Delta Neutral Strategy

Target Allocation: 50-70% of USD* collateral

A delta-neutral position is designed to be unaffected by market price swings. Whether the price of assets like ETH or BTC go up or down, the overall value of the position (measured in dollars ) stays stable.

How it works:

• Underlying Asset: The delta-neutral portfolio includes a certain quantity of the underlying crypto asset (e.g., BTC or ETH). This spot position serves as the core collateral.

• Hedging via Derivatives: To achieve delta-neutrality, a corresponding short position is opened using derivative contracts (typically perpetual futures) on centralized or decentralized exchanges. This short offsets the price exposure of the spot asset, neutralizing directional risk.

• Capturing Funding Rates: The short derivative position earns funding payments which serve as source of yield. By maintaining balance between long spot and short perp, the portfolio captures these rates while remaining protected from price volatility.

This strategy enables Perena to:

• Earn real, market-based yield via funding rates and arbitrage opportunities

• Avoid speculative price exposure and directional bets

• Provide stable, market-neutral growth in USD* value