The dollar is sinking, digital assets are a rollercoaster, and commodities yield nothing. At Multipli we aim to solve this 3 body problem

What is Multipli?

Multipli is a ZK based multi-chain yield protocol that allows you to make reliable yield on stables, natives and even traditionally non-yield bearing assets (eg. BTC, MATIC, ARB, PAXG, etc).

Multipli has onboarded multiple blue-chip institutions (Pantera, Leading RWA protocol with $500M+ FDV, Leading CEX in Asia, etc) with a launch TVL of $100M, and uses battle tested arbitrage strategies which have been perfected by hedge-funds for over a decade.

Why Multipli?

The market cap of stablecoins, including USDT, USDC, and BUSD, currently stands at $161 billion. Although it’s just 6% of the entire crypto industry’s value, this seemingly small segment contributes a whopping $20 billion towards the yield market.

Which begs the question: why are native tokens, which are far more abundant, lagging behind when it comes to yield output?

The unfortunate reality is that you can't reliably earn more than 1% on your BTC holdings. Most L2 tokens offer a meagre yield of less than 1%, and generating yield on newer tokens is nearly impossible.

Additionally with Real World Assets (RWAs) becoming mainstream, it's only a matter of time before traditional assets are traded on-chain. Multipli is set to lead this transformation, not only by offering reliable yields on treasury-backed tokens but also by unlocking yield opportunities for traditionally non-yield-bearing assets like stocks and commodities. This not only provides yield bearing opportunities to the digital asset ecosystem but also acts as a reason for bringing more liquidity on-chain.\

The Challenge at hand

There are n number of yield protocols in the world however every protocol varies widely in their approaches, but a significant portion of them rely on lending and borrowing mechanisms to generate yield. However, this model has inherent limitations, particularly when it comes to generating yield for traditionally non-yield bearing tokens such as Bitcoin (BTC), Arbitrum (ARB), Tokenized Gold (PAXG), etc.

Reward Dilution and Low supply-demand on Lending protocols

• Limited Returns: For traditionally non-yield bearing tokens, the interest rates on lending platforms are often very low. For example, the interest rate on BTC deposits on platforms like Aave and Compound is typically less than 1%.

• Market Saturation: The high liquidity and low risk associated with these major tokens result in saturated markets where yield opportunities are quickly balanced by supply and demand, further driving down returns.

On the other hand, the protocols which do not fall under this lending or borrowing gambit have their own challenges, for example:

Automated Market Makers (AMMs) and Liquidity Provision

Dual-Sided Liquidity Provision:

• AMMs such as Uniswap, SushiSwap, and PancakeSwap require users to provide liquidity in pairs (e.g., ETH/USDT, BTC/DAI). This means that to earn yield, liquidity providers must deposit both sides of the trading pair, which often includes stablecoins or other assets alongside the native token.

• Impermanent Loss: Providing liquidity in AMMs exposes users to impermanent loss, where the value of deposited assets could be lower compared to simply holding them due to price volatility between the paired assets.

• Capital Inefficiency: For native tokens, this requirement creates capital inefficiency as users must hold and manage additional assets, reducing the effective yield on the native token portion of their holdings.

Example:

• Uniswap ETH/USDT Pair: To provide liquidity and earn yield on ETH in Uniswap, users must also deposit an equivalent value of USDT. If ETH appreciates significantly, users may face impermanent loss, reducing overall returns.

• This setup makes it difficult to generate substantial yield solely on native tokens, as the need to manage and balance paired assets dilutes potential returns and introduces additional risk.

The Solution

Multipli has been built ground up to solve this trillion dollar 3 body problem by deploying risk-free arbitrage strategies across markets to generate sustainable yield on native, stable and real world tokenized assets (RWA). Multipli uses yield-bearing delta-neutral and delta long synthetic positions against every staked native and stablecoin deposit. These synthetic positions (xBTC, xUSDT, etc) are created by utilizing derivatives which allow for the staked asset to scale without significant overcollateralization and are used as collateral to long or short assets on reliable & high-liquid CFD & perpetual exchanges through OES (off-chain exchange settlement) rails. By leveraging spot perpetual arbitrage, we capitalize on funding rates and concurrently, our contango arbitrage strategy takes advantage of price differentials between a variety of spot/futures markets in contango conditions, securing risk-free profits.

Historical Returns

Since January 2020, Multipli has backtested its strategies across both stablecoins (e.g., USDT, USDC, FDUSD) and native assets (e.g., BTC, ETH, PAXG, STRK) through various market conditions, including bull and bear markets, which often result in volatile funding rates. Our delta-neutral strategies have demonstrated the ability to secure risk-free profits of up to 20% on stablecoins and approximately 11% on native assets by capitalizing on price differentials between spot and futures markets in contango conditions.

The 6-month moving average of returns has consistently remained positive over the past four years for stablecoins, and 92% of the time for native assets, despite periods of negative funding rates in 2020 and 2021, as well as during the mid-2022 Luna and later-2022 FTX collapses. This resilience is particularly noteworthy. Under optimal conditions, investors can anticipate achieving an annual percentage yield (APY) of 58%.

As the holding period increases, the minimum return from arbitrage decreases, guaranteeing profitability over the long term.

The yield table above reflects only the pure funding fee yield. However, by incorporating the staking yield of the underlying asset—such as MATIC, which offers approximately 5%—the worst case yield becomes positive even for the shortest duration. For example, with MATIC, the net yield would be 1.33% (5% staking yield minus 3.77% worst case funding fee).

The Team & Vision

Multipli is backed by tier 1 VCs like Pantera Capital, Elevation Capital, Sequoia, Spartan Group, Protofund, more and includes some of the best minds from a diverse set of highly-reputable institutions all the way from BlackRock to Coinbase.

At Multipli, our vision is to create the premier yield platform that unlocks secure, reliable, and decentralized returns for any digital or tokenized asset, with the aspiration of becoming the Medallion Fund of Web3.