Flynt Finance, a cryptocurrency wealth management platform, has launched a new product that aims to provide a new investment strategy for cryptocurrency investors. The company’s recently launched USDC delta neutral strategy uses GMX’s GLP liquidity pool, a decentralized cryptocurrency derivatives exchange. The GLP pool is a basket of assets that includes a mix of stable and non-stable assets, allowing for a dynamic investment approach that can adapt to market fluctuations.
The USDC delta neutral strategy, where the goal is to minimize exposure to risk while maximizing returns. The strategy is based on neutralizing the portfolio’s exposure to the price changes of the underlying assets, by being long and short on assets with similar characteristics. The idea is to profit from the fees generated on the GMX exchange without needing to take price exposure of the underlying assets in the GLP basket. The strategy’s backtest results have demonstrated that a specific management setting recorded a compounded yield of 23.43% per annum.
The GMX platform has been growing rapidly, with a trading volume of over $70 billion to date and it allows traders to use leverage up to 50x. Traders on GMX trade against the GLP pool, a pool of assets that includes BTC, ETH, UNI, and LINK, as well as an assortment of stablecoins (USDC, USDT, DAI, and FRAX) generating a stable source of yield. The GLP pool is also earning a portion of fees from swaps, lending fees, and liquidation fees, which makes it a favorable place for longer-term investors to park their funds.
“We understand that the USDC delta neutral strategy is not a new concept in the industry, but we believe that our implementation utilizing GMX’s GLP pool sets us apart,” said David, CEO of Flynt Finance. “Our goal is to provide our clients with a unique and valuable investment opportunity, by offering a risk-management strategy with the potential for high returns, up to 20% APY.”
Flynt Finance‘s USDC delta-neutral strategy is a smart move for investors who want to diversify their portfolio while remaining in the cryptocurrency space, and it’s a valuable addition to the investment options currently available in the industry.