Skip to main content

Delta-Neutral Yield Strategies in Perps

When a trader opens a position on a perp DEX, their trade is matched against either another trader (via orderbook), a liquidity pool (via AMM), or a hybrid system. These design choices affect hedging accuracy, slippage, and rebalancing frequency

DeFi-Perps-types

Architectural types of perp DEXs:​

  • Orderbook (on/off chain): Hyperliquid, dYdX v4, Vertex

  • AMM-based: GMX, Jupiter, Ostium

  • Hybrid: Drift (vAMM + on-chain orderbook)

Hyperliquid — Orderbook Model with Native Liquidity Vault​

  • Built on HyperBFT, a custom Layer 1 with HyperEVM

  • Liquidity providers deposit into Hyperliquid Provider (HLP), which absorbs unmatched flow

  • Yield comes from trading fees and funding imbalance

  • Hedging requires querying net open interest via API

  • Transparent, index-based funding rates

GMX — AMM-Based Perpetuals on Arbitrum​

  • GM pools act as counterparties to traders

  • Vaults like hedged GLP/GM earn predictable fees but face drift risk

  • Per-asset funding uses borrow-fee based model

  • Suitable for passive vaults and less frequent rebalancing

  • Funding skew determines borrowing cost

Drift — Hybrid Model on Solana​

  • Combines virtual AMM (vAMM) and Just-In-Time market making via DLOB

  • Native support for programmable strategy vaults

  • Epoch-based resets for efficient rebalancing

  • Cross-margin and isolated markets allow multi-asset hedging

  • Capped, dynamically tuned funding rates

These models determine whether a hedge earns or pays funding, affecting overall strategy returns.