Index Structured Products
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 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.
Andromeda 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 has two types of ISVaults:
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: 👇