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fija USDC GMX Strategy

Gain­ing access to high DeFi yields through fija’s ful­ly auto­mat­ed & delta-neu­tral strate­gies, pack­aged as a reg­u­lat­ed security

This strat­e­gy gen­er­ates dynam­ic returns by pro­vid­ing USDC liq­uid­i­ty, earn­ing from trad­ing and bor­row­ing fees, while smart­ly hedg­ing against price fluc­tu­a­tions. Seize this oppor­tu­ni­ty of the high returns DeFi has to offer in a ful­ly com­pli­ant and very sim­ple way — through fija.

With robust risk man­age­ment trig­gers and auto­mat­ic rebal­anc­ing mech­a­nisms, your invest­ment stays pro­tect­ed and opti­mized for max­i­mum efficiency.

 

The strat­e­gy oper­ates on GMX, a lead­ing DeFi plat­form, by pro­vid­ing liq­uid­i­ty in form of USDC to the ETH-USDC pool. Returns are gen­er­at­ed through trad­ing and bor­row­ing activ­i­ties of traders in the pool. To off­set Ethereum price fluc­tu­a­tions, the strat­e­gy builds a hedge on Aave with a short position.

 

Invest in the fija USDC GMX Strat­e­gy and lever­age the pow­er of top DeFi pro­to­cols at the click of a but­ton — ful­ly regulated.

HIGHLIGHTS

Ful­ly auto­mat­ed and struc­tured access to high DeFi yields >15% p.a.
fija is the first to offer a ful­ly reg­u­lat­ed access to DeFi — struc­tured in a bear­er bond
No trad­ing activ­i­ties involved — Ful­ly delta-neu­tral strategy
Instant and full with­drawa­bil­i­ty anytime
Ful­ly audit­ed smart con­tracts that can only be accessed by whitelist­ed wal­lets to increase security
The invest­ment can only and at any time be with­drawn by the investor
Full trans­paren­cy through on-chain monitoring

FIJA STRATEGY OVERVIEW

High yields by pro­vid­ing US-Dol­lar-based sta­ble­coin liq­uid­i­ty to GMX liq­uid­i­ty pools and hedg­ing volatil­i­ty and open inter­est risks on Aave for a ful­ly delta-neu­tral strategy.

 

fija USDC GMX Strategy

The fija USDC GMX Strat­e­gy is based on the decen­tral­ized per­pet­u­al exchange GMX that oper­ates on the Arbi­trum and Avalanche net­works. The plat­form has under­gone an update to V2 in 2023 (read more about V2 here) and since then has been one of the most used plat­forms for traders and liq­uid­i­ty providers in the DeFi space.

 

Key Facts:

• Blockchain: Arbitrum
• Deposit Cur­ren­cy: USDC
• Tokens used: USDC, ETH
• Pro­to­cols used: GMX, AAVE

DETAILED STRATEGY DESCRIPTION

Liq­uid­i­ty pro­vid­ing on GMX

To gen­er­ate a return, the strat­e­gy pro­vides liq­uid­i­ty in the deposit cur­ren­cy USDC to the GMX liq­uid­i­ty pool ETH-USDC which facil­i­tates var­i­ous activ­i­ties for traders includ­ing long/short posi­tions and swap trades. Pro­vid­ing liq­uid­i­ty gen­er­ates returns from sev­er­al streams such as trad­ing & swap fees, trad­er liq­ui­da­tions and bor­row­ing fees that traders pay for using the pro­vid­ed liq­uid­i­ty. The annu­al return gen­er­at­ed by the pool is dynam­ic and depen­dent on the trad­ing activ­i­ty with­in the GMX ecosys­tem. The more trad­ing vol­ume gen­er­at­ed by traders, the high­er the return of the strategy.

Hedg­ing on Aave

By pro­vid­ing liq­uid­i­ty to the ETH-USDC pool on GMX, part of the deposit cur­ren­cy USDC gets auto­mat­i­cal­ly swapped to ETH as the pool is com­posed of both assets. As the strat­e­gy is delta­ne­u­tral with regards to USDC, it’s imper­a­tive to neu­tral­ize any val­ue fluc­tu­a­tions with­in the ETHUSDC pool. This means that the strat­e­gy should be iso­lat­ed from any direct expo­sure to the Ethereum price. The strat­e­gy achieves this through a hedg­ing mech­a­nism uti­liz­ing the decen­tral­ized lend­ing plat­form Aave, where ETH is bor­rowed and sold against USDC pro­vid­ed as col­lat­er­al, effec­tive­ly cre­at­ing a short posi­tion for ETH.

