Strategy
The PMUSDC Vault (Protected Moonshots USDC) aims to provide users with simple way to earn boosted stablecoin yields. The strategy can be split into two components:
- 1.The base yield: The vault uses deploys it capital into a variety of stablecoin liquidity pools in order to generate a base yield
- Liquidity pools are chosen according to Brahma's Stablecoin risk framework
- 2.Weekly derivative trades: Every week the base yield is harvested and used to open a derivative trade that aims to profit off movements in crypto asset prices
- Any profits from these weekly trades provides a boost to the base yield, and are compounded back into the strategy
- Only the weekly yield is used to open derivative positions so the underlying capital is never at risk of liquidation
- Derivative trades are either executed on Lyra (if purchasing options) or on Perpetual Protocol (if trading perpetual futures)
- The direction of the derivative trade is determined by a momentum signal
Last modified 8mo ago