learn how to read DeFi strategy preformance
Break down of nGLP performance so far
It's have been around 1 month since @Neutrafinance 's nGLP v2 launch
📈 Let's see how did they perform
👨🏫📊 learn how to read DeFi strategy preformance & backtests
TLDR on @Neutrafinance
Strategy protocol with Delta Neutral nGLP & USDC/ETH Delta Neutral
They recently have nGLP v2 n seem to be doing well!
📍In this thread
i will teach u how to read strategy performance data using their new user friendly Stats page.
First step u need to understand the strategy n data
What is Delta Neutral GLP?
Simple explainis 1 GLP has approx 25% eth, 25% btc 50% stables
delta = eth & btc in the glp
delta neutral = shorting eth & btc amount of glp u have
key is delta moves, u will have to rebalance it
Key data u need to look at
Price of nGLP and comparing with GLP 18/4-21/5
(not including staking reward)
With the hedging of delta, nGLP was able to aviod the recent drop
🟣 Trader PnL
Stakers of GLP win if trader lose.
if the number is positive meaning trader is getting rekt n staker gettin paid
Total $ value of nGLP vault market exposure per 1 nGLP token.
This is effected by price movement of eth, btc n weighting of GLP of each asset
If it moves, it will trigger and rebalance ( more on this later )
🟡 Total Delta
it is the Net Trader PnL and Delta Spread values.
this will be big if market is moving one direction strongly and traders are winning at the same time
Depending on @neutrafinance algo, they will rebalance if the delta spread is too high or based on other events.
these are typically risk management, at the same time "cost" which is relatively low considerating their TVL right now
Overall performance of the nGLP v2 is pretty well so far
- able to hedge the delta of GLP in down market
- Able to keep capital efficiency high capuring more GLP apr by using 8x leverage to hedge, allowing more capital working in GLP
- keeping cost n number of rebalance low while keep the delta drift in a reasonable range.
nGLP v2 only been out for a month, but be early to say but so far it has been great.
Good to note that vaults such as delta neutral essentially is shorting volatility and Deribit Implied Volatility Index has been all time low lately and if this continues will good for the performance of the vault.
Hope u enjoyed it n understood how to find data that matters how it effect strategies.
Each case and strategy might be different, feel free to dm n ask me these things! i love to learn n explore these things!