Steadefi’s strategy vaults are multi-asset vaults that executes it’s designated leverage and delta strategy, borrowing assets from lending vaults in order to leverage and/or to hedge, and deploying them to yield earning sources in external protocols to generate higher yields.
Each strategy vault will have it’s predefined leverage and delta strategy, as well as protocol(s) that it deploys capital to in order to generate yield.
Strategy vaults fit the higher risk/reward user profile that seeks to earn higher yield than possible with their assets. Depending on the user’s market outlook, they can deposit into appropriate strategy vaults with the delta strategy that aligns with their market outlook, in order to not just earn higher yields, but do so profitably based on their outlook.
As of December 2023, Steadefi v2 is relaunching with strategy vaults that earn leveraged yields from GMX v2 GM pools.
As Steadefi strategy vaults integrate and borrow only with Steadefi’s isolated lending vaults (and not externally), your deposits are able to earn leveraged yields in the most capital efficient manner possible. In fact, with 24/7 rebalancing, if your strategy vault can leverage even higher at a healthy ratio, it will do so automatically.
Delta Long, Neutral and Short Strategies
Steadefi’s vaults offer different delta strategies to allow users to earn yield profitably based on their risk profile and market outlook.
⏫ Delta Long
This strategy fit users that wants to earn the highest yield possible while believing that the market outlook is bullish (trending upwards) over time. This strategy typically borrows more stablecoins for more volatile assets and depositing them all as liquidity to earn yield. This strategy is the most profitable when the price of the volatile asset appreciates.
↔️ Delta Neutral
This strategy fit users that wants to earn the highest yield possible while believing that the market outlook is crabbish (ranging sideways) over time. This strategy typically borrows both stablecoins AND volatile assets for both leverage and hedging and depositing them all as liquidity to earn yield. This strategy is the most profitable when the price of the volatile asset more or less stays the same over time.
⏬ Delta Short
This strategy fit users that wants to earn the highest yield possible while believing that the market outlook is bearish (trending downwards) over time. This strategy typically borrows more volatile assets for leverage and hedging and depositing them all as liquidity to earn yield. This strategy is the most profitable when the price of the volatile asset depreciates.
Ultimately, there is a strategy that caters to a depositor’s market outlook (bull, bear or crab) to allow depositors to not just earn yield, but earn yield profitably.
24/7 Monitoring and Auto-Rebalancing
Keepers are ran 24/7 to monitor the health parameters of all strategy vaults, ensuring that they keep to their predetermined yield earning strategy. This means that you do not have to worry about constant monitoring, complex computations and tedious on-chain transactions to rebalance your own positions to ensure your desired strategy is maintained correctly.
No Full Liquidation
With the tight integration between strategy and lending vaults, along with 24/7 monitoring and auto-rebalancing, depositors do not have to worry about the risk of full liquidations of their principle deposits.
Yields earned, whether from trading fees or extra bonus rewards, are auto-compounded to allow for the most optimal and capital efficient yield generation.
No Lock-Ups or Deposit/Withdraw Fees
Users are free to deposit and withdraw at any time without any penalties or extra costs.
A 2% per annum management fee is charged on the vault’s total deposits, as well as a 20% performance fee on yields earned are charged.