ethere.al | a decentralized cross-chain platform for minting synthetic hedges for real-world volatility events
Synthetic Asset Ecosystem
ISA | Interchangeable Synthetic Asset
The platform’s inflationary token used to mint the hedges on the platform. During the mintage of any synthetic asset on the platform, ISA is 100% burned at a rate established based on the price of the asset at the time of the mint. It has a soft cap of 120m which can later be changed by a governance vote with an initial supply of 25m. Emissions stand at 5 ISA per block, which equates to a 1.8 year timeline before max supply is reached. At that time, the supply can be voted to be raised and emissions continued or the cap can remain and partial burns during the minting of synthetic assets can be routed back to farmers to provide yields. ISA will also play a roll in future lending partnerships.
eTY | 3x, 5x, 10x Leveraged US Ten Year Yield Hedge
With the divergence of the BTC inflation hedge argument, we have developed a synthetic asset that tracks the US Ten Year Rate at a leveraged rate between 3-10x. The asset is minted using ISA, of which, 100% is burned. The resulting asset will move in accordance to the yield. A fee of 0.25% applies at the time of mint which rewards the LP providers. Beyond hedging your portfolio against inflation, you can pair eTY with several other assets and provide liquidity under the farm section. Rewards are given in ISA. Instead of a redeem function, eTY can be swapped on the platform with a fee of 2.5% which in part returns to the liquidity providers as well as buying back and burning ISA.
eITY | Inverse 3x, 5x, 10x Leveraged US Ten Year Yield Hedge
Similar to eTY, eITY allows you mint inverse leveraged assets that inversely track the US Ten Year Yield. The same mintage, swap, and burn dynamics apply to eITY. However, when paired with eTY, one can minimize short-term risk as the assets move tick per tick against one another. While this exposes the position to impermanent loss, depending on the leverage used while minting, this is usually quickly offset by ISA yields. Furthermore, fusing these two together in our farm section allows additional short-term flexibility for your personal hedging goals.
eUSD | Platform Specific Commerce Backed Stable
In partnership with Wault Finance, we have brought the same innovative stable coin mechanism to ethere.al. eUSD is minted using 88% WUSD and 12% ISA. This breaks down to a backing per dollar minted of 0.792% USDT, 0.088% Wex, and 12% ISA. The same lending and stability mechanisms of WUSD pioneered by Wault apply to eUSD – you can read more about these systems by clicking here. You can also view farms both on Wault Finance and our own farm section to receive attractive yields on multiple eUSD pairs paid in either ISA or Wex.
eBTC - eETH | Inverse Large Cap Assets
Using similar mint mechanics as eTY and eITY, one is able to mint two separate large cap inverse hedges using ISA. Rather than opening a leveraged farm to short either BTC or ETH, with a click of a button you are able to create a synthetic asset that inversely follows the price action of the underlying token. As such, a higher yield rate can be collected over time which will decrease your overall risk on holding either the inverse or underlying asset. Additional large cap tokens will be added in the future once our platform achieves greater liquidity. These additions can also be decided by the community through future governance.
Non Traditional Hedges
Coming tentatively in the first half of 2022 we will introduce the ability to mint specific hedges against real world volatility events that are difficult to hedge using traditional financial assets such as volatility killing option spreads. These community driven asset classes will be minted using ISA and carry their own risks and rewards to further diversify your portfolio hedges. More information will be released as logistics are finalized and feasibility tests are completed January of 2022. Follow our announcement telegram channel to stay up to date with the latest developments platform wide.
Partnered with Wault Finance and Audited by CertiK
Synthetic World Event Hedges
Additional use cases for ISA through synthetic world event hedges are on the schedule for Q1, 2022. When governance is implemented in Q4, 2022, these events can be voted in and specific hedges will be created for those events.
NFT Holder Pools and Hedges
In an ever greater attempt to fuse traditional investment vehicles with crypto, we will be introducing NFT holder specific farms in 2022. These NFTs will immortalize tangible works of rare art which will be available to purchase using ISA and unlock additional pools which will help hedge any possible depreciation risks associated with art investing. In the future, additional modern day artists could be added to the platform to ensure a continual selection of works. Q2, 2022.
Lending Partnership with Wault Finance
Extending beyond our stable coin partnership, we will introduce lending in unison with Wault Finance to offer additional avenues to earn revenue from your ISA minted assets. Q2/Q3 2022.
Governance will be added which will have input over the soft cap supply of ISA, world hedges, NFT artists, and future partnerships. Votes will be weighted per the total unit count held in your wallet at the time of casting your vote. Locked voting pools will last 7-10 and be implemented in Q4, 2022.