☀️SOL Basis

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The SOL Basis strategy represents an approach to delta-neutral trading, combining two distinct yield sources in a single vault. Using an LST as the spot asset, the strategy simultaneously captures both perpetual funding rates and staking rewards. The vault dynamically adjusts leverage up to 2x when market conditions create favorable spreads between borrowing costs and funding rates. Starting with dSOL, the strategy maintains the flexibility to optimize across various SOL LSTs, always prioritizing assets with deep liquidity for efficient execution.

Vault users should note that Gauntlet may adjust the strategy based on the funding rate environment and borrow fees. If there is a prolonged period of negative funding, the strategy may close hedges and swap deposit assets to USDC. Gauntlet might also use SOL spot shorts instead to achieve delta neutrality and earn LST yield.