10. Dual Investment

Detailed information about partner integration with high-yield product which available for our community.
Written by Robert
Updated 4 months ago

Welcome to Dual Investment - an innovative high-yield structured financial product designed for investors seeking higher returns from their cryptocurrency investments. Dual Investment allows investors to invest in cryptocurrencies, leveraging the liquidity of the crypto market to maximize potential earnings. By utilizing Concentrated Liquidity Market Making (CLMM) from decentralized exchanges (Uniswap, QuickSwap, Trader JOE, PancakeSwap), Dual Investment is able to offer a maximum annual percentage yield (APR) of 220%.

How Dual Investment Works

Dual Investment offers two staking periods: 12 and 24 hours with up to 220% APR. You can select the duration that best aligns with your investment strategy. Our advanced algorithms monitor market conditions and adjust strategies to provide guarantee returns. The type of settlement coin vary based on the cryptocurrency price at the end of the Dual.

If the Closing Price during the staking period equals or exceeds the Entry Price, you'll receive: Funds + Profit in Quote Ticker (For example, in an ETH / USDT Dual, it would be in USDT). However, if the Closing Price in 24 hours falls below the Entry Price, you'll receive: Funds + Profit in Base Ticker (In the case of an ETH / USDT Dual, it would be in ETH).

Key Terms in Dual Investment

  • Base Ticker: The first ticker indicated in the Dual's name represents the Base Ticker. For instance, in a Dual ETH/USDT arrangement, the Base Ticker would be ETH. The cryptocurrency that the investor may receive as a return on their investment, determined by market conditions at the end of the Dual.
  • Quote Ticker: The second ticker indicated in the Dual's name represents the Quote Ticker. For instance, in a Dual ETH/USDT arrangement, the Quote Ticker would be USDT. The cryptocurrency that the investor may receive as a return on their investment, determined by market conditions at the end of the Dual.
  • Entry Price: This is the price of the Base Ticker at the onset of the Dual.
  • Close Price: This represents the price of the Base Ticker at the conclusion of the Dual.
  • APR: This is the estimated Annual Percentage Rate.
  • Staking Period: This is the duration for which the Dual Investment product is held. Dual periods are offered of 12 hours and 24 hours.
  • Input Ticker: The cryptocurrency ticker that user contributed to create the Dual.
  • Output Ticker: The cryptocurrency ticker that user received after completing the Dual.

Examples of Dual Investment Strategies

Dual Investment provides users to earn high returns based on market conditions. Depending on the settlement price (the price of the base ticker at the end of the Dual), users can receive either the base ticker or a quote ticker as their returns.

Here, we provide detailed examples of how these scenarios could play out. For simplicity, let's assume that the base ticker is Bitcoin (BTC) and the quote ticker is Tether (USDT).

Example 1: Investing with BTC, Price Increases

Let's say User A creates a Dual with 1 BTC, choosing a 24-hour Dual with an entry price of $40,000, and an estimated APR of 200%.

If, at the end of the Dual, the price of BTC has risen to $40,010 (greater than the entry price), the settlement will be in USDT. User A will receive: 40,109.58904 USDT (109.58 USDT Profit)

Example 2: Investing with BTC, Price Remains the Same

If User A creates a Dual with 1 BTC, choosing a 24-hour Dual with an entry price of $40,000 and an estimated APR of 200%.

If, at the end of the Dual, the price of BTC is $40,000 (equal to the entry price), the settlement will be in USDT. User A will receive: 40,109.58904 USDT, representing a profit of 109.58 USDT.

Example 3: Investing with BTC, Price Decreases

If, instead, the price of BTC at the end of the Dual fell to $35,000 (less than the entry price), the settlement would be in BTC. In this case, User A would receive: 1.002739726 (0.002739726 BTC Profit)

So, in a falling market, the Dual Investment product can help to increase the base ticker amount.

Example 4: Investing with USDT, Price Increases

Now, let's consider a scenario where User B uses USDT to create the Dual. User B invests $50,000 USDT, with an entry price for BTC set at $40,000 and an APR of 200%.

If the price of BTC at the end of the Dual rises to $45,000 (above the entry price), User B will receive: 50,136.9863 USDT (136.9863 USDT Profit)

Here, User B's settlement is in USDT since the BTC price exceeded the entry price.

Example 5: Investing with USDT, Price Remains the Same

If User B uses USDT to create a Dual, investing $50,000 USDT with an entry price for BTC set at $40,000 and an estimated APR of 200%.

If, at the end of the Dual, the price of BTC is $40,000 (equal to the entry price), User B will receive 50,136.9863 USDT, representing a profit of 136.9863 USDT.

Example 6: Investing with USDT, Price Decreases

If the price of BTC at the end of the Dual drops to $35,000 (below the entry price), the settlement will be in BTC. In this case, User B would receive: 1.253424658 BTC (0.253424658 BTC Profit)

In this example, User B actually benefits from a decrease in BTC price because the settlement is in BTC.

These scenarios provide a good illustration of how Dual Investment works. While potential returns can be high, users should also be aware of the risks involved, such as market volatility. As always, understanding the product and evaluating your risk tolerance is important when making investment decisions.

