SugarYield Indirect Competitors

3 min readFeb 7, 2023

Difference between Spot trades and SugarVault trades

Spot trades occur at a centralized exchange where the prices of assets are determined on the spot. The spot trading comes with the benefit of mitigated volatility risk. However, there are certain limitations to it.

The prominent difference of spot trading from SugarVaults is that the user might get the ownership of the asset on the spot in spot trading, whereas in SugarVaults user only have a certain share on future ownership of the asset.

Secondly, In spot trading users can earn only in the Bull market, that is to say, when the market is performing Positively!

However, in SugarVaults, users can earn in both the Bull market as well as the Bear market. Users can speculate on the performance of the crypto assets and take positions accordingly. In case the market is Bearish, users can short their trades to earn profits from future selling of their assets.

Perks of SugarVaults: use case

For convenience, let’s consider the example of Julie who has taken a short position in SugarVault. Since the beginning of this year the crypto market has been facing prominent downward trends, Julie speculated a pro-longed crypto winter so she took a short position in the SugarVault, where she paid only a portion of the asset’s price and sold it in the future to take profit. Now as the market goes down, Julie earns! In addition to that, she does not need to worry about liquidating her assets. On a mere transaction fee, the assets are automatically liquidated.

Difference between Margin trades and SugarVault trades

Margin trading on Crypto Exchange enables users to borrow virtual assets to trade on the spot market. Eligible customers can utilise the margin loan as leverage (borrowed virtual assets) to establish a position bigger than their account balance. Traders on the Crypto Exchange must first send virtual assets as collateral into their margin wallet.

The the basic difference between the Margin trades and SugarVault trades is the fact that the Margin trades only happen for instant use, whereas SugarVaults have an epoch cycle of 7 days or more. Also for the Margin users can only invest in a single crypto whereas there are pairs.

Conclusion

Sugaryield vaults offers hedge and speculation for pegged assets like USDT/BUSD/USDC and DAI. Participants in vaults can earn upto 2x reward based on their win or lose situation. Sugaryield vaults are audit by one of renowned audit firm SolidProof. Moreover, they have integrated chainlink price oracle to triger price in case of depegg. Protocol is safe, secure and sustainable. So what are you waiting for try your luck!

Social Media