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. 1.
    Delta-Neutral Ratio
  2. 2.
    Manual Rebalancing of Deposits
  3. 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