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.

https://neutra.finance/stats

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

📍Strategy preformance

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

🩷 Delta Spread

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

📍Rebalancing

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

mainly because

- 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.