Leveraged Delta-Neutral LP

Description

This strategy deploys leveraged delta-neutral liquidity to stable-volatile pairs amongst several supported DeFi protocols. The first set of leveraged vaults uses Tarot Finance (fork of Impermax).

Example

One set of leveraged vaults we support uses Impermax (IMX). IMX strategies enable single-sided leveraged yield farming of Uniswap V2 pools. An IMX strategy with a 5x leverage configuration would execute as follows:

1. Strategy deposits $100

2. $150 is borrowed from the USDC Pool and $250 from the ETH Pool (these are isolated lending pools for the specific ETH/USDC LP pair)

3. $250 USDC + $250 ETH is deposited into the ETH/USDC Uniswap pool

4. The final position is $500 LP (collateral) and $400, i.e., .8 LTV

IMX Strategy

Performance