Synthetic Staking
  • Page
  • ⚛️What is synthetic staking?
  • ⚖️How does this generate yield?
    • Cash and Carry Arbitrage
    • Hedged Carry Trade
    • Airdrop Farming
    • Depeg Arbitrage
  • 🪙ySOL and yUSD Tokens
  • 🤝Deposit
  • 🙏Withdrawal
  • 📈Pool performance
  • 💸Costs and Fees
  • ⚠️Risks and disclaimers
  • 🏊‍♂️Pool limits
  • 🔮Oracles
  • ❓FAQ
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  1. How does this generate yield?

Hedged Carry Trade

A hedged carry trade involves longing a yielding asset while hedging through the shorting of another asset. The goal is to capture yield while keeping the target exposure of the underlying asset in the pool.

An example of hedge carry trade is leverage longing a liquid staking token (LST) or SOL like INF while shorting an equivalent amount of SOL on a futures or lending market.

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Last updated 8 months ago

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