Neutral Trade

Excited to share that Neutral Trade has been selected for the Solana Accelerate Incubator Cohort #4, Building the strategy layer for DeFi on the best chain in the world!🧡

@GilgameshODs @Vault__Summit @Rockaway_X very nice

Will be speaking at @Vault__Summit in Cannes on April 1. Curation is becoming one of the most critical layers in on-chain finance. Not just picking assets, but designing the risk infrastructure that makes yield trustworthy at scale. Looking forward to exchanging views with the builders pushing this forward. See you there!

@Kormos_fi so junior tranche absorb duration risks + liquidity risks + asset risks. Hope the yields are worth it!

Slippage. Unstructured risk. Redemption periods. Three problems Kormos solves to unlock the highest quality yields in DeFi.

But wouldn't there be a bidding process of whoever the first liquidator liquidates the collateral, gets to earn that 4.22%? It means as a liquidator you wouldn't wait for day 89, you would want to do it earlier than your competitor. In a perfect world it means people would compete to be the fastest liquidator

Why Morpho Isn't a Great Fit for RWAs. Morpho is designed around the deployment of immutable markets. A market is defined by its loan token, collateral token, price oracle, and risk parameters; the interest rate model, LTV, and liquidation discount (inferred from the LTV). This is great from a lender's perspective. When you deploy capital to a market, you know exactly what you're lending against and that the terms won't change. But the fundamental problem with this design is that it assumes risk is static, when risk is very much dynamic. What do I mean by this? As a lender, when you deploy capital to a market you have a holistic view of the current world state. You might deploy to a market offering a 91.5% LTV (which infers a 2.62% liquidation discount) where the collateral has plenty of on-chain liquidity available for liquidators. But what happens when that on-chain liquidity starts to disappear? The risk profile of the market has changed, but the parameters haven't. Morpho's solution is to deploy a new market with updated risk parameters that better capture the shift in the external environment. In practice, it's not that simple. If liquidity in the original market is currently being borrowed, borrowers are unlikely to voluntarily migrate their positions to a new market with a lower LTV and a higher liquidation discount. This becomes even more precarious with RWAs, which carry a fundamentally different risk profile from spot tokens. Liquidators go from taking on price risk to taking on duration risk. Let's look at a concrete example. Take the Anemoy Tokenized Apollo Diversified Credit Fund (ACRDX) and assume we deploy a market with an 86.5% LTV, that equates to roughly a 4.22% liquidation discount. ACRDX has quarterly liquidity, so to keep things simple, assume redemptions only occur on the 1st of every quarter. If a position is liquidated on day 1 of a new cycle, the 4.22% discount is probably sufficient to cover the duration risk and opportunity cost of waiting 90 days for the liquidator's redemption to settle. But if the position is liquidated on day 89, the same 4.22% is far more punitive as the liquidator only has to bear one day of duration risk for the same reward. This creates a perverse incentive. Liquidators are encouraged to wait as long as possible before seizing a position, since the longer they delay, the better their risk-adjusted return on the liquidation becomes. By design, this heightens the probability of bad debt accumulating in the market. Risk modelling in a lending market needs to be dynamic. It needs to respond to the specific characteristics of the collateral it's modelling, not treat every asset class as if it carries the same static risk profile. What's good for spot tokens isn't necessarily good for RWA's.

Another addition to our analytics 📊 Now, you can benchmark performance directly! Compare returns with SyrupUSDC, Morpho, Ethena sUSDe, Jupiter, Kamino Main and Drift. Compare strategies, evaluate performance in context, and make more informed decisions, all in one place.

@Chain_AlphaX @orogoldapp @ZeusNetworkHQ Buying 50% gold and 50% btc, rebalances when ratio is off!

@TradeNeutral @orogoldapp @ZeusNetworkHQ Interesting combo… does it actually work well though?

📈 BTC is pumping and the Great Debasement vault is capturing it! A 50/50 split between gold ( @orogoldapp ) & BTC ( @ZeusNetworkHQ ). The real debasement hedge.

Deposit now and protect yourself against debasement: neutral.trade/strategies/gre…

We built Neutral Trade to bring this to DeFi so your USDC can earn yield while you sleep! Check them out at: neutral.trade/strategies

With delta neutral strategies, you're capturing: • Funding rate spreads • Arbitrage opportunities Complex strategies, all automated. In just one click, you're USDC is generating yield. Away from the computer? You're still earning!

Spending all day in front of the computer farming yield? Neutral Trade's automated delta neutral strategies let you take a break. Here's what they are... 🧵

Explore the data! neutral.trade/analytics

New on the Analytics tab 📊 You can now track 7D, 30D, and 90D trailing APY across every Neutral Trade vault in one place. And momentum is climbing back for JLP Delta Neutral – Enhanced! • 30D Net APY: 9.55%

@aeyshubh @hyperithm loll They're very productive ;)

@TradeNeutral @hyperithm I had forgotten i have my stables parked here 🤣

Hyperithm Cross-Exchange Arb has been quietly doing its thing. 🤫 📊 14.36% net-APY on USDC (since launch) 📈 3.68% ROI ⚡ Sharpe ratio: 8.09 🛡️ Max drawdown: 0.14% Market neutral. Running on Solana.

@hyperithm Vault is full, but worth watching for when capacity opens up. neutral.trade/strategies/hyp…

@DavidOnChain wow you are right lol

@TradeNeutral Maybe.... Anchor Protocol !

does this UI remind you of an OG protocol? 10 NT points for the first guy who guessed it right

@muse_jp_sol stay neutral

Stay neutral @TradeNeutral

@fractalsdotfun @solomon_labs @0xspout @CoralOS_ai Looking ahead, expect: → New strategies going live → Expanded vault offerings/capabilities → More integrations across the greater crypto ecosystem We're just getting started.

Being surrounded by the best builders, founders, and minds in the space is exactly where we want to be. Over the next months, we'll be working closely with Solana, ecosystem partners, and fellow builders to push Neutral Trade to new heights!

Excited to share that Neutral Trade has been selected for the Solana Accelerate Incubator Cohort #4, Building the strategy layer for DeFi on the best chain in the world!🧡