For Traders

How Vanna Works for Traders (Leveraged Borrowers):

1. Opening a Margin Account:

• A Trader opens a Margin Account by depositing collateral into the system. Supported collateral types include native assets such as ETH, WBTC, and stablecoins, along with LSTs (Liquid Staking Tokens) and LRTs (Liquid Restaking Tokens).

2. Borrow Under-Collateralized Loans:

• Once the trader has provided sufficient collateral, they can borrow up to 10x leverage from the Lending Pool. This leverage allows traders to access significantly more capital than their collateral alone would provide.

• The borrowed amount is deposited into their margin account as a margin balance, which can only be used within the approved set of protocols integrated into Vanna.

3. Deploy Capital Across Derivatives Protocols:

• Traders can then deploy their borrowed funds in various Derivative Protocols, such as:

• Perpetual Contracts via GMX and MUX for leveraged trading.

• Options Trading via Lyra and Aevo.

• Spot Trading via Uniswap and 1inch.

4. Adjust Position Using Greeks Dashboard:

• Vanna offers a hedging dashboard, allowing traders to optimize and hedge their positions in real-time based on Greek metrics (such as delta, gamma, and theta).

• This tool enables traders to implement delta-neutral strategies or other hedging techniques while keeping track of their margin account’s health factor.

5. Repay Loan & Withdraw Profits:

• As traders close their positions, they must repay the borrowed amount to the lending pool, along with any accrued interest.

• Once the borrowed amount and interest are fully repaid, any remaining collateral in the margin account is available for withdrawal by the trader, including any profits they’ve made.