Meanwhile in Delta Neutral land we're still printing stable yields – it's a good time for an ELI5 on Aperture's upcoming project🤓 
What exactly is a #deltaneutral strategy?
✅ Deploy a long & short position on the same asset (simultaneously bet for & against said asset)
✅ Now you're hedged against volatility in either direction
✅So the overall delta of the asset in question totals zero
✅ Deploy a long & short position on the same asset (simultaneously bet for & against said asset)
✅ Now you're hedged against volatility in either direction
✅So the overall delta of the asset in question totals zero
🤔 Why do this?
💵 Bc you can generate APY on both sides of the bet (regardless of what direction prices are going)
Let's use synthetic Block stock ($mSQ) as an example (thanks to @jack this company is now Block not Square).
💵 Bc you can generate APY on both sides of the bet (regardless of what direction prices are going)
Let's use synthetic Block stock ($mSQ) as an example (thanks to @jack this company is now Block not Square).
In Terra DeFi world using @anchor_protocol & @mirror_protocol you can get yield by:
💰 Staking sLP token received from mSQ short position
💰 Providing liquidity between long-position on mSQ & a stable-coin ~ $UST
💰 APY generated from collateral needed to create short position
💰 Staking sLP token received from mSQ short position
💰 Providing liquidity between long-position on mSQ & a stable-coin ~ $UST
💰 APY generated from collateral needed to create short position
There's a few more details to the execution that are best explained via chart. Comment if you have more questions!
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