A Sneak Peek into Perp Protocol's Hot Tub Vaults

•

What’s up degens, do you want to get a sneak peek of “Hot Tub” 🛁, the new vaults by @perpprotocol? In this thread, I’ll break down ♨️What is Hot Tub ♨️How it works ♨️1 week's performance ♨️How you can join the party Let’s get started! 🧵 👇

1/9 ♨️What is Hot Tub? @perpprotocol hot tub is an innovative way to earn on your $ETH or $USDC by using an efficient arbitrage algorithm on Perp and other DeFi platforms. You can deposit your funds in a vault and relax in the hot tub while it generates returns for you. twitter.com/perpprotocol/status/1638180095226413058?s=20

2/9 ♨️How it works? $USDC vault in Hot Tub makes money by arbitraging $ETH prices on Perp and Uniswap. It buys spot ETH on Uniswap and short ETH on Perp in one transaction when the ETH Perp price is higher. It sells ETH on Perp and closes the short position when prices converge

3/9 Wanna earn in $ETH instead? That’s where the $ETH vault comes in. It uses a similar arbitrage strategy but with a different direction. Vault sells ETH on Uniswap when it’s higher than Perp and long ETH on Perp when it’s lower. It closes the position when prices converge.

4/9 ♨️1 week of Soakin' The arbitrage txn for both $USDC and $WETH vaults triggered more than 10 times a day which is quite impossible to execute manually and without automation.

5/9 Now let's talk about the performance since the inception. Please note that the vaults' performance may not indicate future results. 📝 the screenshot below taken on April 25th

6/9 Have you checked out the USDC vault performance lately? It's been doing great since its inception on March 17th,2023. The USDC vault made 137 USD cumulative profit in the first week! That's a pretty sweet return (7.12% APR) for a stablecoin.

7/9 The ETH vault generated 0.045 WETH in cumulative profit in the first week. If you're looking for a way to earn passive income from your ETH holdings, you might be wondering if the ETH vault is a good option. Can this yield be an alternative for ETH staking?

8/9 It’s only the first week of performance, so these vaults may still need time to prove themselves. Additionally, the smart contract auditing plan will roll out later. If you want to ape in, make sure you can afford to lose.

9/9 If you already DYOR, you can join Hot Tub by signing up on any vault here vaults.perp.com/ People on the whitelist will be contacted with more info. Good luck! Credits: @InvestgineerX