Risks and Rewards of Dual Investment

Dual Investment can provide significant potential returns, but it is essential to understand the risks associated with this investment product. Here, we will examine the potential risks and rewards by using illustrative examples.

Reward Scenarios

Scenario 1: Rising Market

If you invest in a Dual Investment product using BTC as your input ticker, and the price of BTC rises above your entry price, you will receive a return in USDT. This can be a lucrative scenario if you would like to sell crypto at a high price or increase your crypto.

For example, if you invest 1 BTC with a entry price of $40,000 and an APR of 200%, and the price of BTC at the end of your 12-hour Dual is $40,010 (above the entry price), you'll receive 40,109.58904 USDT.

Scenario 2: Falling Market

Conversely, if you invest using USDT as your input ticker and the price of BTC falls below your entry price, you'll receive a return in BTC. This can be an excellent opportunity if you predict a slight fall in BTC's price and want to increase your BTC holdings.

For example, if you invest $50,000 USDT with a entry price of $40,000 and an APR of 200%, and the BTC price at the end of your Dual is $38,000 (below the entry price), you'll receive 1.253424658 BTC.

Scenario 3: Flat Market

During a flat market, when there is minimal volatility, the choice of input token doesn't matter significantly. At the end of the Dual, you will earn a profit in either Base Ticker or Quote Ticker, which should be roughly equivalent due to the low volatility.

In such a scenario, you have a unique opportunity to accumulate your assets during periods of low market volatility and thereby increase your wealth.

Risk Scenarios

Scenario 1: Rising Market and BTC as Input Ticker

If you invest in a Dual Investment product using BTC as your input ticker and the price of BTC rises significantly above your entry price, your return will still be calculated based on the entry price, leading to an opportunity cost.

For example, if you invest 1 BTC with a entry price of $40,000, and the price of BTC at the end of your Dual is $41,000 (above the entry price), your return will be based on the entry price, resulting in an opportunity cost of $1,000 minus your earnings from the product.

Scenario 2: Falling Market and USDT as Input Ticker

Similarly, if you invest using USDT as your input ticker, and the price of BTC falls significantly, your return will be in BTC. If the price of BTC continues to fall after the settlement, it could lead to potential losses.

For instance, if you invest $50,000 USDT with an entry price of $40,000, and the price of BTC at the end of your Dual is $30,000 (significantly below the entry price), you'll receive BTC based on the entry price. If the price of BTC continues to fall, it could result in an opportunity cost when you convert back to USDT.

Spread Nuances

When initiating a trade, it's vital to recognize that the price can vary based on the chosen input token. This change stems from slippage that transpires when balancing this specific token within the liquidity pool. Spread, or markup, becomes significant only when the output ticker is not equal to the input ticker. Simply put, if the ticker stays the same, there’s no spread, which is advantageous for traders.

This interplay may appear intricate, but it's essential to be aware of it, especially when thinking of switching the input token to its counterpart. Such a decision accentuates the effect of this spread on the trade's final result. Trading with this understanding in mind can lead to more informed and potentially profitable decisions.

Conclusion

In conclusion, the Dual Investment product can be a highly rewarding investment tool under the right market conditions. However, it's crucial to fully understand the potential risks and market conditions. Always remember that while the rewards can be significant, potential losses can also occur due to market volatility and price fluctuations.

FAQ on Dual Investment 

What is Dual Investment?

Dual Investment is a high-yield financial product that allows investors to earn returns from their cryptocurrency investments. It uses Concentrated Liquidity Market Making (CLMM) from various DEXs (Uniswap, QuickSwap, Pancakeswap and Trader JOE) to generate yield.

How does Dual Investment work?

Dual Investment offers two staking periods: 12 and 24 hours. If the closing price equals or exceeds the entry price, you'll receive your funds and profit in the quote ticker. Conversely, if the closing price falls below the entry price, you'll receive your funds and profit in the base ticker.

What are the base ticker and quote ticker in Dual Investment?

In a Dual Investment, the base ticker is the first ticker represented in the Dual's name (e.g., ETH in an ETH/USDT Dual). You may receive this as a return on investment, based on market conditions. The quote ticker is the second ticker represented in the Dual's name (e.g., USDT in an ETH/USDT Dual), which you might also receive as a return, depending on market conditions.

What are the Entry and Close Prices?

The Entry Price is the price of the base ticker at the start of the Dual. The Close Price is the price of the base ticker at the end of the Dual.

How is the APR calculated in Dual Investment?

APR is the estimated Annual Percentage Rate. It represents the potential return on investment in a year. In Dual Investment, the maximum APR is 220%.

How can I benefit from a rising or falling market with Dual Investment?

In a rising market, if you invest with the base ticker (e.g., BTC), you can receive a return in the quote ticker (e.g., USDT), which could be advantageous if you plan to sell crypto at a high price. In a falling market, investing with the quote ticker (e.g., USDT) could yield a return in the base ticker (e.g., BTC), allowing you to increase your crypto holdings.

Did this answer your question?