 

While this pro­ce­dure is a cap­i­tal-effi­cient way to elim­i­nate the Ethereum price expo­sure of the strat­e­gy, there is one more aspect that needs to be con­sid­ered to achieve delta-neu­tral­i­ty. The liq­uid­i­ty pools serve as coun­ter­par­ty for users on GMX trad­ing the respec­tive mar­ket pairs (in this case ETH-USDC). This means that liq­uid­i­ty providers stand to gain when traders incur loss­es and vice ver­sa. As the posi­tions of traders and hence their wins and loss­es con­tin­u­ous­ly change, the strat­e­gy con­stant­ly mon­i­tors the open inter­est of the trad­ing pair which is a clear sign if traders are cur­rent­ly long or short on the trad­ing pair. The net effect of the open inter­est on the liq­uid­i­ty pool is includ­ed in the hedg­ing mech­a­nism, effec­tive­ly reduc­ing or increas­ing it depend­ing on the net posi­tions of traders.

Risk Man­age­ment & Optimization

To ensure the delta-neu­tral­i­ty of the strat­e­gy and the effec­tive­ness of the hedge mech­a­nism, the strat­e­gy has two dis­tinct rebal­anc­ing mechan­ics and trig­gers. The strat­e­gy con­stant­ly mon­i­tors the effec­tive expo­sure to the Ethereum price (which is intend­ed to be 0%). Should that ETH expo­sure become >2% of the total strat­e­gy val­ue, the rebal­anc­ing mech­a­nism is trig­gered, the hedge adjust­ed, and the ETH expo­sure neu­tral­ized. The sec­ond rebal­anc­ing mechan­ic con­cerns the hedge mech­a­nism itself. The effi­cien­cy of the hedge posi­tion on Aave can be tracked using their so-called Health Fac­tor. The Health Fac­tor mea­sures the rela­tion between pro­vid­ed col­lat­er­al and loans that are bor­rowed against that col­lat­er­al. The Health Fac­tor has a low­er lim­it where posi­tions with a Health Fac­tor <1 are sub­ject to liq­ui­da­tion. The strat­e­gy has a defined tar­get Health Fac­tor of 1.5. The rebal­anc­ing of the strat­e­gy will trig­ger should the Health Fac­tor fall below the val­ue of 1.2 to avoid liq­ui­da­tion. On the upper side, the strat­e­gy will also rebal­ance should the Health Fac­tor rise above 1.7 to ensure max­i­mum cap­i­tal efficiency.

 

The strat­e­gy also uti­lizes two safe­ty mech­a­nisms that trig­ger an exit of the strat­e­gy once acti­vat­ed. The first mech­a­nism trig­gers should the USDC sta­ble­coin lose its peg to the US dol­lar by more then 2%. The sec­ond mech­a­nism trig­gers if the the strat­e­gy gains expo­sure of more then 20% of the total val­ue in the ETH-USDC pool on GMX.

COMPANY OVERVIEW

fija builds the infra­struc­ture for investors to earn high yields in Decen­tral­ized Finance (DeFi) in a com­pli­ant and straight­for­ward man­ner with­out the com­plex­i­ties of blockchain tech­nol­o­gy. Investors can eas­i­ly earn inter­est from DeFi lend­ing and liq­uid­i­ty pro­to­cols by pur­chas­ing fija’s reg­u­lat­ed secu­ri­ty token. As a bridge between Tra­di­tion­al Finance (Trad­i­Fi) and DeFi, fija enables every­one to earn high yields in DeFi with­out engag­ing in the intri­ca­cies of decen­tral­ized finance.

• Found­ed in 2022
• Munich based
• Sea­soned founder team

 

For detailed infor­ma­tion about the emis­sions and the prod­ucts offered by fija Cap­i­tal please vis­it the web­site https://fija.finance/ or https://fijacapital.com/

MANAGEMENT TEAM

Christoph Scholze, Lieven Haus­pie and Tim Fed­er­spiel (from left to right)

Christoph Scholze

Co-Founder & CEO

• Over­sees Sales, Busi­ness Devel­op­ment & Product
• Build pre­vi­ous com­pa­nies in fin­tech and reg­u­lat­ed industries
• 15 years of expe­ri­ence as Direc­tor of Busi­ness Devel­op­ment and Head of Prod­uct for lead­ing coop­er­a­tions such as Ber­tels­mann and CHECK24

Lieven Haus­pie

Co-Founder & CTO

• Over­sees the fija tech­nol­o­gy infra­struc­ture and leads the fija tech team.
• Brings 20 years of expe­ri­ence in build­ing and scal­ing soft­ware devel­op­ment teams across var­i­ous industries.
• For­mer VP of Tech­nol­o­gy at Finoa and VP of Engi­neer­ing at Honeywell/Elster.
• Proven track record of build­ing and scal­ing tech teams from the ground up to over 100 members.

