☘️Fund
Hedge market risks with high yield investment revenue.
Currently, Mole has not launched a fund product on Sui and is currently under development.
Mole currently offers 3 types of 5 funds:
a) Type 1 : Robust stable, dual stable tokens
It contains Bond Fund. It has following advantages:
Extremely stable investing returns by using dual stable tokens
Mole intelligent algorithm will automaticly calculate the best leveraged rate and borrowing interests to maximize investing returns
There is no risk of being liquidated
Profit and loss is based on fiat currency standard
b) Type 2 : Neutralize market volatility risk:
It contains Balanced Funds and Hedge Funds. They have following advantages:
Neutralize market volatility to earn high and stable invest returns
Automatic positions adjustment, users only need one click to purchase, Mole automatically helps to complete all the background operations
There is no risk of being liquidated
Automatic compound interest
Profit and loss is based on fiat currency standard
c) Type 3 : 1x exposure, following mainstream token price fluctuations:
It contains Trend Funds and Index Funds. They have following advantages:
Track price fluctuation of corresponding cryptocurrency, and enjoy not only the long-term value growth of price goes up, but also rich farming rewards.
Automatic positions adjustment, users only need one click to purchase, Mole automatically helps to complete all the background operations
There is no risk of being liquidated
Profit and loss is based on cryptocurrency (such as ETH, BTC) standard
Mole funds make all of the related operations automatic. The industrious and brave little Mole silently endures all the ascetic life of adjusting positions accompanying to the market volatility. It brings you high yield farming income. More important, these funds will not have the risk of liquidation. Amazing world!
Bond Fund
Bond Fund is constructed based on the dual stable tokens trading pair in the leveraged yield farming, which has extremely high robustness.
Bond Fund Tech. Details:
Mole Bond Fund automatically adjusts the optimal leverage and borrowing token by intelligent algorithms to maximize investing revenue. Revenue is affected by the following factors:
Income items:
Yield farm rewards
Transaction fee rewards
Paid items:
Borrowing Interest
Mole calculates the leverage ratio and borrowing token to maximize the profit.
In addition, Mole Bond Fund sets up a profit threshold and time threshold to prevent from frequently adjusting positions and avoid high position adjustment losses.
Balanced Fund
Balanced Fund uses the strategy 'Balanced strategy - Single position' that was described earlier.
Balanced Fund Tech. Details
When you buy balanced fund product, Mole will open one position in leveraged yield farming for you. For example:
Use $100 token as principle collateral, open ETH-USDC position, and borrow ETH with 2x leverage. At this time, your debt is $100 ETH (2x -1x principal =1x)
Principle: $100
Debt: $100 ETH (debt is equivalent to SHORT operation. $100 ETH debt means shorting $100 ETH)
Position: $200 (Holding $100 ETH + $100 USDC for the two paired LP tokens, According to Dex AMM rules, these two paired LP tokens ETH:USDC should be 1:1. Holding position is equivalent to LONG operation)
Summary of exposure:
The holding position of $100 ETH is equal to debt $100 ETH. Holding position is LONG operation, and debt is SHORT operation, so that the net exposure of ETH is 0, and you also holding $100 USDC.
So, the total net exposure is $100 USDC + $0 ETH, which means the market volatility is almost be 0 because the net exposure of ETH is almost 0 and USDC is stable. You can enjoy the stable yield farming incomes without market volatility.
Hedge Fund
Hedge funds are based on the strategy 'Hedge strategy - Dual positions' described earlier.
Hedge Fund Tech. Details
The essence of Mole hedge fund is to hedge the LONG and SHORT exposures of two positions, so that the net exposure of fluctuations are zero. For example:
1) Position 1:
Use $100 token as principle collateral, open ETH-USDC position, and borrow USDC with 3x leverage. At this time, your debt is $200 USDC (3x -1x principal =2x)
Principle : $100
Debt: $200 USDC (debt is equivalent to SHORT operation. $200 USDC debt means shorting $200 USDC)
Position: $300 (holding $150 ETH + $150 USDC. According to Dex AMM rules, these two tokens ETH:USDC should be 1:1. Holding position is equivalent to LONG operation)
Summary of exposure:
holding positions offset shorting debt, Your exposure of position 1 is as following:
LONG $150 ETH + SHORT $50 USDC
2) Position 2:
Open the other ETH-USDC position to hedge the ETH exposure of the first position. Since USDC is a stable token, it does not need to pay much attention to its fluctuation, because its price is approximately anchored at $1.
