🤝Detail Allocation
Composition
Allow users to stake USDC.e in a vault that is 100% backed by the GLP token.
50% in stable coins
50% in blue-chip tokens such as BTC and ETH.
The expected annual percentage yield (APY) is approx. 5-12% depending on the vaults' demand and supply. See the contract address.
Earn rewards from providing liquidity to GMX while hedging exposure of the GLP token, minimizing impermanent loss with 🚀 high-frequency trading.
This vault has an excellent track record performing at a Sharpe ratio of 10+, and a max drawdown of less than 0.5%, the expected APY is approx. 15-30%. See the contract address and NAV reports.
Relationship
The interaction between the Risk On and Risk Off Vaults creates a synergistic relationship that benefits both types of users.
The dual-vault structure caters to users with different risk tolerances and investment objectives. By lending USDC.e to the Risk On Vault, the Risk Off Vault provides additional liquidity that enables the Risk On Vault to pursue its strategies more effectively.
The Risk On Vault, with its leveraged delta-neutral strategy, seeks to maximize returns by actively hedging and managing exposure to various assets. Meanwhile, the Risk Off Vault offers a more conservative approach, earning a fixed portion of the rewards generated by the Risk On Vault without incurring the same level of RISK.
In return, the Risk Off Vault receives stable returns, making it an attractive option for risk-averse investors.
Risk(R0) = 1/2 * Risk(R1) + 1/2 * Risk(R2)
Risk(R1) = 0
Risk(R2) = 2 * Risk(R0)
APR(R0) = APR(R1) + APR(R2)
APR(R1) = Interest Rate (5%-12%)
APR(R2) = 2 * APR(R0) - APR(R1)
R0: Delta Neutral Vault
R1: Risk On Vault
R2: Risk Off Vault
In summary, the cooperative relationship between the Risk On and Risk Off Vaults enhances the overall performance of the system, offering a range of investment opportunities to accommodate users with varying preferences and risk appetites.
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