Perp Leverage Strategy STIP #15
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STIPS/STIP-007.md
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| | ALM/CLM Strategy Extension Feature | Perp Strategy Extension Feature | | ||
| |----------------------------------- |-------------------------------- | | ||
| |Methodology - Flexible leverage is a superset of most of the leverage token methodologies. Supports the fixed ratio (FTX), and Binance methodologies|Methodology - Can use the same methodology as FLI or another by toggling parameters on the smart contract| | ||
| |Rebalance execution - Use TWAP and oracle to limit slippage|Rebalance execution - Similarly, we need TWAP and oracle to limit slippage on rebalances. Need to keep track of what the virtual addresses and spot token addresses are.| |
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Oracle could be tricky since definitionally we would expect the spot price of the Perp to differ from the spot price of the underlying
STIPS/STIP-007.md
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| - Allow keepers to rebalance the perp leverage token via the native exchange | ||
| - No need for an external DEX | ||
| - No need for a viewer contract | ||
| - Use Chainlink oracles to price slippage and determine trade size |
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I think this is biggest open question for me since we expect there to be some delta between spot and perp. How big can we expect that delta to get?
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Well we can parameterize it still. On mainnet we set it to be 2%. Hopefully perps do their job and closely mirror index price
STIPS/STIP-007.md
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| A keeper wants to rebalance the Perp token which last rebalanced a day ago so calls shouldRebalance on the strategy contract directly | ||
| - The keeper calls rebalance on the PerpStrategyExtension | ||
| - The exchange's max trade size is grabbed from storage | ||
| - The current leverage ratio is grabbed from the Perp Module |
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Historically haven't had the module return a leverage ratio, this assumes we have access to an oracle at the protocol level which I think I'd prefer not to make a dependency
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Wouldn't a perp helper return this? Mainly meant the leverage ratio (or account leverage or collateral ratio) would be returned from Perp V2 vs us using oracles to calculate anything
| ### Comparison between the ALM/CLM Leverage Token Extensions and Perpetual Token Extension | ||
| In general, external perpetual protocols simplify the lever and delever flows for rebalances, and many of the previous extension logic can be reused in the perpetuals extension. | ||
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| | ALM/CLM Strategy Extension Feature | Perp Strategy Extension Feature | |
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Can we track what state we usually pull from Compound and AAVE? Would be good to know what we'll need to pull from the PerpModule
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