunity for investment gains.
Let’s take a look at how the Dual Currency Product works using the following example:
Here we have an ETH/USD product with the parameters as follows:
- Linked Price: 200
- Expiry Date: 20-May-2020
- Yield: 5%
- Annualized Yield: 107%
- Investment Currency: ETH
On 04-May-2019, Alice bought 1 ETH notional of the above product.
- If ETH weakens between May 4 and 20 and the Settlement Price is below USD 200, Alice receives her original investment and the 5% yield in ETH. Therefore, she receives 1ETH(1+5%) =1.05% ETH
- If ETH rallies between May 4 and 20 and the Settlement Price is at or above USD 200, Alice receives her original investment and the 5% yield in USD. Therefore, she receives 200 + 200 *0.05 = 210 USDC
Simply put, Alice will be guaranteed a 5% yield on the expiry date. The only uncertainty is whether she will receive the return in ETH or USDC, depending on where ETH/USD stands on the expiry date.
Head over to Matrixport.com to get started today and reach out to us through our various social media handles.