We are thrilled to announce that, following the approval on the EMDX Governance System, the Dual Investment will be live tomorrow Friday, January 20th 2023 at 8am UTC. This financial product allows traders to earn interest regardless of market direction.
Early Access will be granted to EMDX OG roles Genesis and Early users as part of their perks during the first week of launch. The EMDX Dual Investment will be available to all users on Friday, January 27th
Dual Investment is a Proxy App that allows traders to set the price at which they will buy or sell an asset at a specific date while also earning returns. A good approach to get the essence of the DI is to think of it as a limit order to buy an asset at a lower price or to sell it at a higher price, while getting an extra yield in return.
Try it out here: https://dual-investment.emdx.io
One of the main benefits of Dual Investment is that it is really easy to use, even for inexperienced investors. It can be a good option for those who want to potentially grow their wealth over time but don’t have the time or knowledge to constantly monitor the market.
Note: Please keep in mind the app is running on mainnet and as of now only BTC and ETH are able to operate. Stay tuned for more information.
How does it works?
Dual Investment is a bi-directional investment tool that offers two main strategies for users to choose from:
- Buy low: Allows users to buy an asset at a certain date at a lower price than the current market price, while earning interest.
- Sell high: Allows users to sell an asset at a certain date at a higher price than the current market price, while earning interest.
Users can select the strategy that aligns with their goals and market predictions, and then set the following parameters for the investment:
- Initial amount: The amount of tokens the user wants to buy or sell.
- Target price: The price at which the user wants to buy or sell the asset. The target price is fixed and will not change.
- Settlement date: The date at which the negotiation will take place if the target price is reached.
If at maturity the target price is reached, the tokens previously deposited in the vault will be sold or bought at the specified price.
More Target Price levels and Settlement Date alternatives will be available as the app gets stabilized.
Why to choose the “Buy Low” Side?
To use an existing stablecoin stash to buy crypto at a desired lower price, on a desired date, and also make additional earnings, or to accumulate more stablecoins through interest income
Why to choose the “Sell High” Side?
To sell an existing crypto stash at a desired price on a desired date and also make additional earnings, or to receive more stablecoins through interest income.
Subscription Window and Epoch
- Epoch: It’s the term life of the vault and will last over a week, with a starting date on every Friday at 12 pm UTC and ending date on the next Friday at 12 PM UTC.
- Subscription window: it will start every Friday at 8 am UTC (subscription opening), ending at 12 pm UTC (subscription closing), on the same day.
Deposits will be exclusively accepted until the subscription closing time. Any deposits taking place after that deadline will be invalid and will generate no interests.
Calculation
If at Settlement Date the Target Price is reached: Your subscription amount and interest income will be converted into the alternate currency at the target price as conversion rate. The below formula shows the total amount you will be receiving: Sell High:(Subscription Amount * Target Price) * [1 + (APY% * Deposit Days / 365)] Buy Low:(Subscription Amount / Target Price) * [1 + (APY% * Deposit Days / 365)]
If at Settlement Date the Target Price is not reached: Your subscription amount and interest income will not be converted and you will receive an interest payment in addition to your subscription amount. The below formula shows the total amount you will be receiving: Subscription Amount * [1 + (APY% * Deposit Days / 365)]
Where does APY come from?
The APY is generated from the premiums paid by the buyers of options. When a user selects the “Buy Low” strategy, they are instructing the system to sell put options, which gives the buyers the right to sell the user an asset at the Target Price and at the Settlement Date. The buyer pays a premium to buy this right, and therefore this premium becomes the source of the APY paid to the depositing user.
Similarly, when a user selects the “Sell High” strategy, they are instructing the system to sell call options, which gives the buyers the right to buy an asset at a certain price and time. The buyer pays a premium to buy this right, and therefore this premium becomes the source of the APY paid to the depositing user.
If you are a Genesis or Early user, start trading by entering here. It will be open for everyone on Jan. 27th. Also, you join the discussion and stay up to date in our private Discord channel #dual-investment.
Disclaimer: It’s important to keep in mind that as with any investment, there are risks involved and it’s crucial to do your own research before making any investment decisions.
For questions or concerns, please feel free to reach out to us on our Discord Server, where our team will be more than happy to assist you.
