🔃Sensei - Delta neutral Lending

What is Sensei - Delta Neutral Lending ?

There are 4 strategies available in delta neutral strategy:

• STRK Sensei

• USDC Sensei

• ETH Sensei

• xSTRK 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.

For xSTRK Sensei, we use Vesu and Re7's pools respectively.

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