> For the complete documentation index, see [llms.txt](https://iaero-protocol.gitbook.io/delta-neutral-yield/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://iaero-protocol.gitbook.io/delta-neutral-yield/getting-started/readme.md).

# Overview

**Automated delta-neutral yield farming on Base**

Delta Neutral Yield is a DeFi protocol that generates sustainable yield from concentrated liquidity pools while eliminating price exposure through perpetual futures hedging.

## Two Vault Strategies

Choose the vault that matches your risk tolerance:

| Vault                                                                  | Symbol | Risk   | Pool Types | Hedge Mode     | Target APY |
| ---------------------------------------------------------------------- | ------ | ------ | ---------- | -------------- | ---------- |
| [Delta Neutral](/delta-neutral-yield/vault-strategies/conservative.md) | dnVS   | Low    | V-S only   | Always neutral | 40-60%     |
| [Directional](/delta-neutral-yield/vault-strategies/directional.md)    | dnDIR  | Medium | V-S only   | Signal-based   | 20-100%+   |

### Quick Strategy Guide

* **Delta Neutral (dnVS)**: Best for risk-averse investors. Only blue-chip V-S pools, always hedged. 57.7% annual return validated across 50,000+ simulations.
* **Directional (dnDIR)**: For those who want some market exposure. Signal-based hedging captures upside.

## What Problem Does This Solve?

Traditional liquidity provision exposes you to:

* **Impermanent Loss (IL)**: When token prices move, LPs lose value compared to holding
* **Price Risk**: Your portfolio value fluctuates with token prices
* **Active Management**: CL positions require constant rebalancing

Delta Neutral Yield solves these problems by:

1. Automatically hedging crypto exposure with perpetual shorts
2. Managing concentrated liquidity positions for optimal yield
3. Rebalancing positions to maintain delta neutrality
4. Compounding rewards back into the strategy

## Quick Links

| Resource                                                                     | Description               |
| ---------------------------------------------------------------------------- | ------------------------- |
| [Strategy Overview](/delta-neutral-yield/vault-strategies/overview.md)       | Compare all three vaults  |
| [How It Works](/delta-neutral-yield/introduction/how-it-works.md)            | Understand the mechanics  |
| [Getting Started](/delta-neutral-yield/user-guide/getting-started.md)        | Start using the protocol  |
| [Risks](/delta-neutral-yield/user-guide/risks.md)                            | Understand the risks      |
| [Contract Addresses](/delta-neutral-yield/technical-reference/deployment.md) | Verify deployed contracts |

## Key Metrics

| Parameter         | Value              |
| ----------------- | ------------------ |
| Target Allocation | 80% LP / 20% Hedge |
| Minimum Deposit   | 10 USDC            |
| Performance Fee   | 10% of profits     |
| Supported Chain   | Base               |

## How It Works (TL;DR)

```
1. Choose a vault → Conservative or Directional
2. Deposit USDC → Receive vault shares
3. Protocol deploys to CL pools on Aerodrome
4. Crypto exposure is hedged on Hyperliquid (per strategy)
5. AERO rewards are harvested and compounded
6. Withdraw anytime → Receive USDC + yield
```

## Contract Addresses (Mainnet) - V7

### Conservative Vault (dnVS)

| Contract    | Address                                      |
| ----------- | -------------------------------------------- |
| Vault       | `0xf8c574151f7d04ca5b86a315eb99e1723e35b856` |
| VaultSwapV4 | `0x87b1ef45878809400fe22ae62acad259ebd7cf5c` |

### Directional Vault (dnDIR)

| Contract    | Address                                      |
| ----------- | -------------------------------------------- |
| Vault       | `0xf98446c91669eb801cc71970646bad5b1a350e1a` |
| VaultSwapV4 | `0xcdabcbb3876358f2eac5448e3212ec3469fa368e` |

[See all contract addresses](/delta-neutral-yield/technical-reference/deployment.md)

## Security

* 24-hour timelock on admin functions
* Multi-sig ownership
* Rate-limited price updates
* Circuit breakers on bridge volume
* Isolated Hyperliquid sub-accounts per vault

## Get Started

Ready to earn delta-neutral yield?

1. [Compare strategies](/delta-neutral-yield/vault-strategies/overview.md)
2. [Understand the risks](/delta-neutral-yield/user-guide/risks.md)
3. [Connect and deposit](/delta-neutral-yield/user-guide/depositing.md)

***

*Built on Base. Powered by Aerodrome and Hyperliquid.*