Sample Strategies

Comprehensive Strategy Overview: Managing Borrowing, Hedging, and the Greeks Dashboard

Welcome to the Sample Strategies section of Vanna Protocol, where we showcase how traders can effectively combine perpetuals, options, and spot markets for optimal risk management and returns. This section provides a comprehensive overview of various trading strategies, focusing on how to borrow, manage collateral, and use the Greeks Dashboard for monitoring health factors and avoiding liquidation. These strategies leverage the unique advantages of Vanna’s multi-layered approach, allowing traders to hedge, optimize, and dynamically adjust their positions across multiple markets.

Step 1: Borrowing and Managing Collateral

• The trader starts by depositing 1 ETH (worth $2,500) as collateral and borrows $5,000 from Vanna’s lending pool using 2x leverage. This margin balance will be the trader’s capital for executing multi-layered strategies.

Health Factor Management:

• The health factor is critical here. The Greeks Dashboard helps monitor the risk of liquidation by showing how close the account is to the liquidation level. As the trader borrows and deploys their margin balance, the dashboard provides alerts when the health factor drops below a safe threshold, signaling the need for adjustments.

Step 2: Deploying Multiple Strategies Across Perpetuals, Options & Spot Markets

Step 3: Managing Risk and Avoiding Liquidation Using Greeks

Health Factor & Collateral Monitoring

• Throughout the different strategies, the Greeks Dashboard will provide alerts about the health factor of the margin account. If the health factor drops due to market volatility or excessive leverage, the dashboard will indicate the proximity to liquidation.

• The trader can prevent liquidation by adjusting collateral, scaling down positions, or adding hedges, as indicated by the metrics provided by the dashboard.

Comprehensive Benefits of Using Greeks Dashboard for Multi-Strategy Management

• Real-Time Risk Insights: The Greeks Dashboard provides traders with real-time information on delta, gamma, theta, and vega, helping them manage risk across multiple strategies effectively.

• Cross-Market Monitoring: Traders can simultaneously monitor options, perpetuals, and spot positions, gaining a holistic view of their entire portfolio and ensuring that risk is mitigated at all times.

• Health Factor Alerts: The dashboard continuously tracks the health factor of the margin account. By receiving real-time alerts, traders can avoid liquidation by adjusting their margin, collateral, or reducing position sizes.

• Hedging Strategies: With hedge mode enabled, traders can easily balance long and short positions across markets, maintaining a stable margin account even in volatile conditions. Using the Greeks Dashboard, they can dynamically hedge their positions based on real-time metrics.\

• Enhanced Profitability: By integrating the Greeks Dashboard into multiple strategies, traders can optimize their use of leverage, protect themselves from downside risk, and maximize returns while maintaining a strong margin health factor.

In summary, the Greeks Dashboard acts as a real-time risk and optimization tool for traders employing multi-market strategies. By borrowing on leverage, monitoring liquidation levels, and dynamically managing positions across spot, perpetual, and options markets, traders can ensure that their positions remain healthy and profit-maximizing while avoiding unnecessary liquidation risk.