Dual Investment is a fixed-term strategy where you commit capital to earn yield, but you must accept either a payout in the asset you deposited or a different one at a pre-set price. It’s not passive yield farming; it’s a structured product where you sell an option.
Here’s the mechanism: you deposit, say, 1 ETH. You choose a target price (the “strike”) and an APR (e.g., 30%) for a 7-day term. At expiry, one of two things happens automatically. If the market price is above your strike, your ETH is sold at that higher strike price, and you receive the proceeds in USDT. You keep the yield. If the market price is below your strike, you simply get your 1 ETH back plus the yield, paid in ETH. Your yield is locked in the moment you subscribe, but your principal is exposed to conversion risk.
Concrete example: BTC is at $60,000. You commit $10,000 worth of BTC (0.1667 BTC) to a 14-day Dual Investment product with a strike price of $62,000 and an APR of 25%.
- Scenario A (BTC rises): At expiry, BTC is at $65,000. Since this is above your $62,000 strike, your BTC is sold at $62,000. You receive $10,333.33 (0.1667 BTC * $62,000) in USDT, plus your yield. The yield is ($10,000 * 0.25 * (14/365)) = ~$95.89. Total return: ~$10,429.22 in USDT. You profited from the yield but missed out on the price increase above $62,000.
- Scenario B (BTC falls): At expiry, BTC is at $58,000. Since this is below your strike, you get your principal back in BTC, plus yield in BTC. You receive 0.1667 BTC + (0.1667 * 0.25 * (14/365)) = ~0.1673 BTC. Your BTC is now worth only ~$9,703.40 (0.1673 * $58,000). You earned yield but took a loss on the depreciated asset.
You lose money in two clear scenarios. First, if the asset price falls significantly below your strike and you take delivery of the depreciated asset (as in Scenario B). The yield may not cover the capital loss. Second, you lose in opportunity cost if the price surges far above your strike; you crystallize gains at your lower strike price and forfeit further upside.
I’ve run these on Binance, Bybit, and OKX. Binance offers the widest range of assets and terms, but their interface is cluttered. Bybit has the most intuitive product builder and clear P&L simulations before you commit, which I prefer for testing parameters. OKX often has competitive APRs for major pairs. For beginners, Bybit’s simulator is the best educational tool.
This isn’t a set-and-forget strategy. It requires a firm view on a price range. I use it to generate yield on assets I’m willing to sell at a specific profit target or accumulate more of if they dip.
Full guide with interactive calculator: https://www.exchange001.xyz/strategies/dual-investment
Originally published at ExchangeScout
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