Market been going sideways
want to farm something without ETH n BTC exposure?
It's have been around 1 month since @Neutrafinance 's nGLP v2 launch
π Let's see how did they preform
+
π¨βπ«π learn how to read DeFi strategy preformance & backtests
want to farm something without ETH n BTC exposure?
It's have been around 1 month since @Neutrafinance 's nGLP v2 launch
π Let's see how did they preform
+
π¨βπ«π learn how to read DeFi strategy preformance & backtests
TLDR on @Neutrafinance
Strategy protocol with Delta Neutral nGLP & USDC/ETH Delta Neutral
They recently have nGLP v2 n seem to be doing well!
πIn this thread
i will teach u how to read strategy performance data using their new user friendly Stats page.
neutra.finance
Strategy protocol with Delta Neutral nGLP & USDC/ETH Delta Neutral
They recently have nGLP v2 n seem to be doing well!
πIn this thread
i will teach u how to read strategy performance data using their new user friendly Stats page.
neutra.finance
First step u need to understand the strategy n data
What is Delta Neutral GLP?
Simple explainis 1 GLP has approx 25% eth, 25% btc 50% stables
delta = eth & btc in the glp
delta neutral = shorting eth & btc amount of glp u have
key is delta moves, u will have to rebalance it
What is Delta Neutral GLP?
Simple explainis 1 GLP has approx 25% eth, 25% btc 50% stables
delta = eth & btc in the glp
delta neutral = shorting eth & btc amount of glp u have
key is delta moves, u will have to rebalance it
Key datas u need to look at
πStrategy preformance
Price of nGLP and comparing with GLP
18/4-21/5
18/4
nGLP 0.94
GLP 1.011
21/5
nGLP 0.95
GLP 0.968
Difference
nGLP +1%
GLP -4.2%
(not including staking reward)
With the hedging of delta, nGLP was able to aviod the recent drop
πStrategy preformance
Price of nGLP and comparing with GLP
18/4-21/5
18/4
nGLP 0.94
GLP 1.011
21/5
nGLP 0.95
GLP 0.968
Difference
nGLP +1%
GLP -4.2%
(not including staking reward)
With the hedging of delta, nGLP was able to aviod the recent drop
π£ Trader PnL
Stakers of GLP win if trader lose.
if the number is positive meaning trader is getting rekt n staker gettin paid
Stakers of GLP win if trader lose.
if the number is positive meaning trader is getting rekt n staker gettin paid
π©· Delta Spread
Total $ value of nGLP vault market exposure per 1 nGLP token.
This is effected by price movement of eth, btc n weighting of GLP of each asset
If it moves, it will trigger and rebalance ( more on this later )
Total $ value of nGLP vault market exposure per 1 nGLP token.
This is effected by price movement of eth, btc n weighting of GLP of each asset
If it moves, it will trigger and rebalance ( more on this later )
π‘ Total Delta
it is the Net Trader PnL and Delta Spread values.
this will be big if market is moving one direction strongly and traders are winning at the same time
it is the Net Trader PnL and Delta Spread values.
this will be big if market is moving one direction strongly and traders are winning at the same time
πRebalancing
Depending on @neutrafinance algo, they will rebalance if the delta spread is too high or based on other events.
these are typically risk management, at the same time "cost" which is relatively low considerating their TVL right now
Depending on @neutrafinance algo, they will rebalance if the delta spread is too high or based on other events.
these are typically risk management, at the same time "cost" which is relatively low considerating their TVL right now
Overall performance of the nGLP v2 is pretty well so far
mainly because
- able to hedge the delta of GLP in down market
- Able to keep capital efficiency high capuring more GLP apr by using 8x leverage to hedge, allowing more capital working in GLP
mainly because
- able to hedge the delta of GLP in down market
- Able to keep capital efficiency high capuring more GLP apr by using 8x leverage to hedge, allowing more capital working in GLP
- keeping cost n number of rebalance low while keep the delta drift in a reasonable range.
nGLP v2 only been out for a month, but be early to say but so far it has been great.
nGLP v2 only been out for a month, but be early to say but so far it has been great.
Good to note that vaults such as delta neutral essentially is shorting volatility and Deribit Implied Volatility Index has been all time low lately and if this continues will good for the performance of the vault.
Thats it!
Hope u enjoyed it n understood how to find data that matters how it effect strategies.
Each case and strategy might be different, feel free to dm n ask me these things! i love to learn n explore these things!
Thanks @Neutrafinance for sponsoring this tutorial as well!
Hope u enjoyed it n understood how to find data that matters how it effect strategies.
Each case and strategy might be different, feel free to dm n ask me these things! i love to learn n explore these things!
Thanks @Neutrafinance for sponsoring this tutorial as well!
CHECK OUT MY LINK HIT ME BABY
How to read delta neutral GLP strategy data!
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