Started researching delta-neutral strategies expecting to learn more about hedging.
Ended up going down a rabbit hole on funding rates, options premiums, liquidation flows, lending spreads, and market makers.
@Proof_Of_Mind@sparkgoman Maybe I'm missing something here, but this sounds like you're trying to solve one of the biggest problems with hedged LP strategies:
capital sitting idle.
How are you preventing the same capital from becoming overcommitted across multiple pools during periods of high volatility
Most people still think crypto rewards only one thing:
being directionally right.
Buy low.
Sell high.
Pray price goes up.
But some of the smartest capital on-chain is quietly moving toward something else entirely:
delta-neutral strategies.
A thread ๐งต
One thing I've found interesting while researching delta-neutral strategies:
The goal isn't really to be right.
At least not in the way most people think.
Most of us enter markets trying to predict the next move.
A lot of these strategies start from a completely different