dgnETH

Strategy Summary

DgnETH is for those who strive for a balance between risk and reward, embodying the essence of D2’s philosophy, but with a clear “risk-on” bias.

Higher Upside on Manias: In euphoric market phases, dgnETH could yield 2X to 4X ETH upside.

ETH-like Downside Risk: The strategy incorporates ‘implied puts’ as a protective measure when exposure exceeds 100%, designed to replicate the performance of directly holding ETH, particularly in safeguarding against the drastic losses associated with a 4X leveraged position during a 25% market downturn.

Combating Theta: Incorporating call options into a structured product is common in traditional finance, but optionality comes at a cost, necessitating skilled active trading to combat theta decay.

dgnETH innovatively repackages yield from LRTs in Pendle to amplify its upside, a strategy demanding careful analysis of the PT and YT relationship — where D2’s modeling prowess shines.