Tim Fed­er­spiel

Co-Founder & COO

• Over­sees the oper­a­tional tasks with­in fija and is respon­si­ble for the DeFi strategies
• 7 years expe­ri­ence in the cryp­to and DeFi space with focus on yield strategies
• 4 years expe­ri­ence in Strat­e­gy Con­sult­ing at a Big4 company
• Active ear­ly investor in a range of cryp­to & web3 projects

TOKEN CLASSIFICATION

The bonds are secu­ri­ties with­out a fixed term, with­out cur­rent inter­est and with­out fixed repay­ment. The bonds to be issued are each no-par val­ue, uncer­tifi­cat­ed, sub­or­di­nat­ed, token-based bonds that are sub­ject to a pre-insol­ven­cy enforce­ment block. For each bond to be issued, an issue-relat­ed fija Token with an issue-spe­cif­ic denom­i­na­tion (the “fija Token”) will be issued by the Issuer to the investors (the “Investors” or “Investor”) rep­re­sent­ing the rights under the bond.

 

To gen­er­ate the fija Tokens, the Issuer has cre­at­ed a smart con­tract that links the fija Tokens to the bonds. This smart con­tract is called the “Vault Smart Con­tract” by the Issuer. A reg­is­ter is stored in the Vault Smart Con­tract. Investors are not entered in the reg­is­ter by name, but with their blockchain address.

 

The bonds do not have a fixed matu­ri­ty date. Matu­ri­ty of the bonds is sub­ject to ter­mi­na­tion by the investors or the issuer. Investors have the right to ter­mi­nate the bonds in whole or in part at any time with­out observ­ing a notice peri­od. The bonds do not bear inter­est on an ongo­ing basis. In the event of ter­mi­na­tion of the bonds, the investor is enti­tled to the deliv­ery of cryp­to assets in accor­dance with the for­mu­la set out in the Token Terms and Con­di­tions. The bonds will not be redeemed in fiat cur­ren­cy. After ter­mi­na­tion of the bonds, the investor receives the cryp­to assets iden­ti­cal in type and class to those which they sent to the issuer when sub­scrib­ing to the bonds.

 

For fur­ther infor­ma­tion please review the doc­u­ment „All­ge­meine Beschrei­bung des Ange­bot­spro­gramms“ (in German)

How to acquire fija USDC GMXv2 BM Token

Step 1: Reg­is­tra­tion and qual­i­fi­ca­tion as an accred­it­ed investor

Investors who wish to invest in fija USDC GMXv2 BM Token must reg­is­ter below. After suc­cess­ful reg­is­tra­tion, please check the inbox of the email address provided.

 

Step 2.1: Know Your Cus­tomer (KYC) and Anti-Mon­ey Laun­der­ing (AML) Compliance

All prospec­tive investors must pro­vide BMCP GmbH & fija Cap­i­tal UG with KYC infor­ma­tion in order for the issuer to per­form the required KYC and AML analy­ses and to oth­er­wise con­firm that the investor meets oth­er suit­abil­i­ty require­ments that the issuer may require from time to time. fija Cap­i­tal UG and BMCP GmbH reserves the right to reject any invest­ment at its sole discretion.

 

Step 2.2: IMPORTANT — Pro­vide your EVM Wal­let address dur­ing the KYC process

While com­plet­ing step 2.1 and pro­vid­ing your KYC infor­ma­tion, you will also be asked to pro­vide your EVM wal­let address to be whitelist­ed for the fija Cap­i­tal UG platform.

 

Step 3: Sub­scrip­tion process

After com­plet­ing step 2.1 and 2.2, you will be noti­fied as soon as your wal­let address is on the whitelist and you will get access to the fija Cap­i­tal Invest­ment Plat­form. You can then con­nect f.e. via Wal­let­Con­nect, and select and con­firm the invest­ment amount on the fija Cap­i­tal Invest­ment Platform.

fija USDC GMXv2 BM Token

Tar­get Fund Raise

EUR 8,000,000

For Retail Investors from

Germany

For Pro­fes­sion­al Investors from

Europe

Issuer fija Cap­i­tal UG
Juris­dic­tion Ger­many
Instru­ment Type Bear­er Bond
Blockchain Arbi­trum
Tokens used USDC, ETH
Pro­to­cols used GMX, AAVE
Total Invest­ment Volume €8,000,000
Min. Invest­ment Amount N/A
Max. Invest­ment Amount N/A
Tar­get­ed Yield 15–20% p.a.
30-day Aver­age Yield 25% p.a.
Esti­mat­ed Life­time Yield 20% p.a.
Start of Offering 1 June 2024
End of Offering N/A
Term any­time-can­ce­lable
Accept­ed Currencies USDC
Sec­ondary Trading No
For gen­er­al ques­tions about Secu­ri­ty Token Offer­ings please read our FAQs or Con­tact us.
Investor Doc­u­men­ta­tion

More infor­ma­tion about the issuer, as well as the legal doc­u­men­ta­tion you will receive after reg­is­tra­tion. We are avail­able for ques­tions at any time – contact@blackmanta.capital

Inter­est­ed investors must reg­is­ter and qual­i­fy as pro­fes­sion­al client accord­ing to Annex II of DIRECTIVE 2014/65/EU. A pro­fes­sion­al client is a client who pos­sess­es the expe­ri­ence, knowl­edge and exper­tise to make its own invest­ment deci­sions and prop­er­ly assess the risks that it incurs.

