Diamond Protocol
Diamond is a modular vault protocol where #DeFi strategists can build and deploy on-chain strategies without writing code. Diamond Protocol aims to be the Super Carrier of DeFi vaults and strategies. DeFi strategists can generate their vaults and deploy multiple strategies manifested on-chain by using Diamond’s vault factory, smart contract templates, and user interfaces.
USDC Cash & Carry Vault
This vault accepts USDC and uses the USDC to create a delta-neutral position to earn funding rates. This vault executes the strategy using a partner perp market Perpetual Protocol on Ethereum Layer 2 Optimism.
Basis Trading Strategy
This strategy purchases ETH spot and short ETH with the same size using perp so the position is delta neutral. The funding rate will be paid by traders who long ETH using perp.
Flow of Vault and Strategy
- Users can deposit USDC into this vault
- Vault transfers the USDC to Strategy
- Strategy purchases ETH spot in Uniswap V3
- Strategy deposits USDC into Perpetual Protocol and opens ETH shot position with the same size in step 3
- Strategy keeper will manage the strategy to take profit, report loss or rebalance between spot and shot positions
- Users can withdraw USDC from the vault anytime
What Is Cash & Carry?
- Cash and Carry is a strategy that arbitrages using spot and futures. In our design, we create a delta neutral position by buying spot assets and shorting perpetual futures at the same time, and arbitrage the funding rates on Perpetual Protocol.
Fee
- Performance Fee: 10%
- Management Fee: 1%