Concentrated liquidity requires specialized protection. Monitor your Target Token Split to understand how your portfolio health shifts as prices move toward your boundaries.
We calculate the 'Delta' (Token X quantity) of your Uniswap V3 position. The required short is the USD value of those tokens. The simulation supports discrete rebalancing, where the hedge is adjusted whenever the price moves beyond your specified trigger percentage.
Being delta-neutral means your portfolio value doesn't change when the underlying asset price moves. In DeFi, we use shorts to cancel out the 'long' exposure of LP tokens.
Shorting on perps usually involves paying or receiving funding. If funding is positive, you PAY to hedge. This 'bleed' must be lower than your LP APR to remain profitable.
As price moves, your LP delta changes. To stay neutral, you must adjust your short size. High volatility requires more frequent (and expensive) rebalancing.
Hedges aren't free. Whether it's perp funding or spot borrow interest, this 'carry cost' must be weighed against the LP yield you are protecting.
Neutralizes your current delta 1:1. Matches your current Token X quantity exactly. The standard 'Delta-Neutral' starting point for balanced protection.
Hedges 50% of your exposure. Reduces volatility and crash pain by half while maintaining 50% of the upside potential. A flexible coverage for uncertain markets.
Static hedge based on the token split at the range center. No constant rebalancing needed, offering stable protection linked to the range median.
Averages your current and maximum exposures for smoother protection. Best for choppy markets that frequently alternate between range boundaries.
Calculated hedge size so short profits cancel out Impermanent Loss exactly at the range floor. Perfect IL protection if price hits the bottom bound.
Hedges maximum possible tokens (100% X at range bottom). Extremely bearish over-hedged posture protecting againt full range traversal.
Just-In-Time strategy. Plan to open short ONLY if price hits floor. Max yield, high risk. Provides ZERO protection while price is comfortably above floor.
Shorts 150% of current delta. Explicit bet on price drop while earning LP fees. Aggressive bear market strategy.
Choose your own hedging ratio and set rebalance triggers for a personalized strategy simulation.
