🚀 Unlock secure on-chain bots with @eulerfinance's Account Operator feature:
Build a keeper for an actively managed strategy
Securely execute rebalancing trades via a server while access to funds stays with a secure wallet.
Define the risk parameters and rebalancing trades in a smart contract.
Approve it as an operator for the sub account.
The hot key held on the server can only execute transactions that rebalance the strategy.
In-Depth: Opening A Delta Neutral Long @pendle_fi PT Trade with @euler EVC on @SonicLabs $PT-stS / $S
yielddev.io/in-depth-impleme…
Advanced Yield Strategy on @pendle_fi made possible with @eulerfinance EVC Batch and euler-orderflow-router: (sophisticated degenerates only)
51.92% Delta Neutral Leveraged PT-stS Fixed Yield
1⃣. Start with 💵 in USDC.e Vault & receive 8.8%
2⃣. Borrow 7x your capital worth of wS & pay (7x4.84%)
3⃣. Swap all wS for PT-stS & receive fixed (7x11%)
4⃣. Deposit PT-stS as Collateral
5⃣. wS liability is 1:1 with PT-stS underlying wS exposure, thus is delta neutral
6⃣. 51.92% positive carry = 77% - 33.88% = 43.12% + 8.8%
This whole trade can be one shotted in a single tx using evc batch. If you read my blog, you too can learn this power.
⚠️While the USD value of this position won't change based on the price movement of wS, it can still be liquidated for being under collateralized if the price of wS rises.
⚠️The position is also exposed to the implied PT rate. If the implied rate for PT-stS shoots up the value of the PT collateral in terms of wS will fall and put pressure on the position's LTV
ℹ️ Using @eulerfinance we are able to efficiently finance a high leverage PT wS position against USDC collateral. Creating a massively boosted delta neutral yield on our cash.
ℹ️ This strategy trades off price risk for solvency risk as it becomes increasingly important to manage the position in a sophisticated manner with a keeper or stop loss bot to deleverage or recapitalize the position if wS price rises.
🎯 Anyone in Defi grinding on chain needs to be learning how to harness the power of @eulerfinance tools for on chain position & liquidity management.
Nice Yield on @SonicLabs @pendle_fi @beets_fi PT tokens, would be a shame if @eulerfinance efficiently neutralized these wS deltas.
