Maintain market-neutral positions using perpetual futures for hedging.
Delta neutralAdvanced
Typical APY range8% - 25%
What Is Delta Hedging?
Delta hedging neutralizes directional exposure while capturing other yield sources. Use perps to offset spot or LP positions. Maintain neutral delta. Isolate yield from price risk.
Provide liquidity then short perps to hedge. Earn LP fees without directional risk. Rebalance hedge as delta changes. Popular for LST and stablecoin LP positions.
Requires active rebalancing. Funding costs can eat returns. Execution slippage on rebalances. Imperfect hedges leave residual delta.
Hedge positions with Fensory.
How to Get Started
1Open yield position
2Calculate delta exposure
3Short perps to hedge
4Monitor delta changes
5Rebalance as needed
6Close both sides
Pros
✓Market-neutral yield
✓Isolates yield source
✓Reduces volatility
✓Flexible application
Cons
✗Active rebalancing
✗Funding costs
✗Execution slippage
✗Imperfect hedges
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