Logical Graphs LLC: Mirror Delta-Neutral Farming Picker Thingie

Question: Why, if the stock market has taken a beating, well: the assets I invest in, anyway, why has my portfolio value gone up?

Answer: I'm preserving capital assets with delta-neutral positions on @mirror_protocol, that's why.

Image courtesy of @flipsidecrypto

On that note, and, as there is a LOT of collateral freed up from the stock-securities dipping, I am going to use my:

MIRROR FARM-PICKER THINGIE/MFPT (tm)

to compute which delta neutral positions should grow.

How do you work the MFPT-thingie (which is a thingie-thingie, but okay)?

enter today's date in cell A5
enter each short APR from https://mirrorprotocol.app/#/farm into col C
enter the @SpecProtocol APY into col D
SORT by Average, col E, Z->A

TADA!

SO! My MFPT tells me the top three yielding delta-neutral positions are:

$mNIO
$mARKK
and $mFB

I own (and short) $mNIO, so I'll expand that position.

And I will open new positions on $mARKK and $mFB.

XCĪT!

The Work

The first thing we do in delta-neutral farming is to look at ALL the collateral ratios:

all ratios above 205% we take down to 200%
all ratios below 180% we add to restore it to 200%

EVERY. SINGLE. DAY! 😤 #NoLiquidations #None

Adjusting Positions

"What is that process of adjusting collateral look like?"

Glad you asked:

SELECT an asset (in this case: $mNKE)

ADJUST its collateral to 200%

CAPTURE returned $aUST

RECORD on the MFPT

Lather.

Rinse.

Repeat for all owned mirrored assets.

Now that you've captured this collateral, the MFPT will tell you how much to invest in each asset

BY. DOING. MATH! ... such wow. 🙄🤪

Adjust existing short positions (e.g.: $mNIO) by first adding the freed collateral then adding to the short until collateral ratio 200%.

Now,

RECORD your new short-position
RECORD the quoted-price of the mirrored asset

And then:

RECORD the mirrored asset portion of your LP

The MFPT computes how much $UST (NOT $aUST) you need to zap* into to your LP.

You can 'zap'* $UST on @ApolloDAO or @SpecProtocol. I have my mirrored long position on @SpecProtocol, so we'll use that protocol in this exercise.

Part I:

Open the mAsset vault.
SELECT UST tab
ZAP in $UST
CHOOSE the 'Mixed'-yielding option.

*zap, v.: asymmetrically add $UST to an LP position

Why do I choose 'Mixed'-compounding? A philosophical treatise.

* δNeutral is about yields so I want to maximize the $MIR yields from these vaults, BUT:

* I've been stung, closing short positions, because LPs eat assets, so I also choose 10% compounding

Choose 90% staking

Okay. That? Above?

That was the easy part: that was maintaining a δNeutral position.

Now comes the fun-part:

Creating a δNeutral position.

Buckle up.

Opening Positions

Fortunately, you now have some familiarity with δNeutral, given that you've maintained one, so creating one should be easy-peasy! Let's go

We will now create a $mARKK δNeutral position here in 5 steps, which are steps that create

a. the short-side and

b. the long-side

Creating The Short Side

STEP 1, the most important step: SELECT $aUST AS COLLATERAL! (sheesh: why do they default to $UST? Who wants to fund with $UST when you can fund with $aUST? REALLY!)

(not that I'm super-intense about this ... or anything) 🤪

STEP 2: ENTER the $aUST collateral amount from the MFPT (do you remember what that is?) (Keep up, buttercup)

STEP 3: RECORD the short position created into the MFPT!!

Nah, fam, I'm not super-intense about everything.

Narrator: lies

My wife: hard agree.

me: HEY! 😤

STEP 4 (okay, so I can't count. And I'm a maths major. Go figure): Select, leik, ya know, 'Farm,' and stuff. 🤪

But, also note the 'returned UST'-amount for later. That sweet, sweet active 'returned UST'-amount ... but: later. Not now. Later.

Narrator: wen?

me: l8r.

We just created a short-position, the most risky position in investing that you can own, so most people will never do that. You're now one of the select-few

We need to support our short position with a long position to convert it into a safe δNeutral position

Let's rock

Creating the Long-Side

Entering the quote-price of the asset and the amount SHORTed into the MFPT, it tells us how much $UST to zap into our LONG LP position on @ApolloDAO or @SpecProtocol (I use spec for this exercise; you do you)