DeFi Protocol Cega Debuts 'Vault Token Market' to Facilitate Seamless Investing

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Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Cega's vault token market eliminates the protocol's 27-day lock-up period, allowing users to withdraw their vault token deposits when required.The Vault Token Market will boost liquidity, utility and flexibility of users' investments, Cega said in a press release shared with CoinDesk.decentralized exotic-derivatives protocol. It allows holders of dollar-pegged stablecoin USDC to earn yields while bypassing the need for active management of positions.

Each vault runs the strategy for 27 days, beginning every Wednesday at 1:00 UTC, simplifying the investment process. For issuers, however, that means their USDC is locked into the vault for 27 days, keeping them from accessing their funds. The liquidity barrier limits users' ability to react to changing market conditions and meet financial needs."With the VTM, users can exit from their trading positions early, without waiting for 27 days.

VTM is open to everyone, including market makers and yield farmers, allowing market participants to buy and sell the Cega vault tokens in the open market. VTM's benchmark price feature ensures fair value for vault tokens and the best execution when selling them or looking to snap up coins at discounted positions.

"VTM opens the door to a wide range of strategic use cases, from liquid staking and restaking to collateralized lending/borrowing. Off-ramping is just the first step in creating robust ecosystem opportunities for Cega vault tokens," the press release said. 14:21 UTC: Updates third para to say users can deposits USDC and other assets like ETH and wstETH to vaults.in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

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