The second position uses $300 as the principle collateral to open a 3x leveraged position, that is, borrow $600 ETH as the debt.
Principle: $300
Debt: $600 ETH (that is $600 ETH SHORT)
Position: $900 (that is $450 ETH + $450 USDC holding LONG)
Summary of exposure:
holding positions offset shorting debt. Your exposure of position 2 is as following:
SHORT $150 ETH + LONG $450 USDC
3) Position 1 + Position 2:
A magic happened. The net exposure of the first position and the second position was neutralized. LONG position of $150 ETH offset the SHORT position of $150 ETH, so the net exposure of ETH was 0. Similarly, also it has LONG position of $400 USDC. Since USDC is a stable token with stable value, its fluctuation can be ignored. The key ETH fluctuates has been hedged since the net exposure of ETH is 0 with these two positions.
Through the precise operations of these two positions, you can not only hedge the risk of market volatility, but also obtain high yield farming income at leveraged rate. Awesome!
Trend Fund
Trend funds are based on the strategy '1x LONG exposure strategy - Single position' described earlier.
Trend Fund Tech. Details
Trend fund will open one position, and make the net exposure to be 1x LONG position. For example:
Use $100 token as principle collateral, open ETH-USDC position, and borrow USDC with 2x leverage. At this time, your debt is $100 USDC (2x -1x principal =1x)
Principle: $100
Debt: $100 USDC
Position: $200 (that is $100 ETH + $100 USDC holding LONG)
Summary of exposure:
Holding positions offset shorting debt. Your net exposure is:
Net exposure: $100 ETH
You will find that the trend fund value will change accompanying ETH price changes by the same amount as your principle amount ($100). And you will get yield farming rewards at the same time with a leveraged rate ($200 position).
Index Fund
Index funds are based on the strategy '1x LONG exposure strategy - Dual positions' described earlier.
Index Fund Tech. Details
The essence of Mole index fund is to aggregate exposures of two farming positions, so that the net exposure is 1x LONG cryptocurrency. For example:
1) Position 1:
Use $100 token as principle collateral, open ETH-USDC position, and borrow ETH with 3x leverage. At this time, your debt is $200 ETH (3x -1x principal =2x)
Principle: $100
Debt: $200 ETH (debt is equivalent to SHORT operation. $200 ETH debt means shorting $200 ETH)
Position: $300 (holding $150 ETH + $150 USDC. According to Dex AMM rules, these two tokens ETH:USDC should be 1:1. Holding position is equivalent to LONG operation)
Summary of exposure:
Holding positions offset shorting debt, Your position 1 is as following:
SHORT $50 ETH + LONG $150 USDC.
2) Position 2:
Open the other ETH-USDC position.
The second position uses $300 as the principle collateral to open a 3x leveraged position, that is, borrow $600 USDC as the debt.
Principle: $300
Debt: $600 USDC (that is $600 USDC SHORT)
Position: $900 (that is $450 ETH + $450 USDC holding LONG)
Summary of exposure:
Holding positions offset shorting debt. Your position 2 is as following:
LONG $450 ETH + SHORT $150 USDC
3) Position 1 + Position 2:
The net exposure is: LONG $400 ETH. It is just the same as the initial principle $400.
With index fund, you can earn not only the long-term value growth of cryptocurrency when token price goes up, but also rich farming rewards.
Cryptocurrency price goes up and down with market volatility. Mole will help you rebalance the two positions so that they can stay in 1x LONG exposure.
Warning
If you are confident in mainstream cryptocurrency, and firmly believe the price of top cryptocurrency will rise in the future, then trend fund and index fund are good choices for you. It not only brings returns from the rise of price, but also provides yield farming rewards.
If you are not optimistic about the future of mainstream cryptocurrency, please be careful with trend fund and index fund, because they will be impacted when the cryptocurrency price goes down.
Trend fund and index fund are much better than simply hold the cryptocurrency, because they have extra yield farming rewards, which will compensate the loss in case of price going down.
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