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

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 the position and debt will be needed once a while to re-establish the position’s delta neutrality.

This article is to expand on how can one easily rebalance a PDN position on Solana’s Tulip Protocol. I also have another similar article on doing the same on Solana’s Francium Protocol.

Disclaimer: This is not investment or financial advice, but a sharing of my adventures and learnings in crypto space, where I conduct various experiments with different tokens and protocols across different blockchains.

Warning: This is a long read, being one of my longest articles ever. I want to be as thorough in my explanations as I can with examples and elaborations because how to rebalance a PDN position is probably the question I get asked the most.

Checking Solana’s TPS

To save yourself from a world of headaches, before you initiate any adjustments to your Leverage Yield Farming (LYF) positions, it is a good practice to check…