Delta-Neutral Dex Farming
Reward for participation in new crypto protocols has become a staple. Blackswan is constantly in the process of finding the most capital efficient farms and automating them.
We offer access to custom trading bots that operate on a delta-neutral basis. These bots essentially go short and long on the same asset simultaneously in 2 different wallets. There has been a growing trend of decentralized exchanges/perpetuals exchanges opening in the crypto space. These protocols are usually offering airdrop rewards for users who transact a significant amount of volume.
The bot's exact strategy varies from dex to dex based on fees and other factors but the base concept is a very simple hedge.
The bot has been tested on:
Zeta Markets
Drift
Hyperliquid
Woofi/Orderly
It uses market orders and is able to trade with a net loss of about 1 basis point usually. This means every million dollars in volume incurs a 100$ loss in trading. The primary cost of these farms comes in trading fees which can range from usually 2-10 basis points. Accumulating trading volume earns points on these types of exchanges and eventually points are converted to an airdrop of tokens.
At this point in time, Drift is the only dex tested that has released its token. ROI on trading fees spent was about 300%. We believe there is potential for much higher returns in other protocols especially if farming is done early.
**These bots and their source code are available to all premium members in our discord.
**We actively build bots for new protocols as they present themselves
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