logarithm_fi uses an algorithmic approach to solve this problem that have long plagued yield seekers.
Lets go over
1️⃣ About Logarithm
2️⃣ Plague for Yield Seekers
3️⃣ Nautilus as Core Engine
4️⃣ Roadmap
5️⃣ Confirmed Airdrop + Alpha (you are still early
1️⃣ About Logarithm
Logarithm finance earns you “risk-free” yields while preserving your capital in the simplest way.
Deposit in stablecoin and earn yields denominated in stablecoins.
The vault strategy will do all the work.
🔹How?
This is achieved through active management of delta neutral strategies, which are created around:
▪LP positions on AMM like Uniswap V3
▪shorting it on perp DEXes like GMX.
2️⃣ Plague for Yield Seekers
🔹Problem
Even though capital efficiency has improved with Uniswap V3, the position becomes cumbersome to manage.
It requires constant rebalancing of the LP position to avoid impermanent loss.
Also, current hedging methods for V3 positions like options and money markets are expensive or less capital efficient.
Underlying position is still exposed.
Logarithm will use leverage to hedge users’ exposure squeezing maximum APY from the liquidity.
🔹Solution
▪Maximum APYs through tight V3 LP ranges
▪Capital protected through hedging with on-chain perps
▪Frequent rebalancing to eliminate price exposure
▪Algorithmically determine optimal rebalancing and auto-compounding frequency
3️⃣ Nautilus as Core Engine
Nautilus Vaults is logarithm_fi flagship product.
Users deposit USDC and receive real yield denominated in stables.
This logic will be further expanded to include other products such as:
▪leveraged strategies
▪perp-hedged MM strategies
Now you’ve got a brief understand about Nautilus capabilities.
Let’s go into the backtesting results
🔹 Methodology
Underlying asset: ETH/USDT UNI V3 pool 0.05% fee tier on arbitrum
Duration: 1 Jan to 1 Jun
Max Leverage: 4x
🔹Insights
TLDR: Nautilus vault outperforms Uniswap V3 LPs.
▪APY grows despite any market movements
▪Strategy algorithmically adjust CL ranges
▪Healthy Pool:Hedge ratio
▪40% accumulated fees
🔹Results
11.8% real yield APY on ETH/USDT delta-neutral vault
Expecting this APY to grow with cross strategy execution and leverage strategies
4️⃣ Roadmap
▪TGE in Q3 2023
▪Vaults with cap
▪DN strategies use case expands
▪Expand onto other chains
5️⃣ Confirmed Airdrop + Alpha
Airdrops will be rewarded depositors into the beta vaults. But there will be a cap, so FCFS!
There’s no better way to earn juicy yields.
▪Capital protected
▪Earn real yields in stablecoins + airdrop
▪Enjoy the upside of airdropped $LOG token
Future iterations of the product will include:
▪Nautilus Giga (sit back and relax to earn highest yields)
▪Leverage
▪Higher yielding assets
▪Strategy routing optimisation for more yields
So I would can expect to see more than 12% APY.
Cross-chain expansion and strong partnerships with blue chips protocols like GMX_IO , would be getting me excited.
With GMX v2 launching on mainnet, it lowers the funding rate, leading to… JUICIER YIELDS!