Hedged liquidity pool farming
In specific market conditions, Main St may selectively deploy capital into delta-hedged liquidity pools, particularly when:
Pool incentives create yield opportunities exceeding our core options strategy
Market conditions reduce options volatility premiums
Diversification benefits enhance overall portfolio stability
This approach involves providing liquidity to on-chain pools while hedging underlying assets off-chain to neutralize directional exposure. While we believe options arbitrage offers superior risk-adjusted returns currently, maintaining flexibility across multiple delta-neutral approaches enhances our ability to adapt to changing market conditions.
Strategy Implementation
Our approach follows this process:
Pool Selection using multi-factor analysis evaluating volume, security, and incentive sustainability
Optimized Capital Utilization through strategic redeployment of cash-and-carry collateral to on-chain yield farming, creating multiple yield streams from the same capital base. Allocation percentages adjust based on market conditions, liquidation risk, and asset-specific requirements.
Multi-Layer Yield from trading fees, liquidity incentives, and strategic positioning
Dynamic Optimization through continuous calibration of hedge ratios and impermanent loss mitigation
The technical implementation requires orchestrating complex interactions between on-chain liquidity provision and off-chain hedging operations—a process that would be prohibitively difficult for individual investors but is automated through Main St's infrastructure.
All yield figures based on historical or modeled performance are subject to change based on market conditions. Past performance does not guarantee future results.
Last updated