Flynt finance, a cryptocurrency financial services company in Singapore, launched a platform for crypto-structured products.
Flynt Launches Industry’s Highest Yield Product on Bitcoin
Flynt finance, a cryptocurrency financial services company in Singapore, launched a platform for crypto-structured products.
The up to 50% APY high returns on Flynt have gained powerful interest from crypto enthusiasts, most especially during the bear market when predictability is difficult.
Often, cryptocurrency markets are thought of as a good choice for high-risk, high-return owing to the volatile price movements. It can be complex to manage the risk for such assets, especially those that don’t have a financial background.
A well-known way to hedge is to make use of options by entering into positions that are opposite to current asset holding.
There are also several structured products that provide yield accompanied by combined strategies of options, lending, and futures.
The cash-covered put strategy or covered call strategy is one of the most popular and simplest structured products. The legendary Warren Buffet earned premiums on Coca-Cola stocks using this.
Since 2001, the rush to offer covered call strategies to several cryptocurrencies for yield-hungry crypto investors has increased.
Since its inception, these strategies have grown rapidly and have surprisingly done well during the more recent downturn.
After extremely thorough research and backtesting several strategies, the team at Flynt reached a decision to launch their own structured product strategy, the “BTC Covered Call Strategy x5.”
What this strategy does is sell call options weekly and reinvest all the premium earned into the following week.
A huge differentiator of Flynt’s product is Flynt's use of leverage. It uses up to 5 times leverage on its strategies to increase the returns and decrease the chance of undergoing loss by selecting an OTM strike price.
According to the backtests, the outcome is an average APR of 47%, which includes losses, compared to the normal industry average of about 15%, which does not include losses.
CEO of Flynt Finance, David Seo, mentions that “for most people, a non-leveraged covered call strategy should be just fine, but for those that would like to take more risk for higher returns should definitely give Flynt a try. Through Flynt, we aim to provide access to crypto investment strategies for a variety of risk profiles.”