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Invictus Capital is a market-leading crypto-native asset management company specializing in blockchain technologies. Boasting a stellar four-year track record and ~$180m AUM, Invictus Capital’s suite of investment products includes Crypto20 (C20), the world’s first tokenized crypto index fund.
Crypto’s journey of becoming a once-in-a-generation alternative asset class has been a wild ride. New offerings are a dime a dozen, innovative technologies are rapidly improving, and competition is fierce. Higher levels of competition and extended retail and institutional adoption are pressuring crypto companies to achieve market leader status within particular niches. The companies that create and sustain these unique selling points are not only prospering but are providing lucrative opportunities for smarter investors to take advantage of. The recently launched Invictus Yield Vault provides smarter investors such an opportunity.
The Invictus Yield Vault allows qualifying lenders the opportunity to lend Invictus Alpha, Invictus Capital’s trading division, a minimum of $50,000 equivalent BTC, ETH and/or Stablecoins for market-leading interest rates. The interest rates are fixed for the entire loan’s term, compounded monthly, and paid in-kind.
Loaned Coins are used as collateral by Invictus Alpha to fund their market-neutral arbitrage strategies. These delta-neutral strategies ensure that capital drawdown risk is near zero. The interest earned on the loaned Coins is not contingent on the outcome of individual trading strategies and, at the end of the fixed-term period, lenders will be paid interest together with the return of their loaned Coins. For example, a loan of 10 BTC for 18 months at 12% compounded monthly will accrue ~1.96 BTC over the 18 months — an end total of ~11.96 BTC.
For an extremely limited period, Invictus Alpha has substantially improved their already competitive Yield Vault interest rates to all-time highs due to the recent bullish market trend and increased volatility. Over the past three months, the volatility of the crypto market has been relatively subdued. Using Bitcoin as a bellwether for the crypto market as a whole, prices have fluctuated between $31,000 and $42,000 — only recently breaking through this upper limit. The Crypto Volatility Index (CVI) provides an estimate of the expected volatility of BTC, similar to the Chicago Board Options Exchange’s Volatility Index (VIX) for the S&P 500’s expected volatility. The greater the CVI’s index value, the more volatile BTC is expected to be. After BTC broke through its recent upper bound, the CVI Index spiked to a value of 113, compared to 80 just three months prior.
The fixed nature of our rates is a unique feature within the market and allows discerning investors opportunities to capitalize on crypto’s recent uptick. Today, our competitors rarely explain why their interest rates change — previously citing poor market conditions and tiered systems as covers for the variability. Under this model our competitors’ investors can be exposed to significant reinvestment rate risk, potentially hampering their annual percentage return (APR) — a smarter investor would seek to avoid this.
The table below lists three potential competitors’ variable in-kind annual rates, which are compared to the Invictus Yield Vault’s fixed, compounded monthly, and paid in-kind annual rates for a loan of $50,000:
* Rates are contingent on the market’s conditions and the Coin’s demand. Poor market conditions and demand can yield lower returns. Also, note that investors receive a lower return if the interest is paid in-kind vs paid in Competitor 1’s tokens.
** Rates differ based on your ownership of Competitor 2’s tokens (tier-based system). The fewer Competitor 2 tokens owned, the lower the interest rate received.
*** Rates are contingent on the market’s conditions. Poor market conditions can yield lower returns.
The Invictus Yield Vault is a notable stand-out. Eligibility to the Yield Vault does not require any pre-ownership of Invictus Capital fund tokens, but rather a successfully KYC’d and AML’d Invictus Account. To create an Invictus Account today, click here.
The Yield Vault is far more than an opportunity to enhance your returns. The Yield Vault provides smarter investors an opportunity to diversify and adequately gauge their portfolio’s risk-adjusted returns. For investors who are HOLDing and are bullish on crypto, the Invictus Yield Vault provides an ideal Coin lending product.
If you are interested in the Invictus Yield Vault or would like to find more information, read our FAQs or contact our Yield Vault Team, please visit our webpage.
