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

New Updates

Since publishing this article, Francium 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. As such, I have published an updated Easy Rebalancing of a Pseudo-Delta Neutral Position on Solana’s Francium Protocol 2nd Edition that takes into account the new changes.

I had decided to update these instructions in the new article instead of updating this one so that readers who had bookmarked the current URL can still refer to it (these 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 in the new article have been updated to reflect the UI changes, do note that they were created using the original set of transaction data below.

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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 expected to increase over time as well. So re-rebalancing…