# Delta Neutral USD

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

The wETH used in the LP position is borrowed (shorted) and thus the strategist remains neutral in their ETH 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](https://arcadiafinance.notion.site/Delta-Neutral-strategies-1f7f4240c3264bec82608a85b58329a1?pvs=74).

**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 wETH.

**Strategic use cases:** You want to accumulate USD holdings independent of crypto market volatility, while being comfortable with leveraged DeFi strategies and periodic portfolio rebalancing.


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