ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
2
UST delta neutral farming calculator for Mirror v2
3
For a true delta neutral strategy, simply borrow with aUST and short with aUST as collateral (see the "Delta Neutral" tab)
4
This is an optimized, almost delta neutral strategy for farming UST. The yield on Mirror is paid in MIR tokens, these need to be claimed and sold.
5
Anchor protocol gives a fixed (almost fixed) yield of 20%, so choose Anchor if this farming strategy yields lower.
6
To mitigate impermament loss, the long farm position might need to be adjusted over time (over time this is however not a big issue for most mAssets).
7
8
Not financial advice. There are many risks to consider, including impermament loss,
9
liquidation risk, slippage, protocol risk, smart contract risk and more.
10
11
website:terra.mirror.finance/farm
12
made by: @danielzak
13
14
STEP 1: Copy the sheet (File -> Make a copy), then edit the grey cells with numbers from you asset of choice
15
Asset namemAMD
16
INITAL CAPITAL ESTIMATE10.000,00UST
(adjust this so that TOTAL CAPITAL ALLOCATION below match your goal)
17
aUST1,00UST
18
Anchor APY18,00%
19
asset price - POOL200,00UST
20
asset price - ORACLE150,00UST
21
Stock quantity to short14,29mAMD
22
long yield25,00%mAMD
23
short yield15,00%mAMDnvid = 32.62
24
short collaterization ratio200,00%mAMDglaxy = 33.82
25
26
STEP 2: Short the asset using aUST
27
SHORT14,29mAMD
28
collateral4.285,71aUST = 4285,714286UST in Anchor
29
yield (short farm + Anchor)1.092,86UST/year
30
31
STEP 3: Buy the asset and long farm
32
a) BUYusing2.857,14UST
33
gives14,29mAMD
34
35
b) LONG FARMasset matching 100%2.857,14UST
36
yield1.428,57UST/year
37
38
total SHORT4.285,71UST
39
total BUY&LONG FARM5.714,29UST
40
TOTAL CAPITAL ALLOCATION10.000,00UST
41
TOTAL YIELD2.521,43UST/year
42
25,21%per year
43
44
45
46
STEP 4: After two weeks the UST from STEP 2 (short sell) are unlocked and can be withdrawn
47
WITHDRAW2857,142857UST
48
49
TOTAL CAPITAL ALLOCATION7.142,86UST
50
TOTAL YIELD2.521,43UST/year
51
35,30%per year
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100