Neptune Cards: The Easy Way to Get Started In Web3
Neptune Cards offer holders capital-efficient rewards through stable, diversified returns
Introduction to Neptune Cards
One of the hottest current trends in Web3 is restaking or Liquid staking derivatives (LSDs). Liquid staking protocols have been on the rise, with Lido returning to its 2022 highs and Eigen Layer increasing its TVL from $18 million to over $245 million in less than 6 months — two amazing milestones achieved despite a deep crypto winter.
Despite their benefits and popularity, LSDs can be inconvenient to users. They often feel risky, for good reason, and as a type of derivative, can be difficult to understand. PoseiSwap’s new Neptune Cards, however, change all of that.
As a leading RWA DEX, we at PoseiSwap are dedicated to making it as easy as possible to move into Web3 and access LSDs and other derivative products. The first way we’re doing that is through Neptune Cards, which give you a way to profit from LSDs without directly managing them.
TL;DR
With Neptune Cards, you get:
- Stable and set rewards stress-free
- A stress-free experience: no need to worry about day trading
- Earnings created by our proprietary, advanced, and automated arbitrage system
- The ability to earn both $ETH and $POSE at the same time for maximum capital efficiency
Whether you are an experienced investor looking for stable returns or someone who is crypto-curious but not sure how to get started, Neptune Cards are perfect for you. They let you get exposure to one of the hottest products and narratives of this next bull run without needing to manage it directly yourself.
You can learn more by trying your first Neptune Card here.
Or keep reading to get the details! ⬇️
*as always in Web3, this is not financial advice; always DYOR*
What Are LSDs
Liquid Staking Derivatives (LSDs) are financial instruments that let your money pull double duty. In the past, if you staked ETH for rewards, those tokens were stuck in a staking contract. But with LSDs, offered by protocols like Eigen Layer or Lido, users receive derivative tokens when they stake that are equal in value to their staked tokens. Best of all, these derivative tokens are liquid, meaning that you can stake them in a different contract, earning two rewards from the same underlying asset.
Think of it as letting a protocol rent out your ETH to use to secure its own platform. It’s a great way to optimize your returns, but it does come with risks. First, LSDs require you to watch your tokens closely. For example, if the validator you stake with has their ETH slashed, this will reduce the derivative tokens you have. If your derivative tokens get lost, this can cause a real issue with the tokens you originally staked. It’s critical if you use LSDs that you watch your positions closely.
While this is ideal for many traders who like to get their hands dirty, it isn’t normally how people like to invest. Most investors prefer to “set and forget” their funds. They don’t want to have to watch them daily. At PoseiSwap, we realized there was a need for a product that combined the same kind of ease of use and peace of mind of traditional financial products with the efficiency and upside offered in Web3.
The answer was Neptune Cards.
How Neptune Cards works
Neptune Cards are similar to government bonds in that they guarantee a specific return over a certain period of time. They are purchased using USDT, with 50% of the sale used to earn LSD rewards in $ETH. PoseiSwap uses those funds in its proprietary trading and arbitrage system to maximize your LSD returns on that 50%.
The other half is split with 30% going to PoseiSwap operations and 20% burning $POSE tokens, amounts that can be changed by the future PoseiSwap DAO. However, you will be earning $POSE off of 100% of the sale value of your Neptune Card.
For example, if you purchase a basic tier Neptune Card for $99 USDT, half will go to ETH rewards through liquid staking, andd the other half of the USDT to support POSE tokenomics. But you will be earning 125% yield on $99 worth of POSE. That means, at the end of the set period, you will have $125 worth of POSE as well as the ETH rewards.
Critically, the yield is true yield, based on the real value of POSE, not on inflating your token holdings. That is, if you purchase a Neptune Card that pays 125% yield for $100 USDT, you will have $125 USDT worth of POSE at the end, based on oracle pricing, not just 125% more tokens.
There are multiple tiers of Neptune Cards, with the higher tiers paying higher reward rates than lower ones. Investors can purchase as many cards as they want to hit their financial goals. The more cards purchased, the sooner the yield is paid out.
Benefits of Neptune Cards
Built-In Diversification
One of the key reasons we have structured Neptune Cards to pay rewards in two tokens is to teach good habits. We believe that diversification is a basic risk-hedging strategy that people should be introduced to early — and that should be built into more financial products!
Earn ETH Rewards
But another key benefit of Neptune Cards is that they perpetually earn ETH rewards. ETH has incredible upside potential with Ark Invest projecting that ETH could hit $100,000 by 2029. Holders won’t just be earning more ETH; the ETH they earn is projected to be worth more. We pegged Neptune Cards to ETH because it is widely considered one of the safest crypto assets. This pegging prevents Neptune Cards from going to zero and gives users safety with huge potential earning values.
Lucrative POSE Rewards
The POSE yield offered by Neptune Cards, between 125% to 250% in real terms, is highly attractive to many users. But the point isn’t just the number of POSE tokens you earn. Just like with Neptune Cards, we’ve made sure that POSE itself is an asset worth holding through deflationary mechanisms.
We’ve implemented a number of mechanisms that will reduce the number of POSE overtime, avoiding inflation. Not only is 20% of all the USDT used to purchase a Neptune Card used to burn POSE, but we will burn POSE when ETH hits specific price milestones. For instance, when ETH hits $4,000, 4% of the POSE token supply will be burned.
We will have other mechanisms that put deflationary pressure on POSE. The result is that users will not only be earning high rewards in POSE even as the supply of POSE is designed to decrease over time.
POSE and PoseiSwap’s Future
PoseiSwap’s Neptune Cards, then, are a safe and easy way to enter the advanced areas of the Web3 markets, like LSD. Whether you are new, crypto-curious, or a seasoned investor, Neptune Cards are innovative instruments that automatically diversify your rewards and leverage liquid staking.
The offer a number of key benefits:
- They pay rewards in two tokens, building in diversification
- They can increase your ETH holdings in perpetuity and ETH is expected to increase in value
- They make investing in Web3 as simple as buying a bond.
Buy making Web3 products easy and convenient, Neptune Cards will make moving into crypto assets easy for those used to traditional finance. In fact, helping users transition from centralized finance to decentralized finance is a big part of why PoseiSwap is focused on RWAs: we want to offer investors products on decentralized rails that they are already familiar with to make the transition to Web3 as simple as possible.
No doubt, there will be a lot of innovation and change in the next cycle. But we are proud to be leading the charge to bring decentralized finance to all.
It’s all part of our mission of bringing decentralized finance to all.
About PoseiSwap
PoseiSwap is dedicated to bringing decentralized finance to the real world. By building on Nautilus Chain, PoseiSwap offers users a high throughput DEX with low fees and lower slippage. Beyond that, PoseiSwap will also use Nautilus zk-tech in the future to give users privacy and make Posei suitable for tokenized real-world items and assets.
Learn more about PoseiSwap and join the conversation online!
