Pseudo-Delta-Neutral Strategy

The Strategy:

GMD Protocol’s Delta-Neutral vaults use a strategy we call the GMD pseudo-delta-neutral strategy, which will consist of 3 major key parts:

  1. Delta-Neutral Ratio

  2. Manual Rebalancing of Deposits

  3. Protocol's GLP Reserve (The Reserve)

The Strategy Explained:

Our pseudo-delta-neutral strategy is simple:

  • Deposited asset composition ratio is set equal to GLP asset composition ratio

  • The deposited assets will be manually rebalanced so that the composition ratio will be exactly equal to GLP's asset composition ratio

  • Any difference between deposited assets value and underlying GLP value will be made up by Protocol's GLP Reserve

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