Rage Trade

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Rage Trade

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Rage Trade, a protocol built on the Arbitrum blockchain, has launched their Delta Neutral GLP vaults. These vaults are built using the GMX protocol, and are designed to provide users with a way to hedge their positions in the market, reducing risk and improving the stability of their portfolios.

What is Rage Trade?

Rage Trade is a decentralized trading protocol that allows users to trade ETH perpetuals. It uses a 10x leverage system, which means that traders can enter into trades with a smaller amount of capital and potentially realize larger returns. In addition, Rage Trade is also focused on building liquidity and composability into its platform. This means that it is designed to allow traders to easily buy and sell assets, and to connect with other protocols and platforms in a seamless and efficient way. 

Rage Trade UI

This review of Rage Trade was created for informational purposes. This article is not intended for promotion.

General info about Rage Trade

What is the Delta Neutral Vault?

Rage Trade’s Delta Neutral Vaults are designed to allow users to provide liquidity on GMX while earning ETH rewards, in a way that minimizes exposure to ETH and BTC. To achieve this, the vault operates on-chain and uses a system of two separate risk vaults to perform a short on Aave and Uniswap.

As a liquidity provider, it is important to be aware that providing liquidity in high APR pools can often involve impermanent loss, which is caused by exposure to non-stable assets. One way to mitigate this risk is to use a hedging strategy, such as shorting, to offset any potential losses. By opening a short position, you can effectively hedge your exposure, so that any impermanent loss or gain will be matched by profits or losses on the short. This makes your net position so called ‘delta neutral’.

What is Risk-off vault?

The Risk-Off Vault is a low risk vault that allows users to deposit USDC and earn a leveraged yield by lending it to the Risk-On Vault. It is designed to provide a stable and secure way for users to earn returns on their USDC, while minimizing their exposure to risk.

One of the main features of the Risk-Off Vault is its ability to earn the returns that can be earned by lending USDC on the Aave platform. In addition to this, the Risk-Off Vault also earns a portion of ETH rewards from GMX based on the utilization ratio, which further increases its yield.

The Risk-Off Vault works in conjunction with the Risk-On Vault, which uses the USDC provided by the Risk-Off Vault to short the ETH and BTC exposure in GLP with an expected APY of 6-8%. 

What is Risk-On Vault?

The Risk-On Vault is a high-yield vault that allows users to earn returns on their GMX liquidity while neutralizing the price exposure of ETH and BTC. It works by taking an ETH and BTC flash loan on Balancer and using this capital to short ETH and BTC on UNI v3. It then deposits the resulting USDC on Aave and creates a short position by borrowing ETH and BTC against this collateral.

One of the key features of the Risk-On Vault is its ability to update the open short on every rebalance, which helps to ensure that the vault remains delta neutral and minimizes exposure to price fluctuations. This allows it to offer higher APYs of 15-25% compared to other vaults, making it a potentially attractive option for users looking to maximize their returns.

Use case of Rage Trade

Trading on Rage Trade

To trade on Rage Trade, you will need to connect your wallet like any other DEX. Once you have done this, you can start trading dollar margined positions with up to 10x leverage. 

One of the key benefits of trading on Rage Trade is the ability to withdraw and trade with unrealized PnL. This means that you can take profits or cut losses before a trade is settled, providing greater flexibility and control over your trades.

Providing Liquidity

As a liquidity provider (LP) on Rage Trade, you have the opportunity to provide liquidity to omnichain liquidity used in different Layer Zero protocols, which allows LPs to pool their funds in the Delta Neutral Vaults. These vaults allow users to provide liquidity on GMX in a delta neutral way, while earning ETH rewards. The addition of these vaults is expected to attract a significant amount of liquidity, which can further increase the yield for LPs.

In addition to participating in the Delta Neutral Vaults, LPs can also recycle their liquidity into Rage’s ETH perpetual contract. This allows them to continue earning rewards and potentially increase their overall returns. Overall, Rage Trade offers a range of options for LPs looking to maximize their yields and take advantage of the DeFi market.

RageTrade-Bula

Where to buy and sell Rage Trade?

What do we think about Rage Trade?

Rage Trade Airdrop?

It sounds like Rage Trade plans to offer an airdrop in the future for early users and liquidity providers, which may include the RAGE token and other tokens from partnerships. This can be a great opportunity for users to earn additional rewards and potentially realize a “risk-free” return of 6%, depending on the specifics of the airdrop and the conditions for participation.

Rage Trade conclusion

Overall,  Rage Trade can be a valuable opportunity for users to earn additional returns on their investments and maximize their returns in the DeFi market. Be sure to keep an eye out for updates and announcements about the airdrop!

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Disclaimer: Trading and investing in cryptocurrencies (also called digital or virtual currencies, altcoins) involves a substantial risk of loss and is not suitable for every investor. You are solely responsible for the risk and financial resources you use to trade crypto. The content on this website is primarily for informational purposes and does not constitute financial advice.

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