Derivatives · Delta-Neutral
Neutra Finance offers automated delta-neutral strategy vaults that pair yield-bearing positions with short hedges to target market-neutral returns on Arbitrum.
Automated delta-neutral yield strategies.
Protocol TVL
$13.7M
Latest data · 15 min delay
Packaged delta-neutral strategies (long yield asset + short perp hedge) as auto-managed vaults for passive market-neutral yield.
The flagship automated strategy vault. Users deposit DAI (later also GLP directly); the vault buys GMX's GLP liquidity token (a basket that is ~50% stablecoins and ~50% BTC/ETH and other majors) and simultaneously opens leveraged short BTC and ETH perpetual positions on GMX to hedge the volatile exposure, targeting a market-neutral return derived from GLP's fee/esGMX yield.
A proprietary rebalancing algorithm using ATR (Average True Range) to predict volatility ranges and pre-emptively rebalance the short hedge when combined asset-weight deviation plus predicted volatility exceeds an optimal threshold (~2.6%), aiming to hold delta near zero while minimizing rebalancing cost and liquidation risk.
NEU is the utility and governance token (6M max supply). esNEU is escrowed NEU distributed to NEU stakers and vault participants; it vests linearly into NEU over 12 months. Staking NEU earns protocol fees (in stablecoins), esNEU, and fee boosters.
Following a Q3 2023 strategic overhaul, the team pivoted toward a 100% Uniswap V3 delta-neutral LP strategy (backtested D7.5r15 configuration: 7.5% debt ratio, 15% tick spread), intended to replace the GLP vault. As of the last public updates the optimized parameters were still being finalized and the strategy had not been confirmed as fully launched.
6,000,000 NEU
CoinMarketCap - Neutra Finance$3.54 on 2023-02-08 (~99% below ATH as of capture)
CoinMarketCap - Neutra Finance~9.77% net annual APR (June-November 2022 backtest, after rebalancing costs) vs ~20% raw GLP APR
Neutra Finance - Delta Neutral GLP Strategy (Medium)How Neutra Finance maps onto established TradFi structures, and where it diverges.
Market-neutral / long-short hedge fund
Neutra Finance
Like a market-neutral hedge fund, the nGLP vault paired a yield-bearing long position (GLP) with offsetting shorts (BTC/ETH perps) so returns came from carry/yield rather than directional market moves, targeting positive returns in any market direction.
TradFi analogue
Fully on-chain, non-custodial, and automated by smart contracts rather than a fund manager; returns depended on DeFi-native yields (GLP fees, esGMX) and were exposed to smart-contract, oracle, and perp-funding risks absent in a traditional fund. No investor accreditation, lockups managed by contracts, and no legal fund wrapper or redemption guarantees.
Neutra Finance team
Pseudonymous core team The protocol was built and operated by a small, largely pseudonymous team publishing under the 'Neutra Finance' identity on Medium and X. No verified individual founder identities are publicly documented; the team collaborated with GMX, RoboLabs, and CertiK on the V2 vault.
Key milestones: launches, upgrades, exploits and governance events.
GLP delta-neutral strategy design
ExecutedInitial delta-neutral GLP vault concept and backtests published.
SourcenGLP Vault V2
ExecutedInstant deposits/withdrawals, GLP deposits, 8x short leverage, deflationary NEU.
SourceUniswap V3 delta-neutral pivot (stated)
StatedPlanned transition to a 100% Uniswap V3 delta-neutral vault; optimized parameters stated as not yet finalized/launched.
SourceNeutra Finance is an Arbitrum-based protocol offering automated 'strategy vaults' that target market-neutral (delta-neutral) returns. Its flagship product paired long GLP exposure with short BTC/ETH perpetual hedges on GMX so that depositors could earn GLP's yield without directional BTC/ETH price risk.
It appears effectively inactive/wound down. Public activity stopped after early 2024, the NEU token trades near all-time lows with negligible volume (roughly single-digit-dollar daily volume), and the primary website domains no longer resolve. Treat the protocol as abandoned or dormant and do not assume the vaults are safely operating.
Users deposited DAI (or GLP). The vault allocated capital into GLP (a GMX liquidity basket) and opened leveraged short BTC and ETH perpetuals on GMX to offset the basket's volatile assets, leaving a roughly delta-neutral position that harvested GLP fee/esGMX yield. An ATR-based algorithm rebalanced the hedge automatically.
NEU is Neutra's utility and governance token (6M max supply). esNEU is escrowed NEU rewarded to stakers and vault users; initiating vesting converts esNEU into NEU linearly over 12 months. Staking NEU shares protocol fees (a 2% annual management fee and 20% performance fee are split 50/50 between operations and staker rewards).
Yes. The vault contracts were audited by SolidProof (report published in the SolidProof GitHub projects repository) and the protocol also underwent a CertiK audit (delivered April 2023).
