LobsterDAO 🦞

22 Apr 2025 04:27

To execute delta neutral strategy, is it execute atomically?

LobsterDAO 🦞

21 Apr 2025 22:44

yeah but I am looking for something all ready does it for me, would guess it is quite a common usecase

LobsterDAO 🦞

21 Apr 2025 22:14

what's the easiest way of doing a zk proof based wallet checking on chain? essentially check if a wallet is part of a list without revealing the list?

LobsterDAO 🦞

21 Apr 2025 19:56

Depends.

Hyperliquid is always profitable. Also some others. Gains is more volatile. Gains profitability here:

https://fixupx.com/TradingProtocol/status/1910322048640893375/photo/1

LobsterDAO 🦞

21 Apr 2025 19:37

As I understand market maker vaults could be profitable only on the low volatility periods?

LobsterDAO 🦞

21 Apr 2025 18:59

If I read correctly it is a profitable strategy if GMX ETH-USD vault market making income offsets the cost to have a hedge position on Aave

LobsterDAO 🦞

21 Apr 2025 16:07

Not the same, but almost.


Liquidity providing on GMX
To generate a return, the strategy provides liquidity in the deposit currency ETH to the GMX liquidity pool ETH-USDC which facilitates various activities for traders including long/short positions and swap trades. Providing liquidity generates returns from several streams such as trading & swap fees, trader liquidations and borrowing fees that traders pay for using the provided liquidity. The annual return generated by the pool is dynamic and dependent on the trading activity within the GMX ecosystem. The more trading volume generated by traders, the higher the return of the strategy.

Hedging on Aave
By providing liquidity to the ETH-USDC pool on GMX, part of the deposit currency ETH gets automatically swapped to USDC as the pool is composed of both assets. As the strategy is delta-neutral with regards to ETH, it's imperative to keep the full exposure to the price behavior of Ethereum. The strategy achieves this through a hedging mechanism utilizing the decentralized lending platform Aave, where USDC is borrowed and used to buy ETH which is also provided as collateral, effectively creating a long position for ETH. While this procedure is a capital-efficient way to eliminate the USDC price exposure of the strategy, there is one more aspect that needs to be considered to achieve full ETH delta-neutrality. The liquidity pools serve as counterparty for users on GMX trading the respective market pairs (in this case ETH-USDC). This means that liquidity providers stand to gain when traders incur losses and vice versa. As the positions of traders and hence their wins and losses continuously change, the strategy constantly monitors the open interest of the trading pair which is a clear sign if traders are currently long or short on the trading pair. The net effect of the open interest on the liquidity pool is included in the hedging mechanism, effectively reducing or increasing it depending on the net positions of traders.

https://strategies.fija.finance/?vaultId=79ba9232-ae0b-46bf-9622-474e29d7450a

LobsterDAO 🦞

21 Apr 2025 16:00

I have seen some vault strategies doing this, I can look them up

LobsterDAO 🦞

21 Apr 2025 15:52

Chaos Labs is proposing to remove the debt ceiling on USDe in Aave V3 Ethereum and introduce a new E-Mode setup, pointing to rising demand, a solid safety track record, and a revamped rewards system that now favors USDe over sUSDe with 25x points. - governance.aave
🏷️ USDe, Ethereum, aave

LobsterDAO 🦞

21 Apr 2025 14:45

Fyi it's 2 years old though

LobsterDAO 🦞

21 Apr 2025 14:30

solana's whole model seems to 'don't worry about it, some centralized mechanism somewhere will take care of it'

LobsterDAO 🦞

21 Apr 2025 14:24

it's a really bad situation.

LobsterDAO 🦞

21 Apr 2025 14:21

@nyavyga muted, too much random screaming and blaming ethdevs for “extracting money with marketing”. Like what… they are not business-smart enough for that :D

LobsterDAO 🦞

21 Apr 2025 14:16

or maybe a shadow validator loaning for marinade?

LobsterDAO 🦞

21 Apr 2025 14:10

I just read marketing materials of mev extractors
It is should be eliminated obv. It is stupid as fuck that communists at EF(maybe not so much, when it is in their buddy interests) did nothing to do actually end this story

LobsterDAO 🦞

21 Apr 2025 22:49

I don’t think dev ux for zk is at this level yet

LobsterDAO 🦞

21 Apr 2025 22:22

Building the zk circuit

LobsterDAO 🦞

21 Apr 2025 20:04

Does anyone know a decent alternative to Kaito Yapping?

LobsterDAO 🦞

21 Apr 2025 19:54

has there been any credible attempt at creating a decentralized version of Google Ads auction markets?

LobsterDAO 🦞

21 Apr 2025 19:05

Also to add here, based on our research market maker vaults are more profitable, range 20% - 30% annual, compared to the lending vaults. However you need to stomach 5% - 10% drawdowns now and then.

LobsterDAO 🦞

21 Apr 2025 18:57

they got -8% APY, it looks like now costs are higher then profits

LobsterDAO 🦞

21 Apr 2025 16:01

there's project on hyperevm

LobsterDAO 🦞

21 Apr 2025 15:59

You need to have a fully onchain peep DEX like GMX to do this atomically

LobsterDAO 🦞

21 Apr 2025 15:50

Would love to know is there any protocol helps with executing delta neutral strategy?

Want to buy spot and short at the same time but don’t want the lagging or human error causes me to lose money.

I am thinking any protocol that implement atomic transaction able to do so. Is there any protocol doing so?

LobsterDAO 🦞

21 Apr 2025 14:36

I find this article very informative on the MEV in Solana: https://www.umbraresearch.xyz/writings/mev-on-solana

LobsterDAO 🦞

21 Apr 2025 14:25

dont take your ability to set 0.05% slippage and actually get a successful trade on evm chains for granted lol

LobsterDAO 🦞

21 Apr 2025 14:24

I can explain this a bit more - on solana a PRIVATE company is operating the mempool for blockbuilders to use. It enabled insane MEV to happen.

They shut it down but still have a separate priority TX infrastructure that they control.

Now after that, some validators started working together to create private DARK mempools where they amass enough stake to see most of the transactions, and MEV users with 0 remorse. And because their validators are more profitable because of this, their stake is constantly increasing

LobsterDAO 🦞

21 Apr 2025 14:16

those are the alternatives and they are fucking scary

LobsterDAO 🦞

21 Apr 2025 14:15

are you a Jito holder?

LobsterDAO 🦞

21 Apr 2025 14:05

https://x.com/crypto_jargon/status/1914224792355381516?s=46