Strategies
Three ways to deploy the same vault. Each one is a fixed recipe of vault and lending positions, opened in one transaction, with its costs and its risks computed before you confirm.
Yield
Recipe: one vault position.
The simplest way in. You hold vault shares, collect the fees, and carry roughly half the stock’s price exposure. No borrowing, no liquidation price. Suits anyone who would be comfortable holding the stock and wants it to earn.
| Shown before you commit | Meaning |
|---|---|
| Projected APY | Trailing 30-day fees, annualised, net of the performance fee |
| Stock exposure | Position delta as a multiple of your deposit, about 0.5x |
| Range used | Where price sits inside the vault’s current range |
Looped
Recipe: vault → borrow USDG against the shares → deposit again, repeated to a target leverage.
More capital in the pool means more fees. It also means more exposure, a borrowing cost, and a price at which the loan is liquidated. The strategy is profitable when the vault’s fee yield exceeds the borrow rate; it loses when it does not, and it loses faster than an unlevered position when the stock falls.
| Shown before you commit | Meaning |
|---|---|
| Projected APY | Gross vault yield on the levered position |
| Borrow cost | Current borrow rate on the loan |
| Net APY | Gross minus borrow cost |
| Liquidation distance | How far the stock can fall before health reaches 1.00 |
| Stock exposure | Delta as a multiple of your deposit, typically above 1x |
Leverage is capped per market. The cap depends on the market’s liquidity and the vault’s collateral factor. Off-hours gaps are the main danger to a looped position; see Risk framework.
Delta-neutral
Recipe: vault position plus a short on the same stock, sized to offset the vault’s stock exposure.
The short cancels most of the price exposure, so what remains is mostly the fee yield minus the cost of the hedge. It is not risk-free: funding rates move, the hedge drifts as the vault’s asset mix changes and needs re-balancing, and the short itself has a liquidation price on the way up.
| Shown before you commit | Meaning |
|---|---|
| Projected APY | Vault fee yield |
| Funding cost | Current cost of holding the short, annualised |
| Net APY | Yield minus funding |
| Liquidation distance | How far the stock can rise before the short is liquidated |
| Stock exposure | Residual delta, near zero at open, drifting between rebalances |
How projections are made
Projected APY uses the vault’s trailing 30-day fees. Borrow and funding costs use the current rates. All three are estimates of the past, not promises about the future, and the page says so next to every number.
Closing a strategy
Closing unwinds the recipe in reverse in one transaction: repay the loan or close the short, then withdraw the vault position. You can also close partially to reduce leverage without exiting.