If you’re familiar with the crypto markets, you’ve probably heard of yield farming, a trading technique in which cryptocurrency investors lock up their holdings in exchange for incentives in the form of more cryptocurrency. Yield farmers effectively lend cryptos out via DeFi protocols in exchange for a set or variable rate of interest. Rather than waiting for their bitcoin, ether, or other digital assets to appreciate in value, cryptocurrency owners may now benefit by simply lending out their holdings. And despite the risk of losing all you’ve put into it, yield farming has been increasingly popular in recent years as a result of the huge returns it may give.
With the development of yield farming and DeFi, crypto derivatives – secondary contracts or financial tools that draw their value from a main underlying asset – have also grown in popularity and use. Essentially, they let investors wager on the price of crypto assets. To put it another way, you’re not trading the underlying asset; instead, you’re getting exposure to it through a secondary mechanism. Common examples of crypto derivatives include futures, options, perpetual swaps, etc.
However, in order to get the most out of these products, traders – both novice and experienced – require a reliable derivatives trading platform. This is where Delta Exchange, a one-of-its-kind crypto derivatives trading platform, comes in. Delta Exchange offers exciting yield farming and robo-trading strategies that allow investors to make the most out of their holdings.
Here’s everything you need to know about robo-trading and yield farming strategies on Delta Exchange.
Robo-trading strategies on Delta
Robo-trading uses predetermined parameters to perform trades on an exchange using the exchange’s API, thereby making it safer, more effective, quicker, and easier to use while also allowing the user to earn daily gains. Furthermore, because the bot’s algorithm monitors the market for you, trading bots allow you to spend less time doing the same.
Let’s take a look at the different robo-trading strategies available on Delta Exchange.
1. Top 20 momentum
The Top 20 momentum strategy invests in the top 20 cryptocurrencies by market capitalization. This strategy expects to perform well in a volatile market and can accept maximum gross leverage of 2x.
2. Top 2 momentum
The Top 2 momentum strategy exclusively trades in BTC and ETH. It aims to increase performance while lowering drawdown by maximizing the holding duration for winning transactions and minimizing it for losing ones.
3. DeFi momentum
This strategy invests in top DeFi assets on the basis of their market capitalization. Based on price momentum, it takes long or short directional bets.
4. BTC momentum
Only BTC inverse perpetual is traded in the BTC momentum strategy.
5. ALT BTC momentum
The ALTBTC momentum strategy trades major altcoin pairings and uses market momentum to take long or short directional bets.
6. Large cap AMM
The large cap AMM strategy is an AMM (automated market maker) that aims to benefit by providing liquidity on the books of large cap currencies. The goal of this strategy is to gain by collecting the premium that liquidity seekers are prepared to pay over the fair price.
7. BTCUSD AMM
This strategy supplies bids and offers to order books on Delta Exchange’s BTCUSD inverse contracts. Only BTC may be used to contribute to the strategy.
8. Cash future arbitrage
Cash Future Arbitrage is a strategy that uses the premium in Bitcoin and Ethereum futures over their spot market prices to make profits. It can also earn money by trading perpetuals and spot pairs in a market-neutral setup.
9. DETO staking pool
DETO Staking pool allows you to earn risk-free yield on your DETO tokens. When you enter the DETO staking pool, you stake your DETO (Delta Exchange Token) in the pool and earn a pre-defined DETO APY on a daily basis.
Let us now look at the various yield farming strategies of Delta Exchange.
Yield farming strategies on Delta Exchange
1. Enhanced Yield BTC
The Enhanced Yield BTC strategy involves selling BTC at a higher price on a specific date to increase the yield on BTC holdings. It’s best suited for investors who think Bitcoin’s gain is limited in the short term.
2. Enhanced Yield ETH
This strategy generates yields by writing monthly call options and has no risk of liquidation because the notional amount written is equal to the value of ETH. However, if the price of ETH rises dramatically, this strategy may lose money.
3. Enhanced Yield USDT
This strategy generates yields by writing monthly put options, and it, like the Enhanced Yield ETH strategy, has no risk of liquidation because it writes a notional amount equal to the USDT value. However, if the price of ETH falls sharply, this strategy may lose money.
Get started with Delta Exchange today!
To learn more about the various robo-trading and yield strategies, as well as the returns they provide and their historical performance, head over to the Delta Exchange website.
You can also stay updated on Delta’s Twitter, Facebook, Telegram, and Medium channels.
