Delta One is a non-custodial protocol for liquidity provisioning and staking strategies. Delta One removes the complexity of LP'ing in an AMM by allowing anyone to craft their ideal portfolio in a few clicks. From lending to delta-neutral LP'ing, Delta One provides the best access to DeFi-native, risk-adjusted return generation strategies for DAOs, individuals, and traditional institutions.
Currently, Delta One offers two types of vaults: staking and farming. Staking vaults allow bag holders to earn yield on almost any asset that may be sitting in their wallet (SOL, RAY, mSOL, etc.), and the farming vaults allow users to earn passive yield in a crab market by depositing the base asset of a pool (USDC, SOL, mSOL, etc.).
While everyone has a different risk-reward tolerance, we believe that most investors should not be doing manual asset management; yield farming, for instance, requires manual rebalancing, scouting for higher APY pools, and still holds the risk of impermanent loss. Automated and insured markets through structured strategies is the only way DeFi can reach mass adoption (1B+ users), and we are confident that Delta One on Solana is the place where that scale of adoption will start.
The Delta One Protocol is a peer-to-peer system designed for liquidity provisioning on the Solana blockchain. The protocol is implemented as a set of smart contracts, designed to prioritize censorship resistance, security, self-custody, and to function without any trusted intermediaries who may selectively restrict access.
Delta One should function in perpetuity, with 100% uptime, provided the continued existence of the Solana blockchain.
Delta One is a way for users to market make in DeFi, and in order to understand that, let's look at how the Automated Market Maker design deviates from traditional central limit order book-based exchanges, and how permissionless systems depart from conventional permissioned systems.
A permissionless design means that the protocol's services are entirely open for public use, with no ability to selectively restrict who can or cannot use them. Anyone can swap, provide liquidity, or create new markets at will. This is a departure from traditional financial services, which typically restrict access based on geography, wealth status, and age.
Why Solana? DeFi on Solana has a distinct advantage of high throughput (tps) at low transaction costs, fast settlement times, which makes it a natural fit for the rebalancing requirements to maintain an investors specified exposures across market conditions In addition, the rate of developer innovation, highest among any Layer 1, gives us a great ecosystem to grow with.
Delta One is a community of liquidity providers and we come in many forms
An AMM ecosystem is primarily comprised of three types of users: liquidity providers, traders, and developers. Liquidity providers are incentivized to contribute tokens to common liquidity pools. Traders can swap these tokens for one another for a fixed fee that goes to liquidity providers.
Liquidity providers (LPs) are not a homogenous group:
Passive LPs are token holders who wish to passively invest their assets to accumulate trading fees.
Professional LPs are focused on market making as their primary strategy. They usually develop custom tools and ways of tracking their liquidity positions across different DeFi projects.
DAOs choose to become LPs to create a liquid marketplace for their token. This allows tokens to be bought and sold more easily, and unlocks interoperability with other DeFi projects. This is also a great way to earn yield on a typically static treasury!