Delta-Neutral Strategy Builder

WHAT IT DOES

This tool provides comprehensive simulation and analysis for delta-neutral yield strategies across multiple DeFi protocols. It reads your wallet balances and current market data—including funding rates, borrow APYs, and yield rates—then simulates a delta-neutral position based on your target asset, position size, hedge ratio, and leverage. The tool calculates net APY, estimated annual return, breakeven price change, and risk level, helping you evaluate strategy viability before committing capital. It supports protocols including Aave, Compound, Maker, dYdX, and Perpetual Protocol across multiple EVM chains.

HOW TO USE

Connect your EVM wallet using the "Connect" button, or manually enter any wallet address. Select your target asset (ETH, WBTC, USDC, DAI, or LINK). Enter your position size in USD, hedge ratio (0.0 to 1.0, with 1.0 being fully hedged), leverage (1x to 5x), and choose your protocol and network. Click "Build delta-neutral strategy" to run the simulation. The tool will display your strategy parameters, current borrow APY, funding rate, yield rate, net APY, estimated annual return, breakeven price change, and risk level. Positive net APY indicates a potentially profitable strategy under current market conditions.

TECHNICAL MECHANISM

The tool uses a multi-factor simulation engine that models delta-neutral strategies across lending, borrowing, and perpetual DEX protocols. It fetches current borrow APYs from lending protocols (Aave, Compound, Maker), funding rates from perpetual DEXs (dYdX, Perpetual Protocol), and yield rates (lending yields + protocol incentives) from on-chain data. The simulation computes net APY as: (yieldRate × hedgeRatio × leverage) - (borrowAPY × (leverage - 1) × hedgeRatio) - (effectiveFunding × hedgeRatio × 0.5). Effective funding is annualized from per-period funding rates. Breakeven price change is calculated as (borrowAPY - yieldRate) / 100. Risk level is categorized as Low (netAPY > 5%), Medium (netAPY > 0%), or High (netAPY ≤ 0%). All calculations use live market data to provide current strategy projections.

WHAT IT CANNOT SEE

The tool cannot view positions on non-EVM chains (e.g., Solana, Bitcoin) or protocols that are not integrated with the tool's data sources. It cannot show real-time pending transactions or mempool activity—only confirmed on-chain data is available. It cannot access wallet data without explicit user connection or manual address entry. It cannot detect off-chain holdings or centralized exchange balances. It cannot execute delta-neutral strategy transactions—this is an analysis and simulation tool only. It cannot guarantee strategy profitability due to funding rate fluctuations, oracle delays, or impermanent loss. The simulation does not account for slippage, gas costs, rebalancing frequency, or liquidation risk. The tool's data sources may have rate limits or require API keys for production use. It does not provide financial advice or guarantee the accuracy of aggregated data.

PLEASE NOTE

This tool is for informational and simulation purposes only and is not financial advice. Delta-neutral strategies involve complex risks including funding rate volatility, oracle price deviations, and liquidation risk. Net APY projections are estimates based on current market conditions and may change rapidly. Always verify rates and positions directly on-chain before making any decisions. The tool's data sources are subject to rate limits and availability. This tool only works with EVM-compatible chains and the supported protocols. Use at your own risk.