Neutra Finance: How Does the Innovative GLP Vault Maximize Holder Returns?
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Neutra Finance: How Does the Innovative GLP Vault Maximize Holder Returns?
Over the past few months, the $GLP battle has been intensifying.
Navigating Web3 tides with focused insightsWritten by: Defi Mochi
Translated by: TechFlow
Over the past few months, the $GLP battle has been intensifying! Now, a true innovator has launched a new protocol designed to reduce smart contract risk while offering up to 90% APR on $GLP staking, along with a delta-neutral strategy. It's called Neutra Finance.
Let’s take a quick look at this project.
Despite being the leader in the "real yield" narrative, $GLP has suffered from significant price volatility and a continuous decline due to impermanent loss. Just last week, $GLP dropped from $0.86 to below $0.83. The current bear market has further exacerbated this downward trend.
Neutra Finance aims to solve this issue by maximizing $GLP returns while reducing risks for vault depositors. To achieve this, they open short perpetual positions on GMX (with 5-6x leverage) and compound GLP rewards, achieving up to 90% APR on $GLP while maintaining delta neutrality.
In its product design, Neutra Finance reduces smart contract risk through all transactions executed via the vault on GMX. Additionally, the act of opening short positions increases the fees paid back to GLP holders, thereby boosting the profits earned by Neutra Finance vault participants.
Based on the weightings of $GLP and volatile assets, Neutra Finance will automatically rebalance the vault—by purchasing more shorts or $GLP—to maintain a delta-neutral (DN) state. The team has conducted extensive backtesting based on price behavior, optimizing compounding to maximize $GLP APR.
Below is Neutra Finance’s backtest for a $10,000 deposit. You can observe that even during periods of extreme volatility—such as the $FTX crash—the vault value remains stable and continues to grow, while $GLP falls below $8,000.
I’ve previously followed several $GLP vaults, but none have actually used GMX to hedge and compound $GLP yields with such high capital efficiency.
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