Delta Neutral ETH

Strategy description: Generates yield from both ETH and USD yield-bearing assets while maintaining market neutrality through balanced exposure. This strategy utilizes borrowed USDC to acquire both ETH and USD yield-bearing assets, requiring periodic rebalancing to maintain its delta-neutral position.

The USDC used in the LP position is borrowed (shorted) and thus the strategist remains neutral in their USDC exposure. By utilizing very wide ranges, the LP composition is minimally affected by limited market changes.

A detailed explanation how the delta neutral strategies work, and their mathematical derivation can be found here.

Yield source: Combines multiple yield sources from both ETH and USD-based assets. The yield generated automatically counts towards the Account health, out-earning the interests of the borrowed USDC.

Strategic use cases: You want to accumulate both ETH and USD holdings independent of ETH's price volatility, while being comfortable with leveraged DeFi strategies and periodic portfolio rebalancing.