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Onchain Economics
Yield

Delta-Neutral

A position structured to have no directional exposure to price movements, isolating other yield sources.

In-Depth Explanation

Delta measures sensitivity to price changes. Delta-neutral strategies combine offsetting positions (e.g., long spot + short perps) so gains on one leg offset losses on the other. This isolates yield from funding rates, LP fees, or other sources without taking directional risk. True delta-neutrality requires continuous rebalancing as prices move.

Related Terms

Basis Trade

An arbitrage strategy exploiting the price difference between spot and futures/perpetual markets.

Perpetual Futures

Perps

Futures contracts with no expiration date that track an underlying asset's price through a funding rate mechanism.

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Mercenary Capital

Capital that moves between protocols purely to chase the highest incentives, with no loyalty or long-term commitment.

Annual Percentage Yield

APY

The annualized return on an investment accounting for compound interest.

Annual Percentage Rate

APR

The annualized return on an investment without accounting for compounding.

Real Yield

Yield derived from actual protocol revenue and economic activity, not token emissions or inflation.

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