Poten­tial investors must suc­cess­ful­ly com­plete an investor iden­ti­fi­ca­tion process in accor­dance with anti-mon­ey laun­der­ing rules in order to invest. Only iden­ti­fied and ver­i­fied investors can par­tic­i­pate in the offer­ing and pur­chase tokens. There is no pref­er­en­tial sub­scrip­tion right for investors. There is no enti­tle­ment to allo­ca­tion of the tokens. Acquired tokens will be cred­it­ed to the investors’ per­son­al wal­let and simul­ta­ne­ous­ly record­ed in the issuer’s register.

Legal Infor­ma­tion

The infor­ma­tion in this Offer­ing is intend­ed sole­ly for investors who are not locat­ed or res­i­dent in cer­tain oth­er restrict­ed juris­dic­tions and who are not oth­er­wise per­mit­ted to receive such information.

The infor­ma­tion in this Offer­ing does not con­sti­tute an offer or solic­i­ta­tion to pur­chase any secu­ri­ties in the Unit­ed States, Aus­tralia, Cana­da, Japan, South Africa, the Repub­lic of Chi­na or in any oth­er juris­dic­tion in which such offer or solic­i­ta­tion is not autho­rized or to any per­son to whom it is unlaw­ful to make such offer or solicitation.

Users of this infor­ma­tion are request­ed to inform them­selves about and to observe any such restric­tions. Secu­ri­ties may not be offered or sold in the Unit­ed States absent reg­is­tra­tion or an exemp­tion from reg­is­tra­tion under the Unit­ed States Secu­ri­ties Act of 1933, as amended.

An invest­ment involves con­sid­er­able risks and can lead to the com­plete loss of the assets invest­ed. In the inter­ests of risk diver­si­fi­ca­tion, only those amounts of mon­ey should be invest­ed that are not required or expect­ed to be returned in the near future. How­ev­er, the risk is lim­it­ed to the invest­ment sum made and there is there­fore no oblig­a­tion to make addi­tion­al contributions.

The Issuer is sole­ly respon­si­ble for all con­tents and infor­ma­tion pro­vid­ed regard­ing the offer­ing. BMCP GmbH acts as a pure inter­me­di­ary and assumes no lia­bil­i­ty for the accu­ra­cy of the pro­vid­ed content.

For its dis­tri­b­u­tion ser­vices BMCP receives ongo­ing fees for investors AUM com­ing through BMCP of 12,5% of the rev­enue on deposits. 

DISCLAIMER

 

MARKETING NOTICE PURSUANT TO § BT 3.1.1 MACOMP

THE FOLLOWING IS A MARKETING COMMUNICATION AND NOT AN INVESTMENT RECOMMENDATION. THIS ADVERTISING COMMUNICATION IS THEREFORE NOT A SUBSTITUTE FOR INVESTMENT ADVICE AND DOES NOT TAKE INTO ACCOUNT THE LEGAL PROVISIONS PROMOTING THE INDEPENDENCE OF FINANCIAL ANALYSES, NOR IS IT SUBJECT TO THE PROHIBITION ON TRADING FOLLOWING THE DISSEMINATION OF FINANCIAL ANALYSES.

THIS SITE DOES NOT CONSTITUTE AN OFFER OF SECURITIES OR A SOLICITATION OF AN OFFER TO PURCHASE SECURITIES TO ANY PERSON IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL. THE DISTRIBUTION OF THIS OFFER MAY BE RESTRICTED BY LAW IN CERTAIN JURISDICTIONS. FAILURE TO COMPLY WITH SUCH RESTRICTIONS MAY CONSTITUTE A VIOLATION OF THE SECURITIES LAWS OF SUCH JURISDICTION.

THE OFFER IS ONLY AVAILABLE TO INVESTORS FROM EUROPE WHO HAVE EXPRESSED AN INTEREST IN INVESTING IN THE OFFERING.

THE INVESTMENT INTO THE BONDS BEARS A RISK OF TOTAL LOSS OF THE INVESTED CAPITAL. IN SUCH A CASE THE INVESTOR WILL NOT RECEIVE HIS INVESTED CAPITAL BACK; INTEREST; OR ANY OTHER REMEDIES.