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Sections used: Earn · Margin · Farm  ·  Delta exposure: None  ·  Risk level: Low–Medium  ·  Complexity: Medium
Supply USDC to Vanna’s Earn pool for passive stablecoin yield. At the same time, deposit USDC as Margin collateral, borrow XLM, and supply the borrowed XLM to a Blend XLM single-asset pool. The two strategies run independently and in parallel - each with no directional price exposure - producing two separate yield streams from the same capital base.

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Why this is delta-neutral

Earn leg (USDC): USDC is a USD-pegged stablecoin. Supplying it to Earn carries no meaningful price risk. Carry leg (XLM): Your borrow is denominated in XLM and your farm position is denominated in XLM. Any XLM price movement affects both equally and cancels out - leaving only the rate spread as the source of return. Combined, neither leg has directional exposure. The strategy earns from two rate differentials - the USDC lending yield and the XLM carry spread - running simultaneously without either one affecting the other.

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How to execute

1

Supply USDC to Earn

Go to Earn → select the USDC pool → Supply your USDC. Your vUSDC tokens begin accruing yield immediately. No further action needed on this leg.
2

Open a Margin Account

Go to Margin → Open Account if you don’t have one yet. See Open a Margin Account.
3

Deposit USDC as Margin collateral

Go to Margin → Deposit & Borrow → deposit USDC from your wallet. This backs the XLM borrow independently of the Earn position.
4

Borrow XLM

In the borrow panel, select XLM as the borrow asset. Keep Health Factor at 1.5× or above. Since your XLM farm and debt will cancel each other on price, HF is insulated from XLM price moves - the main risk is accruing interest.
5

Supply borrowed XLM to the Blend XLM pool

Go to Farm → Single-Asset Pools → select the Blend XLM pool → enter your full XLM balance → click Add Liquidity and confirm. This leg is now live alongside the Earn position.

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Example

Both legs must independently be profitable. The carry leg earns positively only when Blend XLM supply APY exceeds Vanna XLM borrow APR. Monitor each leg’s rates separately.

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Managing the two legs

The Earn leg and the carry leg are independent - you can adjust or exit either one without affecting the other.
  • To exit the Earn leg: Go to Earn → Withdraw → redeem your vUSDC tokens.
  • To exit the carry leg: Go to Farm → remove XLM liquidity from Blend → go to Margin → Repay → repay the XLM borrow → withdraw USDC collateral.

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Risk profile

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What to monitor

Carry leg rate spread - Check the Vanna XLM borrow APR vs Blend XLM supply APY periodically. If the spread inverts, exit the carry leg while keeping the Earn leg intact. Health Factor - Only the carry leg has a Margin Account and therefore a Health Factor. Monitor it separately from the Earn position.