Easy Rebalancing of a Pseudo-Delta Neutral Position on Solana’s Francium Protocol 2nd Edition

New Updates

Since publishing my article on Easy Rebalancing of a Pseudo-Delta Neutral Position on Solana’s Francium Protocol, the protocol had introduced new UI features that made the task of rebalancing a PDN position on the protocol even easier than before: with a new Updated Net Exposure gauge, you no longer need to note the NSA held as Debt during the rebalancing process. This is an updated version of the original article to take into account the new features and styling with updated screenshots.

I had decided to update these instructions in this new article instead of updating the previous one so that readers who had bookmarked the previous URL can still refer to it (the previous instructions are still relevant). Also, it serves as a record on how DeFi protocols such as Francium are improving their UX at a rather rapid pace. While the screenshots have been updated to reflect the UI changes, do note that they were created using the original set of transaction data.

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I mentioned in my article on Revisiting the Fundamentals of Pseudo-Delta Neutral Hedging that a Pseudo-Delta Neutral (PDN) position is only really delta neutral when we first set it up. With price movements, the amount of Non-Stable Asset (NSA) in the Liquidity Pool (LP) position will increase and fall. Also, with auto-compounding of farming yields, the amount of NSA in the the LP position is also…