DeltaPrime partners with LB optimizer: SteakHut
At the end of 2022, DeltaPrime partnered with ten amazing protocols. Every single one of them provides value to the Avalanche ecosystem in their own unique way. We, on our turn, interact with every single one of them in a combination of ways. All to make your portfolio management as easy, and efficient as possible.
Efficiency
With Efficiency being the keyword, DeltaPrime turns these partnerships into vehicles to drive our vision of a capital-efficient DeFi ecosystem forward. This translates into higher utilization, and with that returns, for Depositors and Prime Account holders alike. To consistenly bring value to the Prime Account, we partner up with the best of Avalanche. They, who turn DeFi from a “liquidity hoarding” ecosystem, to one that utilizes liquidity to spur growth and innovation. They, who deepen pool liquidity across the chain.
And our newest fren, is SteakHut.
Why the match?
SteakHut builds upon Trader Joe’s Liquidity Book. As we have discussed in this article, DeltaPrime is a big fan of every innovation which boosts capital efficiency. This is exactly what Liquidity Book does.
As a quick refresher: Liquidity Book allows liquidity providers to concentrate their liquidity around user-specified price points. The result: With the same amount of provided liquidity, slippage is significantly reduced. Same liquidity, less idle capital, reduced slippage, efficient AMM.
Sounds gud.
The counterside of freedom
At the same time, every innovation that increases freedom for its users (in this case, the freedom to pick and adjust your own price points), increases complexity for users as well. While Liquidity Book can significantly enhance your returns, it requires its users to understand market-making to optimize their portfolio. A skill not everyone is, or has to be, sufficient in.
Enter: SteakHut
SteakHut allows users to utilize automated Liquidity Book strategies. These strategies concentrate, and rebalance liquidity around the current active bin, meaning that provided liquidity is always being utilized. Depending on the strategy, the liquidity is either more or less concentrated around the active bin. But in both cases, capital utilization is significantly increased.
DeltaPrime
Having a high utilization ratio is DeltaPrime’s main KPI. It is what separates DeltaPrime from the overcollateralized protocol and it is what leads to DeltaPrime consistently having higher returns than those same overcollateralized protocols. Moreover, this high utilization ratio results in that what we are all building for.
To unlock the full potential of Avalanche.
Combining protocols
And thus we team up. With security always being our top priority, this meant going through SteakHut’s audit and code, doing an audit on our own SteakHut integration, KYCing the team, upgrading the timelock from 6h to 24h, and sharing and discussing documents on real yields made so far for SteakHut LPs.
Reviewing it all, we feel confident that this integration will not only be secure, but also very rewarding for users who decide on adding SteakHut to their portfolio of strategies.
So who benefits?
Prime Account holders & Depositors
This partnership will allow DeltaPrime users to benefit from Trader Joe’s Liquidity Book, without having the need to actively manage their LB positions. The increased capital efficiency allows for higher yields on your (borrowed) funds. Simultaneously, a new stable opportunity will give shorters positive APY from having an open short-position. Depositors in their turn can expect a higher APY as a result of more borrowing demand. For the real portfolio manager, this integration will opens up new avenues for delta-neutral and delta-mitigating strategies on DeltaPrime (which in the future can be automated).
SteakHut LPs
SteakHut users will benefit from a multiplied SH yield. As well as the ability to mitigate potential Impermanent Loss (IL) on SH through the rebalancing and management of debt within SH positions. DeltaPrime’s upcoming Real-Yield metric will give users more insights into the profits they are making, including the actual effects of IL and net performance. This metric will be part of an already existing and expanding range of feedback mechanisms within the DeltaPrime protocol. These are aimed at improving your understanding and decision-making process between different investing opportunities within the Avalanche ecosystem.
Other Avalanche visitooors
Finally, external (potential) users on the Avalanche chain will benefit from unlocked liquidity being redirected — from protocols like Aave — into Liquidity Book. This deepened, concentrated, pool liquidity will further lower slippage on the chain, making Avalanche more attractive as a whole. This optimization can be done, without the need to attract a single additional cent in liquidity, outside of Avalanche.
That is efficiency.
What will change?
Starting from the 24th of May, DeltaPrime will add two new SteakHut pools to the Prime Account:
- AVAX-USDC (Balanced)
- USDT.e-USDT (Concentrated)
Given positive feedback on the pools, we will also include another pool in the weeks following this integration.
- AVAX-BTC.b (Balanced)
With the introduction of one volatile pool, one semi-volatile pool and one stable pool, we intend to cater to a range of needs. Additionally, the AVAX-BTC.b pool, will be the first BTC.b use-case on the farm-side of DeltaPrime. This means that traders who go long BTC.b, can now keep their assets working for them (with the option to partially hedge their AVAX exposure).
For those worried about IL, we have you covered too. Next month we will introduce the Real Yield metric to the Prime Account. This newest metric will track the dollar value of an LP position compared to the prior dollar value at an adjustable point in time. Everything, from price-changes, to IL, to fees earned, are being taken into account. So that you can make the best decision.
About SteakHut
SteakHut is creating “The Liquidity Layer of Web3”, a first-of-its-kind liquidity management platform making concentrated liquidity easy.
With SteakHut Liquidity, liquidity providers can stake their tokens to enjoy automated and optimized liquidity on Trader Joe V2. SteakHut’s smart contracts rebalance and reinvest liquidity, ensuring that your capital is always active and earning swap rewards.
™️SteakHut| 🐦Twitter | 👾Discord |ℹ️ Docs
About DeltaPrime
DeltaPrime is your prime broker on a mission to unlock the full potential of DeFi. We accomplish this by providing trustless, undercollateralized loans, redistributing assets with a focus on maximum fund utility. Being built on the strong foundation of the Avalanche network, Prime Account holders are ensured of fast and reliable transactions for their most important investments.
™️DeltaPrime| 🐦Twitter | 👾Discord |ℹ️ Docs
