This is the second of a series of Psuedo-Delta Neutral (PDN) hedging experiments that I am conducting on the Solana Blockchain. This is so that I can obtain actual performance results that can hopefully help me to make better decisions as to decide on what strategies work for me and which protocol I prefer.
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.
Originally, I planned for this PDN experiment on both Francium and Tulip with the following objectives:
- To see how the returns differ based on 2x, 2.5x and 3x Leveraged Yield Farming (LYF)
- To choose a volatile token with high farming yield to see how it weathers the expected price fluctuations
The BASIS-USDC farm on Orca fitted the profile of such a token and so the farm was the basis (pun intended) of these experiments.
These were the 3 positions that were set up on Francium:
