Delta-neutral is an investment strategy that utilizes multiple positions with positive and negative deltas so that the overall delta of the assets totals zero. It is typically used in crab markets in order to earn yield with minimizing directional exposure.
Delta One's farming vaults achieve this payoff by taking the positive delta exposure of an LP position (i.e. SOL-USDC) and combining it with the negative delta position of borrowing an asset from a stake pool.
As the values of the underlying assets change, a user may lose their delta neutrality. Investors who want to maintain delta neutrality must adjust their portfolio holdings accordingly, which can be done using the rebalancer feature on Delta One.
Below is a plot of the pseudo-delta neutral payoff from LP'ing in a farming vault: