A concentrated LP position on Uniswap V3 generates elevated fees but carries Impermanent Loss risk. DeltaZero solves this by hedging price exposure via perpetual futures.
When you provide liquidity on Uniswap V3 with a narrow range, you earn high fees. But if the asset price shifts by 20%, so-called Impermanent Loss can wipe out an entire month's earnings.
Result: LP providers either spread liquidity across a wide range (low fees) or risk a narrow range and lose on any price movement.
DeltaZero opens a concentrated LP position and simultaneously hedges price exposure via a perpetual short. The result:
Net Yield = LP_Fees − IL_Hedged − Funding_Cost − Rebalance_Slippage
In the terminal you see all position parameters in real time: current LP position, hedge parameters, P&L breakdown and rebalancing recommendations. Execute trades directly from the interface.
Detailed yield breakdown: how much earned from LP fees, how much lost to impermanent loss, how much the hedge cost. Graphs of cumulative profit, drawdowns and delta exposure.