Flynt Finance, an up-and-coming cryptocurrency wealth management platform, has introduced a new investment strategy for its clients. The USDC delta neutral strategy uses GMX’s GLP, a decentralized cryptocurrency derivatives exchange’s liquidity pool, to provide a stable source of income by neutralizing the exposure to price changes of underlying assets whilst earning high returns through the fees generated from the exchange.
GMX’s platform has experienced rapid growth, with a trading volume of over $70 billion, and traders can use leverage of up to 50x. Additionally, the GLP pool which earns 70% of the exchange’s fees from swaps, lending, and liquidation has recently paid out an annual percentage rate (APR) of 31.99% to the liquidity contributors making it an attractive option for long-term investors. However, simply staking GLP will open the investor up to fluctuations in price like an ETF. Flynt neutralizes these fluctuations using futures and extracts these fees for their users. Backtest results have shown that this strategy has the potential for high returns, with a specific management setting recording high returns reaching up to 23.43% APY despite lower volumes during the sustained bear market. Live results have also shown to be consistent with the backtests and the Total Value Locked (TVL) has increased by over 112% since inception.
Flynt is well-known for its commitment to transparency and security in its operations. The platform releases proof-of-funds on a weekly basis and the trades of the operated strategies to ensure investors are clearly informed of the allocation of funds. The company also employs advanced security measures, such as two-factor authentication and cold storage, to protect clients’ funds.
David, the CEO of Flynt Finance, said, “We have made the strategy very unique with in-depth backtesting discovering a sweet spot for yield maximization. Our goal is to maximize profits for our users in a safe and transparent way.”
Flynt Finance’s new strategy is a smart choice for investors looking to diversify their cryptocurrency portfolios while remaining in the crypto space. It offers a valuable addition to the current investment options available in the industry.