SuiDollar
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  • Delta Neutral USDC Vault
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  1. Delta Neutral USDC Vault

Vault Strategy

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Last updated 6 months ago

The SuiDollar USDC Vault employs a two-part delta neutral strategy designed to maximise the yield captured from the Sui basis trade.

The Vault is built on top of 2 well-established Sui DeFi protocols, namely: NAVI Protocol and Bluefin Exchange. NAVI Protocol is the largest decentralised lending protocol on Sui, with a TVL of $500m at the time of writing. Bluefin Exchange is Sui's largest decentralised perpetual futures exchange, having processed more than $34B in trading volumes.

The Strategy

SUI tokens are supplied to NAVI lending markets and a delta hedge is executed on Bluefin, thereby creating a delta neutral onchain USDC position. This position is maintained through time while earning the following sources of income:

  • NAVI Interest Income

  • Bluefin Funding Income and Basis Spread

At the time of writing, SuiDollar USDC Vault depositors are earning 37.07% APY on their USDC position. This can be broken down into the following components:

  • NAVI Interest Income: 4.45% APY

  • Bluefin Funding Income: 32.62% APY

NAVI Protocol:

Bluefin Exchange:

https://naviprotocol.io
https://bluefin.io