🌌Andromeda - Multivariant Yield
Index Structured Products
Last updated
Index Structured Products
Last updated
We are excited to propose a new approach to vaults that goes beyond automated liquidity provider (LP) pools. Specifically, a use case for an index product. Similar to an on-chain hedge fund, these multi-asset vaults employ complex strategies to generate multivariate yields.
Andromeda is an ISVault that combines Orbital with a multi-asset vault approach.
Andromeda’s base layer uses the same approach as Orbital, an advanced auto-compounding mechanism, to generate higher returns for both LP tokens and stablecoins. It provides users, DAOs, and investment funds with access to safe yield on Arbitrum-specific assets.
Andromedea offers a simple, reliable, and diversified way to generate yield across multiple protocols in one vault. Each vault combines up to three LP strategies, generating governance token yield and/or LP rewards in multiple protocols. Users can enter the vault using any EVM token and cash out with any EVM token.
Andromeda currently have two types of ISVaults
Bluechip Index Vaults Strategy
Degen Index Vaults Strategy
V2 of Parallax will allow users in certain vault strategies to add leverage using their collateral. This new feature will unlock capital efficiency, providing users with more options to optimize their returns and create more opportunities for yield generation. By allowing users to add leverage using their collateral, they can potentially increase their returns without having to lock up additional capital. This can help users to generate more yield with less capital, making their investments more efficient and effective.
We’ll be releasing more information about this feature in the v2 roadmap.
Our Blue-chip index vaults offer a safe, convenient method to get exposure to Arbitrum products.
Let’s take a look at an example: 👇
Vault 1 (work in progress)
GMX — GMX WETH/USDC — Sushiswap
Total APY — 30–38%
Users can ZAP into the vault with any stablecoin
The ZAP transaction will route deposited funds via our audited vaults to the designated strategies
Users can generate rewards and auto-compound multiple times a day
With just one click, users can exit their position into their preferred stablecoin
Our unique approach to swapping helps minimize slippage.
Just like the name says, these are more degen in nature. Degen vaults will be given a higher risk rating while not compromising security. That said, we also want to exercise caution to users as they ape into it at their own discretion.
A higher safety score indicates that 60–70% of the vault is made up of blue chip assets from LP pairs like Sushi/Uniswap, with the remaining 30–40% coming from newer, higher APY protocols.
We are constantly exploring new degen vaults and protocols that we can integrate with, so stay tuned for updates on exciting new investment opportunities.
In summary, the goal of degen vaults is to provide users with exposure to multiple Arbitrum LP rewards in one simple, safe, and audited vault, while also offering a range of investment options with varying levels of risk and yield potential.
