Shield First Structured Product — Private Pool Vault

Shield Official
3 min readJan 16, 2022

Shield Private Pool Vault is a yield-focused structure product with promising rewards issued in USDT. It is an interest guaranteed vault. Yes, 100% principal protection with potential APY up to 20% and yields are paid in USDT.

Usually private pools are open to professional market makers that will utilise the isolated pools and hedge risks accordingly. That way, market makers can earn higher returns with manageable risks. Yet, since it requires professional knowledge to conduct the risk hedging and minimum standard to start a private pool, the entry barriers can be high for normal users, thus the potential returns.

Our Private Pool Vault is designed by Shield team, collaborating with professional market makers, to lower this entry barrier, allowing normal users to earn higher yields while minimising risk. This Private Pool Vault is a structured product, opening doors for the public to participate and earn yields from the otherwise complex options market making market, dominated by sophisticated traders and institutions.

How it works

The mechanism is simple. User deposit fund, USDT or SLD in this case, into the vault. The fund in the vault will be utilised by professional market makers to conduct effective deal matching, thus exposing users’ fund to higher yields.

To ensure the safety of the users’ fund, Shield Protocol requires the issuing market makers to deposit certain level of capital as margin requirement and a threshold to limit loss in case of extreme cases.

Users can further boost yields via depositing SLD. The more SLD staked, the higher the rewards boosted. Through staking SLD, users are able to earn boosted yields in USDT straight away. The rewards will be calculated as following.

Total SLD rewards = USDT vault max capacity × Boost Rate

Daily Boost Yields = (Staked SLD / SLD Vault Max Capacity) × Total SLD Rewards / 363

*SLD rewards will be issued in USDT

*Boost Rate is set by issuers

Upon launch of the vault, there is a 7-day subscription period. Users can deposit and withdraw at will during the subscription period. Once subscription ends, the vault will be locked and start accumulating yields. Users are able to deposit/withdraw principal and rewards freely for 24h interval, open window, every 7 days.

Private Pool Vault — 1

There are some details regarding our first Vault.

  1. The complete investment period for Private Pool Vault-1 is 363 days.
  2. The margin deposited by the third-party market maker is 200,000 USDT.
  3. The max capacity of USDT pool is 800,000 USDT. Min deposit 100 USDT each time.
  4. The max capacity of SLD pool is 3,000,000 SLD. Min deposit 100 SLD each time.
  5. The boosted rewards allocated to SLD pool is $100,000 USDT.
  6. Upon launch of the vault, there is a 7-day subscription period. Users can deposit and withdraw at will during the subscription period.
  7. Users are able to deposit/withdraw principal and rewards freely for 24h interval, open window, every 7 days.

Step-by-step Guide

To participate in the Vault:

  1. Go here and connect your wallet.
  2. Specify the amount of assets, minimum 100.00 USDT or SLD each time.
  3. Click “Deposit” and confirm your transaction.

About Shield

Shield is building a unique decentralized protocol based on a fully non-cooperative game for future derivatives infrastructure, enabling global borderless access to finance. Stay connected with Shield on Twitter, Medium, Discord, and Telegram.

--

--

Shield Official

Unleash the potential of your ETH staking with Staking Vault - the ultimate platform for effortless staking and optimal returns.