SKIP TO CONTENT
delta neutralAdvanced

Delta Hedging Strategy

Maintain market-neutral positions using perpetual futures for hedging.

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

  1. 1Open yield position
  2. 2Calculate delta exposure
  3. 3Short perps to hedge
  4. 4Monitor delta changes
  5. 5Rebalance as needed
  6. 6Close both sides

Pros

  • ✓Market-neutral yield
  • ✓Isolates yield source
  • ✓Reduces volatility
  • ✓Flexible application

Cons

  • ✗Active rebalancing
  • ✗Funding costs
  • ✗Execution slippage
  • ✗Imperfect hedges

Find protocols offering delta-neutral strategy with live rates.

Track live yields, compare protocols, and build your DeFi portfolio with Fensory.

GET EARLY ACCESSArrow right
← BACK TO STRATEGIES