This vault aims to earn a high yield with a low volatility on the underlying assets. The yields are targeted to be higher than a typical stablecoin yield, with a small exposure to market movements. The current strategy earns yield in an OP vault and hedges with ETH because the two assets are correlated in price movements.
The strategy rebalances to maintain the borrow health factor and hedge.
USDC is used to borrow ETH.
The borrowed ETH is converted to OP.
The OP is used to earn yield by providing liquidity in the Velodrome OP-USDC vault.
Rewards are collected and compounded.
The strategy rebalances to maintain the borrow health factor and hedge.
USDC is used to borrow ETH.
The borrowed ETH is converted to OP.
The OP is used to earn yield by providing liquidity in the Velodrome OP-USDC vault.
Rewards are collected and compounded.
The strategy rebalances to maintain the borrow health factor and hedge.