Welcome back, Brodigies!

You’re now diving into the third edition of our ProdigyFi Product 101 Series — your go-to guide for all things ProdigyFi. If you’re new here, we recommend starting with our first deep dive on Dual Currency Investments (DCIs) here. For returning readers, let’s continue where we left off.

In this edition, we move beyond the basics. You know what a DCI is, but how do you actually use one? When does it make sense? And how does it compare to other yield strategies in DeFi? That’s what we’re here to explore.

Dual Currency Investments (DCIs) combine yield and strategy by allowing users to earn passive income while setting specific buy or sell targets using Linked Prices and Expiration Dates.

ProdigyFi brings structure to DeFi, making complex trading tools accessible through an easy-to-use platform that requires no active trading or technical setup.

DCIs work in a variety of market conditions — whether the market is trending, consolidating, or volatile — giving users a flexible tool to generate returns and position for future trades.

Strategic use cases include ‘Buy the Dip’, ‘Earn While Waiting’, and ‘Passive Accumulation’, which offer practical approaches for different user profiles and risk appetites.

DCIs cater to a wide range of users, from DeFi newcomers and passive earners to active traders, goal-based investors, and DAOs managing idle capital.

Risks include price slippage, lack of principal protection, and no early withdrawal, so it’s important to assess your strategy and risk tolerance before subscribing.

DCIs aren’t just about increasing your APY (though, yes please) — they’re about using market conditions to your advantage. By accepting currency risk, investors can unlock enhanced returns and tailor strategies around their individual goals. It’s a methodical way to generate yield with purpose.

To recap, a Dual Currency Investment (DCI) is a structured product that combines a fixed deposit with a currency option. In practice, this means you deposit one asset and earn a higher return based on whether the market price of a paired asset reaches a predetermined level (known as the linked price) at expiry.

At settlement, your return is delivered in either the base or alternate currency depending on market performance, along with the earned yield. This added currency flexibility is what allows DCIs to outperform traditional deposits.

Let’s say you deposit USDC into a USDC/BTC DCI vault.

• You choose a 1-week term and agree on a BTC price — say $100,000 (the linked price).

• You earn a higher return than a standard deposit — maybe 20% APY.

• At expiry, what you get depends on what linked price BTC is at:

Scenario 1: BTC stays above $100,000

You get your USDC back, plus the yield you earned.

Scenario 2: BTC is at or below $100,000

You get paid out in BTC instead, your USDC gets swapped to BTC at $100,000 — plus your yield (also in BTC).

DCIs aren’t just another way to earn yield. Understanding the benefits of DCIs can help you determine if this product aligns with your financial goals. Originally popularised by TradFi banks and CeFi exchanges, they’re now making their way into DeFi — and for good reason.

Enhanced Yield Potential
DCIs compensate investors for taking on currency exposure. Idle capital can be put to work, potentially earning better returns than typical lending or staking platforms.

Currency Exposure Management
Have upcoming expenses in another currency or asset? DCIs allow users to earn while setting strategic buy or sell levels.

Short-Term Investment Horizon
With durations ranging from one week to a few months, DCIs give investors flexibility to adapt positions without long-term lock-ins.

Customisation
Users can tailor each vault based on token pair, APY, linked price, and expiry — aligning with their specific market view.

DCIs are kinda like that one-size-fits-most hoodie. Not for everyone, but pretty versatile:

Yield-Oriented Users
If you’re holding stablecoins and seeking productive yield strategies, DCIs offer a compelling route.

Goal-Based Investors
If you aim to buy or sell an asset at a specific price in the future, DCIs let you set that target and earn along the way.

Market-Savvy Traders
For those with strong views on price direction or volatility, DCIs can provide added returns on those forecasts.

DAOs and Treasury Managers
Idle capital in treasury accounts can be deployed more efficiently through structured returns with built-in logic.

Timing is crucial in investment decisions, and DCIs are no exception. Here are scenarios where DCIs might be particularly useful:

Stable or Range-Bound Conditions

• DCIs thrive when markets are consolidating or moving predictably.

Short-Term Yield Opportunities

• If you’re in between trades or looking to earn while waiting for a market setup, DCIs offer low-effort options.

Strategic Diversification

• Use DCIs to add a non-correlated income stream to your DeFi portfolio.

Recognising these opportunities can help investors make timely and strategic use of DCIs.

We’ve seen some creative uses of DCIs from the community, and whether you’re farming from your phone or charting on dual monitors, there’s a play here for you:

For: Investors bullish on an asset, waiting for an entry point.
How it works: Set a linked price below the current market value. If reached at expiry, you acquire the asset at a discount and earn yield. If not, you keep your original asset plus the yield.

For: Stablecoin holders with low conversion risk appetite.
How it works: Earn yield while positioning for a possible conversion. If your linked price is hit, you receive the alternate asset. If not, your original token plus yield is returned.

For: Long-term holders.
How it works: Deploy capital into multiple DCIs with varied strikes and expirations. This strategy allows you to average into positions gradually while earning yield along the way.

Please note that the DeFi strategies mentioned here are for informational purposes only and do not constitute financial advice (NFA). Always do your own research.

Before subscribing to or creating a vault, here are four key parameters:

Currency Pair Selection

• Choose asset pairs that align with your market outlook or treasury goals.

Linked Price (Strike Rate)

• Set the target price where you’re comfortable buying or selling. Closer-to-spot rates often offer higher yields.

Expiration Date (Tenor)

• Match the vault duration to your liquidity timeline. Shorter vaults = faster access; longer vaults = higher potential APY.

Subscription Amount

• Determine how much of your Investment Token (e.g., USDC) you want to allocate to the vault.

As with any DeFi product, DCIs carry trade-offs:

• Market Risk: If the linked price is reached and the asset depreciates post-settlement, your holdings could lose value.

• Principal Risk: DCIs are not principal-protected. What you receive depends on price movement and market conditions.

• Liquidity Risk: Vaults are locked until expiry. Early exit is not available.

• Platform Risk: While ProdigyFi uses audited smart contracts and secure oracles, no protocol is risk-free.

Always consider your risk appetite and allocate capital accordingly.

Dual Currency Investments on ProdigyFi are more than just another DeFi yield opportunity — they’re a tool designed for clarity, control, and strategic growth.

Whether you’re looking to earn passively on your stablecoins, accumulate more ETH, or take advantage of market dips and rallies, DCIs offer a smart, programmable approach to doing it — without needing to constantly monitor the markets.

By combining transparency, flexibility, and a user-friendly experience, ProdigyFi makes it easier for anyone — from DeFi first-timers to experienced traders — to tap into structured strategies that were once out of reach.

So whether you’re planning your next move, building a long-term position, or just getting started, ProdigyFi gives you the tools to do it confidently.

Ready to explore more? Stick around for the next edition of our ProdigyFi Product 101 Series, where we’ll guide you through how to start using the platform and make the most of your yield strategy.

Until then, yield hard and stay safe.

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