Overview
Carry Trade Strategy Overview
Our carry trade strategy leverages PiggyBank vault infrastructure to generate yield on xStocks through carry trade. It captures the spread between Kamino xStocks market borrowing rate and or proprietary market neutral strategy powered by funding rate arbitrage.
Strategy Components
The strategy involves:
xStock deposits from users
Collateralization on Kamino
USDC borrowing and bridging
Arbitrage execution on Arbitrum
Performance realization back to xStocks
Why This Strategy
xStocks represent tokenized stocks on Solana. By using them as collateral, we can:
Borrow stablecoins at competitive rates
Access arbitrage opportunities on other chains
Generate yield beyond holding returns
Integration Points
The strategy integrates with:
Kamino - For collateralized lending
CCTP - For cross-chain USDC transfers
Arbitrum - For arbitrage execution
Jupiter - For swap operations
Risk Management
The strategy manages risk through:
Conservative loan-to-value ratios
Automated position monitoring
Epoch-based settlement
Performance tracking per epoch
Direct USDC Deposits
Users can also deposit USDC directly. This bypasses the collateralization step and goes straight to the arbitrage vault on Arbitrum.
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