Delta Neutral Strategies - Deprecated

Delta neutral strategies long and short an asset at the same time while farming the asset. This reduces the market volatility as the user is covered against asset price movements but it still generates yield from farming.

Vector TraderJoe USDC-AVAX

This strategy has been deprecated. Withdrawal only.

Protocols & Pools Used: Aave - USDC & AVAX Pools; TraderJoe - USDC-AVAX & JOE-AVAX & AVAX-USDC Pools; Vector Finance - USDC-AVAX Pool;

Description The strategy deposits a portion of USDC into Aave as collateral and borrows AVAX against it. The borrowed AVAX along with the remaining USDC is deposited into the AVAX/USDC liquidity pool on Trader Joe and LP tokens are issued as the representation of the position. The strategy earns a portion of the fees paid for any trading happening in the pool. The LP tokens are further deposited into Vector finance which provides extra incentives to provide liquidity in the form of JOE token which is sold for USDC and reinvested into the strategy itself.

Risks:

• Impermanent loss risk in AVAX/USDC pool if the price of AVAX would move a significant amount over a short period of time

• Liquidation risk if safety measures were to fail (low possibility)

• Standard smart contract risks

• USDC depeg risk