Rage Trade

Rage Trade is an Arbitrum-native derivatives protocol offering delta-neutral vaults (e.g. recycling GLP yield while hedging its market exposure) and omnichain perpetual-futures liquidity.

Delta-neutral strategy vaults that hedge external LP positions (like GMX's GLP) to isolate yield from directional risk.

- Delta-Neutral GMX GLP Vaults (Risk-On / Risk-Off): Two complementary Arbitrum vaults launched atop GMX. The Risk-On vault deposits sGLP (staked GLP) and hedges GLP's embedded BTC/ETH exposure by opening short positions on Aave (via a Balancer flash loan sold on Uniswap), isolating the GLP fee/esGMX yield. The Risk-Off vault lets USDC depositors earn a leveraged yield by lending USDC to the Risk-On vault, providing the borrow liquidity for the hedge. - Omnichain Perpetuals & 80-20 Vaults: A composable ETH perpetual-futures protocol built on Uniswap V3 (RageTrade 'core'). The 80-20 vault keeps ~80% of TVL earning yield in the source protocol (isolated risk) while ~20% is used as virtual concentrated liquidity on Rage. LayerZero passes cross-chain messages and Stargate bridges USDC PnL, enabling omnichain recycled liquidity so LPs on AMMs across supported chains can deposit into Rage vaults. - Perp Aggregator (Rage V2): A later pivot into a perpetuals aggregator / SDK routing orders across multiple perp DEXs for best price and aggregated liquidity across chains, exposed via the Perp-Aggregator-SDK and integration tooling.

- RAGE (RAGE) — Token, Governance & utility token

- Smart Contract: Complex vault logic involving flash loans, Aave positions and cross-protocol composability creates a broad attack surface; a bug in the delta-neutral or omnichain contracts could cause loss of deposits despite the Sherlock audit. - Counterparty: The strategy is fully dependent on external protocols (GMX/GLP for yield, Aave for the hedge borrow, Balancer/Uniswap for execution, LayerZero/Stargate for messaging and bridging); failure, insolvency, or parameter changes at any of these breaks the strategy. - Oracle: GLP valuation and the BTC/ETH hedge sizing rely on accurate price feeds; oracle manipulation or staleness could misprice the hedge, leaving the vault directionally exposed or subject to bad liquidations. - Reserve / Depeg: The hedge can drift from true delta-neutrality (basis/funding divergence, rebalancing lag, or Aave borrow-rate spikes), so the vault may retain residual market exposure and underperform or incur losses during sharp moves. - Network: Omnichain design depends on LayerZero and Stargate bridging; cross-chain message failures, bridge exploits, or Arbitrum sequencer downtime could delay rebalancing/hedging and strand PnL in transit. - Systemic: As a wound-down protocol, ongoing/tail risk exists around final distributions, unclaimed vault deposits, and reliance on source-protocol interfaces for legacy positions after the app was shut down.

- Market-neutral / delta-neutral hedge fund: similar — The Risk-On GLP vault mirrors a classic delta-neutral strategy: hold a yield-bearing asset (GLP) and short the underlying market exposure (BTC/ETH) so returns come from carry/fees rather than price direction.; differs — Fully on-chain, non-custodial, and permissionless with transparent smart-contract execution; hedging is automated via flash loans and Aave rather than through prime brokers, and it carries smart-contract and DeFi composability risks absent in a traditional fund. - Structured-note / covered-yield product on an index: similar — Packages a complex derivatives strategy into a one-click deposit product that abstracts the hedging mechanics for the end user, similar to a structured yield note referencing an underlying basket.; differs — No issuer credit backstop or principal guarantee; yields float with on-chain funding and GMX fee generation, and liquidity/redemption depends on protocol solvency and oracle correctness.