GMD Protocol on Arbitrum
  • 🟦GMD Protocol Overview
    • GMD Protocol
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  • 💰Delta-Neutral Vaults
    • Delta-Neutral Vaults
    • Working Mechanism
    • Vaults Capabilities
    • Vaults Limit
    • APY and Deposit Fees
    • Vault Migration
  • 👾GMD Delta-Neutral Strategy
    • Market Volatility Risks
    • Pseudo-Delta-Neutral Strategy
    • Delta-Neutral Ratio
    • Manual Rebalancing of Deposits
    • Protocol's GLP Reserve (The Reserve)
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  • The Strategy:
  • The Strategy Explained:
  1. GMD Delta-Neutral Strategy

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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Last updated 2 years ago

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