Cruize is the first decentralized protocol that enables capital-efficient asset hedging by tokenizing hedged asset positions. The protocol creates a structured workflow that combines perpetuals and debt strategies to make the hedging mechanism completely self-sufficient and inexpensive.
Price pegged wrapped tokens called crTOKENs (ex - crETH for ETH) are minted for staked assets that have a dynamic price floor enforcing protection. These hedged tokens never fall below the price floor making it possible to always redeem them at a minimum value equal to the price floor. By optimizing the spread between buying and selling debt to both collateralize hedged positions as well as cover costs, the protocol makes it possible to periodically earn positive interest while protecting assets from downsides.
Minted hedged tokens can also be used across DeFi as price protected assets to enable direct utility of hedged positions. The protocol thus enables the creation of a new asset class wrapped on top of volatile tokens that is price protected and also usable across the broader ecosystem.
- Perpetual asset hedging with minimal complexity
- Structured workflow ensuring costless protection
- Direct utility of hedged positions across DeFi
- Full flexibility of withdrawals for protection takers