Proposal for a new financial Derivative Market: Dual Investment

Summary Dual investment (DI) is a financial product that allows traders to set the price at which to buy or sell an asset at a certain date, while earning returns along the way. Currently, there exist different versions of this product, being offered by both CeFi (ByBit, Binance, etc.) and DeFi exchanges (Thetanuts, etc). One of the main advantages of DI is that it is really easy to use, even by less-experienced investors.

A good approach to get the essence of dual investment is to think of it as a limit order to buy an asset at a lower price or to sell it at a higher price, while getting an extra yield in return.

Description DI is a bi-directional instrument that offers basically two alternatives:

1. Buy low
2. Sell high

User will have to set the following variables:

Initial amount: the amount of tokens the user wants to buy or sell. Target price: the price at which the trader wants to sell or buy the product. The target price is fixed and will not change. Settlement date: the date at which the product will end. If at maturity the target price is reached, the tokens previously deposited in the vault will be sold or bought at the specified price.

Why to choose the Buy Low Side? To use their existing stablecoin holdings to buy crypto at a desired price, on a desired date, and also make additional earnings. To accumulate more stablecoins through interest income.

Why to choose the Sell High Side? To sell their existing crypto holdings at a desired price on a desired date and also make additional earnings. To Accumulate more crypto through interest income.