🎯Our approach to strategies

Why multiple strategies?

Different users approach DeFi opportunities with varying levels of expertise and preferences for control. The individual basis vaults - SOL and BTC, together with hJLP vaults, form our foundational layer of vault curation, but with an important distinction: digital asset allocation is entirely in the hands of vault users. Some users have strong views on specific markets or a deep understanding of particular inefficiencies. For them, individual strategies are powerful tools.

Some users have strong views on specific markets or a deep understanding of particular inefficiencies. Consider a vault user who closely follows SOL staking dynamics and funding rate patterns—they might choose to deploy more robustly toward the SOL basis strategy when they spot favorable LST ratios or funding rate opportunities. Another vault user, more confident in BTC as an asset class and a possible positive funding environment for this asset, could focus their allocation on the BTC basis strategy during periods of high basis spreads, leveraging their understanding of derivative market dynamics.

For vault users who prefer automated management, the Gauntlet Basis Alpha (GBA) strategy implements a portfolio view across all basis trades. Starting with fixed allocations to hJLP, SOL LST, and BTC Basis Trades, it will continuously and autonomously rebalance based on real-time market conditions, considering funding rates, liquidity conditions, trading volumes, and historical performance patterns. This removes the need for active management while maintaining sophisticated optimization.

The Beta + GBA Overlay strategies (Gauntlet Plus) solve a different challenge altogether - they're designed for vault users who want to maintain their market exposure while still capturing basis yields. By using their deposited SOL or BTC as collateral to borrow USDC for GBA deployment, vault users can position themselves to earn incremental yield for the digital assets in their vaults.

In summary, each strategy serves a distinct purpose in our framework:

• Individual hJLP and basis vaults for those who want direct control over specific opportunities

• GBA for those seeking more active vault asset deployments

• Overlay strategies (Gauntlet Plus) for those willing to combine market exposure with yield

Together, they create a comprehensive approach to yield generation that adapts to different vault user preferences while maintaining consistent risk management standards.