Skip to main content
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.

​
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.

​
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.

​
Example

USDC supplied to Earn (Leg 1)$500 USDC
USDC Earn APY8% → earns $40/year
USDC Margin collateral (Leg 2)$400 USDC
XLM borrowed (at conservative LTV)$200 worth of XLM
XLM deployed to Blend XLM pool$200 worth of XLM
Blend XLM Supply APY12% → earns $24/year
Vanna XLM Borrow APR8% → costs $16/year
Net annual yield (both legs)40+40 + 24 − 16=16 = 48
Total capital deployed900(900 (500 Earn USDC + $400 Margin USDC)
Net XLM price exposureZero
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.

​
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.

​
Risk profile

RiskLevelNotes
USDC price riskNoneUSDC is USD-pegged
XLM price riskNoneXLM farm and XLM debt cancel each other exactly
Liquidation riskLowHF on the carry leg only changes from accruing interest
Rate risk (Earn leg)LowUSDC Earn APY fluctuates with pool utilization
Rate risk (Carry leg)MediumXLM carry turns negative if borrow rate exceeds Blend supply rate
Smart contract riskLowInherent to all on-chain protocols

​
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.