Algorand Foundation pioneers Defi 2.0 on ThetaNuts

The Algorand Foundation has announced the launch of ‘ALGO vaults’ on Thetanuts.finance with QCP Capital as the market maker.

Thetanuts is a DeFi derivatives protocol that provides easy access to institutional-grade strategies through structured product vaults. The protocol has BTC, ETH and the widest selection of altcoin option vaults.

The foundation, recently used by El Salvador for developing its blockchain infrastructure, claim vaults generate high organic returns through options trading.

Coupled with the typical yield from native token incentives, Thetanuts boasts one of the highest annual percentage yields (APY) around for ALGO.

Essential layer for sustainable DeFi apps

According to Sean Lee, CEO of the Algorand Foundation, the company already has a strong community that is constantly seeking yield on its ALGO and stablecoin holdings.

“DeFi is central to fulfilling the vision of the borderless economy, so we are thrilled by the opportunity to work with QCP and Thetanuts to support the creation of a vibrant on-chain ALGO options market,” he said.

“This is just the first of many steps towards establishing Algorand as an essential layer for innovative and sustainable DeFi applications.”

Lee added the ALGO vaults provide a new scalable source of alpha through Thetanuts’ hybrid DeFi model, where investment, collateral management and settlement are carried out on-chain while risk and leverage is managed off-chain.

Darius Sit, co-founder and CIO of QCP Capital commented that, as early backers of Algorand, QCP naturally runs a large ALGO options book (traded OTC).

“The vaults on Thetanuts add a new dimension to the Algo vol market by bringing increased access, transparency, efficiency and scalability for both investors and market makers.”