by Steffen Schuldenzucker, Ariah Klages-Mundt, FTL Labs, 2025-09-01 We study the profitability of a hypothetical delta-neutral Dynamic E-CLP that combines an LP position in ETH/USDC with a hedge of the ETH exposure. The result is a simple measure of LP profitability: real yield achievable on USD after hedging costs. TLDR:The hedged LP yielded 134% APY over the backtest (2024-12-01 to 2025-08-01)The hedged LP generated positive profit in ~73% of hours in the analysis (~87% of 30-day rolling pe...

by Steffen Schuldenzucker, Ariah Klages-Mundt, FTL Labs, 2025-09-01 We study the profitability of a hypothetical delta-neutral Dynamic E-CLP that combines an LP position in ETH/USDC with a hedge of the ETH exposure. The result is a simple measure of LP profitability: real yield achievable on USD after hedging costs. TLDR:The hedged LP yielded 134% APY over the backtest (2024-12-01 to 2025-08-01)The hedged LP generated positive profit in ~73% of hours in the analysis (~87% of 30-day rolling pe...