LPs and the hedge calculator

What a position earns in a Liquidisium pool and how to make it delta-neutral on HyperCore.

What a position earns

Positions are Uniswap v4 NFTs from the PositionManager on Elysium (0x1d1C…E518). They earn the 0.05% base on every swap, 80% of the gap part on every swap that closes a gap, and 0.30% on fallback swaps. Add and remove on /lp. The contracts are unaudited.

The hedge

Above P the position holds HYPE; that amount is the perp short that hedges it now.

For liquidity L in [pa, pb] at price P, the HYPE in the position is x = L · (1/√P − 1/√pb). A short of x HYPE on the HyperCore HYPE perp makes it delta-neutral now. The calculator at /lp/hedge reads a position by token id, shows the delta change per 1% move and the current funding from metaAndAssetCtxs.

Automatic hedging

With EL1Write, a hedge vault holds opted-in positions and its keeper keeps a perp short equal to their HYPE delta at each epoch. Funding and PnL return to each position pro rata.