Delta Prime is a unique opportunity in the world of DeFi lending protocols. Undercollateralized loans enable enhanced capital efficiency for users. They offer up to 5x leverage against AVAX, sAVAX, BTC.b, USDC, and GLP. Users can borrow either USDC or AVAX to leverage their funds for further yield farming on integrated platforms like Yield Yak and Vector Finance.

Within the basic framework of Delta Prime, there is the risk to be liquidated depending on the strategy being utilized. Some strategies have a higher liquidation risk than others. Regardless, all strategies used can have their health monitored easily on Delta Prime.

Let’s take a look at some sample strategies. For each strategy, we will assume the collateral being utilized is $1,000 USD. The three strategies will go over the underlying platforms used, risks associated, and relative APY projections

Using sAVAX as collateral, we will borrow USDC against our position up to 20-30% health. Users can deposit the sAVAX in either the auto-compounding Yield Yak farm or the Vector Finance PTP/QI emissions farm. Personally, I recommend auto-compounding with Yield Yak whenever possible.

Using BTC.b as collateral, we will borrow USDC against our position up to 30-40% health. Users can deposit the BTC.b in either the auto-compounding Yield Yak farm or the Vector Finance PTP emissions farm.

Depending on a user’s risk tolerance, the health percentage can be raised or lowered. The lower the health, the higher the risk tolerance. I always recommend playing it safe with loans. Better to hold for lower rewards on your bitcoin than be liquidated and have no bitcoin for the next bull run.

Understanding why unlocking BTC.b with undercollateralized loans is a significant deal, head over to my previous substack on $BTC.b. It will help shed light on why this version of Bitcoin is so significant to DeFI.

Using GLP as collateral, we will borrow USDC against our position up to 10-20% health. Users can deposit the GLP in the auto-compounding Yield Yak farm. This is currently the highest netting APY strategy on Delta Prime to date. This strategy averages consistently above 55% APY in sustainable real yield. It recently peaked at 700%+ for 5x leverage users on Delta Prime.

What makes borrowing USDC against GLP so interesting is that GLP is a very stable asset. This means the risk of liquidation is low. Not quite as low as sAVAX against AVAX borrowing, but lower than borrowing USDC against AVAX.

GLP leveraged borrowing on Delta Prime offers users the chance to tap into amplified Avalanche Rush rewards from the platform. Yield Yak and GMX rewards combined with leveraged exposure make for an interesting strategy.

Lower Risk would recommend using AVAX as the borrowed currency. Given that you are just borrowing a non-interest-bearing version of AVAX against an interest-bearing version, it gives users more stability in relative price action. This strategy acts as an easy way to amplify farming rewards in the integrated Yield Yak auto-compounding farm.

This is a very similar, but less risky version of the original $AVAX strategy. This is actually the current strategy I have deployed on Delta Prime. While the UI may not always track rewards spot on, occasionally unwinds of my position have shown profits are accruing in the underlying position.

While not an active borrowing strategy like the four above, however, this passive lending strategy is currently paying a sustainable 13% APR on USDC. This yield is derived from the interest paid on borrowed USDC from the undercollateralized lending side.

This strategy has a lower risk strategy than leveraged borrowing in tandem with yield farming because Delta Prime’s liquidity provision opportunity is without liquidation risk or impermanent loss risk. That makes this an intriguing opportunity for my portfolio with some idle stablecoins.

I hope you enjoyed my strategy summary of Delta Prime. Thanks for reading. Make sure to always practice safe lending practice and double-check my research. I merely write from my experiences and perspective. Take care.

Thanks for reading Minerminer's Minutes! Subscribe for free to receive new posts and support my work.

Delta Prime is a unique opportunity in the world of DeFi lending protocols. Undercollateralized loans enable enhanced capital efficiency for users. They offer up to 5x leverage against AVAX, sAVAX, BTC.b, USDC, and GLP. Users can borrow either USDC or AVAX to leverage their funds for further yield farming on integrated platforms like Yield Yak and Vector Finance.

Within the basic framework of Delta Prime, there is the risk to be liquidated depending on the strategy being utilized. Some strategies have a higher liquidation risk than others. Regardless, all strategies used can have their health monitored easily on Delta Prime.

Let’s take a look at some sample strategies. For each strategy, we will assume the collateral being utilized is $1,000 USD. The three strategies will go over the underlying platforms used, risks associated, and relative APY projections

Using sAVAX as collateral, we will borrow USDC against our position up to 20-30% health. Users can deposit the sAVAX in either the auto-compounding Yield Yak farm or the Vector Finance PTP/QI emissions farm. Personally, I recommend auto-compounding with Yield Yak whenever possible.

Using BTC.b as collateral, we will borrow USDC against our position up to 30-40% health. Users can deposit the BTC.b in either the auto-compounding Yield Yak farm or the Vector Finance PTP emissions farm.

Depending on a user’s risk tolerance, the health percentage can be raised or lowered. The lower the health, the higher the risk tolerance. I always recommend playing it safe with loans. Better to hold for lower rewards on your bitcoin than be liquidated and have no bitcoin for the next bull run.

Understanding why unlocking BTC.b with undercollateralized loans is a significant deal, head over to my previous substack on $BTC.b. It will help shed light on why this version of Bitcoin is so significant to DeFI.

Using GLP as collateral, we will borrow USDC against our position up to 10-20% health. Users can deposit the GLP in the auto-compounding Yield Yak farm. This is currently the highest netting APY strategy on Delta Prime to date. This strategy averages consistently above 55% APY in sustainable real yield. It recently peaked at 700%+ for 5x leverage users on Delta Prime.

What makes borrowing USDC against GLP so interesting is that GLP is a very stable asset. This means the risk of liquidation is low. Not quite as low as sAVAX against AVAX borrowing, but lower than borrowing USDC against AVAX.

GLP leveraged borrowing on Delta Prime offers users the chance to tap into amplified Avalanche Rush rewards from the platform. Yield Yak and GMX rewards combined with leveraged exposure make for an interesting strategy.

Lower Risk would recommend using AVAX as the borrowed currency. Given that you are just borrowing a non-interest-bearing version of AVAX against an interest-bearing version, it gives users more stability in relative price action. This strategy acts as an easy way to amplify farming rewards in the integrated Yield Yak auto-compounding farm.

This is a very similar, but less risky version of the original $AVAX strategy. This is actually the current strategy I have deployed on Delta Prime. While the UI may not always track rewards spot on, occasionally unwinds of my position have shown profits are accruing in the underlying position.

While not an active borrowing strategy like the four above, however, this passive lending strategy is currently paying a sustainable 13% APR on USDC. This yield is derived from the interest paid on borrowed USDC from the undercollateralized lending side.

This strategy has a lower risk strategy than leveraged borrowing in tandem with yield farming because Delta Prime’s liquidity provision opportunity is without liquidation risk or impermanent loss risk. That makes this an intriguing opportunity for my portfolio with some idle stablecoins.

I hope you enjoyed my strategy summary of Delta Prime. Thanks for reading. Make sure to always practice safe lending practice and double-check my research. I merely write from my experiences and perspective. Take care.

Thanks for reading Minerminer's Minutes! Subscribe for free to receive new posts and support my work.