> For the complete documentation index, see [llms.txt](https://sector-finance.gitbook.io/sector-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sector-finance.gitbook.io/sector-finance/products/strategies/leveraged-delta-neutral-lp.md).

# 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

<figure><img src="https://1287585702-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Faizh7QHFZ0AM4JGHZRn6%2Fuploads%2FoJIE2n7LPCAmzrCGnllJ%2FIMX.png?alt=media&amp;token=5f9404c1-ec70-490a-89ee-6d21c1c8c525" alt=""><figcaption><p>IMX Strategy</p></figcaption></figure>

## Performance