🔃Sensei - Delta neutral Lending

What is Sensei - Delta Neutral Lending ?

There are 3 strategies available in delta neutral strategy:

• STRK Sensei

• USDC Sensei

• ETH Sensei

Deposit your STRK/ USDC/ ETH to automatically loop your funds between zkLend and Nostra to create a delta neutral position. This strategy is designed to maximize your yield on USDC/ STRK/ ETH. Your position is automatically adjusted periodically to maintain a healthy health factor. You receive a NFT as representation for your stake on STRKFarm. You can withdraw anytime by redeeming your NFT for USDC or STRK or ETH. For upto 2 weeks, your position value may reduce due to high borrow APR. This will be compensated by STRK rewards.

Why?

Using the Sensei strategy in STRKFarm offers several benefits:

• Expertly Curated Strategies: Sensei Strats are designed by experienced DeFi strategists, ensuring optimal asset allocation and yield optimization.

• Diversification: These strategies often include a mix of assets and protocols, reducing risk through diversification.

• Automatic Risk Management: health of the contracts are monitored in real time and automatically rebalanced, allowing for a hands-off investment approach.

• Enhanced Returns: By leveraging advanced strategies and automated compounding, Sensei Strats aim to maximize your returns efficiently.

Technical details:

Contract style - ERC721

Technical flow of funds

Assuming you deposit $1000 worth of STRK to STRK sensei, initially your tokens will be deposited to zkLend supply. Based on the $1000 deposit in ZkLend, a borrow will be taken equivalent to $384.21 of ETH which is calculated such that we maintain a target health factor (e.g. 1.3) overall from ZkLend which will be deposited to Nostra Money Markets' ETH supply. Furthermore, approximately $189.149 of STRK is borrowed from Nostra Money Markets corresponding to the $381.21 of ETH supplied which is again calculated such that we maintain a target health factor. The same process of depositing STRK starts from the beginning by depositing Nostra's borrow to ZkLend supply and the whole process is repeated 3 more times.

In conclusion, 4 steps of borrows of supply and borrow are taken which compounds the overall interest of user's deposit to a higher TVL. Furthermore, every 2 weeks, the strategy deposits your STRK rewards to ZkLend which appreciates your interest even more.

Risk management

TBD