The majority of DeFI users take massive losses due to huge exposure to market volatility.
But you could have mitigated such losses simply by hedging your position against these investments
Want to find out who's building the ultimate vault for all DeFI yield?
Let's dive: 🧵
But you could have mitigated such losses simply by hedging your position against these investments
Want to find out who's building the ultimate vault for all DeFI yield?
Let's dive: 🧵
In this thread, I'll walk you through:
• Hedging
• @Vaultkaofficial Overview
• @Vaultkaofficial Products
• Roadmap
• Hedging
• @Vaultkaofficial Overview
• @Vaultkaofficial Products
• Roadmap
1️⃣ Hedging
Hedging is a method to mitigate potential investment loss and limit users' exposure to crypto market volatility.
To hedge an investment simply means to do the opposite.
Hedging is a method to mitigate potential investment loss and limit users' exposure to crypto market volatility.
To hedge an investment simply means to do the opposite.
Hedging involves the use of Derivatives which can be Futures Contract or Options, now evolving into vaults
Vaultka leverages different market-neutral strategies to capture real yield from different protocols.
Vaultka leverages different market-neutral strategies to capture real yield from different protocols.
2️⃣ Vaultka Overview
Vaultka is building the ultimate vault for all DeFI yield which aims with different strategies to capture the best return under market neutral approach.
Vaultka is building the ultimate vault for all DeFI yield which aims with different strategies to capture the best return under market neutral approach.
Vaultka is currently on Arbitrum and with its risk-managed and delta-neutral strategies earns users yield to currently outperform the current market stablecoin yield.
Looking for where to earn a yield on your stables amidst market fluctuations, Vaultka automated strategy vault does that for you with a decent APR.
3️⃣ Vaultka Products
Vaultka with its different strategies already leverages its core product with a few protocols which are:
• Savings Vault
• Vodka - GLP Neutral Vault
• Whiskey - MLP Delta Neutral Vault
• Sake - VLP Leveraged
• Savings Vault
• Vodka - GLP Neutral Vault
• Whiskey - MLP Delta Neutral Vault
• Sake - VLP Leveraged
1/ Savings Vault: This leverages the water vault in which users lock up their USDC to earn yield based on their selected strategy.
The strategy is automated which provides capital to AAVE to share a collateralized position with Vodka vault.
The strategy is automated which provides capital to AAVE to share a collateralized position with Vodka vault.
These strategies can be in form of :
1. GLP Delta Neutral
2. MLP Delta Neutral
1. GLP Delta Neutral
2. MLP Delta Neutral
2/ Vodka - GLP Neutral Vault: GLP Vault is the liquidity provider token of the GMX trading platform which serves as a counterparty to the traders.
The GLP comprises these underlying assets; $BTC, $ETH, $LINK, $UNI, $DAI or $USDC
The GLP comprises these underlying assets; $BTC, $ETH, $LINK, $UNI, $DAI or $USDC
GLP holders are exposed to all these underlying assets when they provide liquidity and they also earn yield incurred by the traders either in profit or loss.
Here’s a historical PnL of GMX:
Here’s a historical PnL of GMX:
Vaultka aims to provide a Delta Neutral Vault using GMX’s GLP vault as the underlying strategy here.
Vaultka Delta Netrual Vault now hedges the price movement of $BTC and $ETH by shorting the GLP using a reputable lending protocol (AAVE).
Vaultka Delta Netrual Vault now hedges the price movement of $BTC and $ETH by shorting the GLP using a reputable lending protocol (AAVE).
Also, users deposit into this vault and earn GLP rewards in $ETH which is auto-compounded and rebalanced without exposure to market fluctuations.
Below is the schematics of this work:
Below is the schematics of this work:
And here’s a step-by-step on how Vaultka aims to achieve that:
• The Smart Router screens and selects assets to purchase GLP with the lowest cost
• Vaultka perform flash loan on $BTC and $ETH on Balancer
• Exchange the $BTC and $ETH to $USDC on Uniswap
• The Smart Router screens and selects assets to purchase GLP with the lowest cost
• Vaultka perform flash loan on $BTC and $ETH on Balancer
• Exchange the $BTC and $ETH to $USDC on Uniswap
• Borrow $BTC and $ETH against the $USDC from AAVE
• Repay Flash Loan $BTC and $ETH to Balancer
• Monitor the health ratio to prevent liquidations
• Repay Flash Loan $BTC and $ETH to Balancer
• Monitor the health ratio to prevent liquidations
The health ratio which is monitored to prevent liquidations is based on three factors:
• Time Period
• Delta Drift
• Health Factor Threshold
• Time Period
• Delta Drift
• Health Factor Threshold
The keepers which serve as the oracle monitors, control and trigger these functions in a decentralized automated manner.
The Whiskey (MLP Delta Neutral Vault) and Sake (VLP Leveraged) are coming soon in the future.
The Whiskey (MLP Delta Neutral Vault) and Sake (VLP Leveraged) are coming soon in the future.
4️⃣ Roadmap
Vaultka's roadmap is categorized into phases
Phase 1 (Q1 2023):
• This leverages real yield and savings vaults.
Vaultka's roadmap is categorized into phases
Phase 1 (Q1 2023):
• This leverages real yield and savings vaults.
Vaultka Delta Neutral Strategy is already live on:
• GMX Delta Neutral Vault
• Mycelium Delta Neutral Vault (In progress)
Also, Vela’s VLP Delta Neutral Vault and MUX’s Delta Neutral Vault are coming soon.
• GMX Delta Neutral Vault
• Mycelium Delta Neutral Vault (In progress)
Also, Vela’s VLP Delta Neutral Vault and MUX’s Delta Neutral Vault are coming soon.
Phase 2 (Q2 2023):
• This will focus more on adopting different DeFI strategies.
Already, have adopted GMX PvP AMM Synthetics strategy, leveraged strategies and saving vault expansion.
• This will focus more on adopting different DeFI strategies.
Already, have adopted GMX PvP AMM Synthetics strategy, leveraged strategies and saving vault expansion.
Phase 3 (Q1 2024):
• This will focus on Asset Management products as the community grows bigger for users to earn outperformed market yield for Stablecoins.
• This will focus on Asset Management products as the community grows bigger for users to earn outperformed market yield for Stablecoins.
That’s the end for today and if you’re looking for where to hedge your investments and earn yields on stables
Vaultka provides market-neutral and risk-managed vaults according to users' specified strategies.
Vaultka provides market-neutral and risk-managed vaults according to users' specified strategies.
That's a wrap and if you enjoyed this thread
1. Give a like, retweet to the first post
2. Follow me for more of these
Tagging some close Chads
@ViktorDefi
@Louround_
@DeFiMinty
@Only1temmy
@psychguy_eth
@Slappjakke
@0xTindorr
@Chinchillah_
1. Give a like, retweet to the first post
2. Follow me for more of these
Tagging some close Chads
@ViktorDefi
@Louround_
@DeFiMinty
@Only1temmy
@psychguy_eth
@Slappjakke
@0xTindorr
@Chinchillah_
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