In this video I go over a how to structure your yield farming in order to create a pseudo delta neutral position.
Timestamps 00:00 Introduction 01:00 Delta Neutral Explained 02:51 Why you would want to try this 03:37 Pseudo Delta Neutral Hedging Explained 07:12 Equity curve for Pseudo Delta Neutral Hedging 10:17 How to Pseudo Delta Neutral Hedging 12:26 Borrow Farming Explained 14:03 Equity curve for Borrow Farming 15:38 How to Borrow Farming 16:33 Which one should you do? 18:09 Tips
How to do the Pseudo Delta Neutral Hedging Strategy 1) Leverage yield farm XXX-USDC pair with 3x leverage (borrowing USDC and using 25% of your capital 2) Leverage yield farm XXX-USDC pair with 3x leverage (borrowing XXX and using 75% of your capital)
How to do the Borrow Farming Strategy 1) Leverage yield farm XXX-USDC pair with 2x leverage (borrowing XXX and using 100% of your capital
Some thing to consider. You can use this strategy on any coin that is on the lending tab, meaning you can potentially get some insane APYs.
You must be aware of the risks when doing this: -You can still get liquidated if the price of the farming asset goes up 60% or down 50% shortly after opening your farming position. -Its probably not a good idea to be using this strategy on new IDOs or meme tokens.
This video is purely educational and not financial advice what so ever. Do your own research and ape responsibly.
