Cega Super Sanics
About Cega Super Sanics
Cega is a decentralised derivatives protocol focused on pure exotic derivatives.
What does this mean?
This means you can invest into Cega Vaults with various yield strategies and barriers to suit your risk/reward.
Cega creates baskets of options, this means a combination of assets.
An example of baskets could be (BTC x ETH x SOL) or (ETH x SOL x AVAX)
These baskets have various protection barriers so suit what risk you are willing to take all the way up to 90% to allow for volatile markets.
Cega’s products are attractive positions for market makers. Market makers will have both cheap protection against downside as well as an upside position that provides liquidity for existing option vault strategies in the market.
Cega is primarily an irl company and many vaults can be accessed by non NFT holders.
Which is wher the NFT’s come into play. If you want access to the superior vaults you will need to hold one or more from the Cega Super Sanics collection.
Currently Cega has two vaults that are holder access only.
Firstly the Insanic Vault which offers exposure to Ethereum, Solana and Avalanche in this particular basket while offering a generous 50% price protection barrier.
Holding 5 or more from this collection opens up access to the “Solana Summer Defi” vault.
The vault has higher risks but a much larger APY% and a lockup of 30days.
How to use the Vaults
Should you choose to use the vaults you will deposit USDC into the vault and receive tokens in exchange. Keep these tokens safe as you’ll need these to withdraw later.
Every day your deposit is in the vault you will be accumulating interest. So at the end of the term you may withdraw your deposit plus any interest.
This might sound easy but it not without risk, price action is not your friend when using these vaults. This is where price protection comes in.
Price protection is set on either side of the underlying assets on the day the vault is executed. There are two barriers to keep an eye on.
Knock Out Barrier
The knock out barrier comes into effect when the underlying asset rises to meet this barrier. The vault automatically expires and closes. Deposits will be available to withdraw with any daily interest accrued on top of initial deposit.
Knock in Barrier
The knock in barrier is downside protection. An example of this would be if the price protection was at 50%. If any of the underlying assets drop by 50% during the lockup period this would cause the Knock In barrier to come into effect. The vault would expire and 50% of the deposit plus daily interest accrued would be available for withdrawal. Unfortunately with price action going down you will lose some of your deposit (Dependant on % set in price protection barrier)
| Team Members | Role |
|---|
Arisa
Jason
Winston
Pros
- There are a variety of vault options to choose from with some decent APY. They have both Knock In and Knock out protection.
- Team do listen to what holders want and provide vaults with wider KI KO barriers or higher APY.
- Vaults automatically role over so you don’t need to constantly check on them
Cons
- Lockup is 27days so in volatile markets this can easily trigger a KI or KO event
- You need to hold NFT to access the higher APY vaults
- Unlikely the NFT will increase in value as the team has little experience with NFT’s
- Withdrawals only happen and end of lockup and takes aprox 48hrs to return funds to your account
Thoughts/summary
This project is less about the NFT and more about the vaults that you can access to deposit any USDC you have spare for some high APY.
The return is really not made on flipping the NFT or banking on floor price going up. Finding the vault that suits your risk level and getting a high APY is where to profit.
The vaults have overall had minimal KI or KO events but are better suited to low volatility markets.