profile image

Turbo-ETH

Leveraged ETH compounding

profile image

Turbo-ETH

Leveraged ETH compounding

About

APY: 28.5%

TVL: $M

The combination of leveraged long and short positions that provides liquidity for the both spot and derivatives markets.

Parameters:

  • Concentrated liquidity model;

  • Range from -25% to +35%;

  • Leverage: Long - 4x, Short - 3x.

Conditional rebalances:

  • Time-based: once per week

  • Price-based: after price change >10%

Performance:

Profitable vs ETH in a range of +-10% ETH price change with a weekly yield of up to +3.8%.

Learn more

Performance:

Pure ETH
Turbo

The backtested performance over the last 12 months 01.12.2023-01.12.2024 is 28.5% against ETH and 97.2% against USDC. The strategy performs the best during the fast upside markets. while protecting LPs on the downside movements.

Risks:

Loan-To-Value (LTV)

Loan-To-Value (LTV)

To minimize our risk of liquidation, we apply the dynamic leverage adjustment that maintains net 1x exposure (long 4x short 3x):

  1. Conditional-rebalances:

    • Time-based: once per day

    • Price-based: triggered after ETH price change > 10%

  2. Dynamic collateral/debt shift

    • The strategy atomically shift collateral/debt between the long and short legs during the swaps to optimize our LTV curve to mitigate exposure and maintain vault stability.

  3. Trend-based drift

    • Adjusts position parameters dynamically to anticipate market trends (bull, bear, or crab), using USDC borrowing rates as an indicator of decentralized leverage demand.


These mechanisms minimize liquidation risk while optimizing performance, even in volatile markets.


Risks:

Risks:

Loan-To-Value (LTV)

Loan-To-Value (LTV)

Loan-To-Value (LTV)

To minimize our risk of liquidation, we apply the dynamic leverage adjustment that maintains net 1x exposure (long 4x short 3x):

  1. Conditional-rebalances:

    • Time-based: once per day

    • Price-based: triggered after ETH price change > 10%

  2. Dynamic collateral/debt shift

    • The strategy atomically shift collateral/debt between the long and short legs during the swaps to optimize our LTV curve to mitigate exposure and maintain vault stability.

  3. Trend-based drift

    • Adjusts position parameters dynamically to anticipate market trends (bull, bear, or crab), using USDC borrowing rates as an indicator of decentralized leverage demand.


These mechanisms minimize liquidation risk while optimizing performance, even in volatile markets.