Maximizing Stable Real Yield, Minimizing Market Volatility Risks 🎱
Introducing Solv Protocol’s KTX Delta-Neutral Pool
Introducing Solv Protocol
We are pleased to announce an exciting new partnership with Solv Protocol V3, a prominent decentralized, non-custodial platform for active asset management with a focus on constructing LP-centric funds to create diverse yield opportunities.
Solv is an ideal strategic partner for KTX.Finance due to its demonstrated ability in delivering sophisticated yield strategies to a wide audience. Furthermore, Solv offers various options catering to both retail and institutional investors, including the 360-degree risk-controlled “Multi-Party Controlled Vault” and the tokenized “Real World Assets (RWA) Fund.” The inclusion of long-term partners such as Time Research and BlockIn Capital further solidifies Solv’s position as a yield optimizer executing sophisticated strategies.
As leading DeFi protocols on Mantle, both KTX.Finance and Solv Protocol are excited to trailblaze the continuous progress of its already thriving DeFi ecosystem.
Downsides of Yield Farming during Market Volatility
By providing liquidity on KTX, LPs essentially own KLP — a basket of assets including $BTC, $ETH, and $MNT. The yields come from two sources:
- Trading fees generated from KTX daily activities
- PnL from counterparties — the traders
However, KLP holders take on price risks of the underlying assets in the pool. They may also suffer losses during extreme single-directional markets, when traders continually profit.
For instance, $KLP holders on Mantle are vulnerable to the underlying volatility of $BTC, $ETH and $MNT prices in the KLP pool, which presents a significant downside risk if the market is skewed downwards.
Presenting Solv Protocol’s KTX Delta-Neutral Pool
As the first open-ended fund between KTX.Finance and Solv, the KTX Delta Neutral Strategy Pool will be launched on 15 Nov and offers flexible access to institutional-grade DeFi yields. It provides liquidity on KTX.Finance and hedges asset price risk on Bybit, transforming KLP into a low-risk, high-yield financial instrument.
On top of the delta-neutral real yield paid in $ETH for fund participants, KTX.Finance and Solv Protocol will also be offering additional incentives in terms of vested $KTC and $fvSOLV. At inception, the fund will only be accessible to holders of Mantle’s “Citizen of Mantle” NFT Collection, providing the access to participate in the fund.
Estimating your Rewards
As a participant of the fund, users would be able to enjoy a plethora of staking rewards, independent of market volatility risk. Here’s a detailed breakdown of the fund’s staking yields:
a. $ETH APR: ~10.1% (KLP yield from trading fees accrued)
b. $KTC APR: ~16.7% (Additional incentives from KTX.Finance)
c. $fvSOLV APR: ~23.1% (Additional incentives from Solv Protocol)
Total APR: ~49.9%
Note: Stated APRs above are updated as of 13 Nov 2023, and may slightly fluctuate.
$KTC & $fvSOLV Vesting Schedule
To mitigate a scenario of a sharp selloff, the full amount of vested $KTC and $fvSOLV Vesting Voucher can be linearly unlocked over a 12 month period. For instance, if a liquidity provider earned himself $1,200 worth of vested $KTC / $SOLV Vesting Voucher, he would be able to unlock $1,200 / 12 = $100 on a monthly basis.
How to Participate
The KTX Fund is an open-ended fund that exclusively caters to whitelisted users during its Private Sale phase and transitions to a public fund thereafter.
The Private Sale phase spans the first two weeks following the fund’s launch, during which access will be restricted to whitelisted users. This limited access provides every investor with the opportunity to secure higher $KTC and $SOLV incentives. Subsequently, the fund will be open to all users, enabling broader participation.
To get whitelisted, follow these steps:
- First, ensure that you hold the Citizens of Mantle (CoM) NFT.
- Second, submit your registration through this form. We will add your address to the whitelist within 24 hours.
After the first two weeks, the fund will be open to all users, enabling broader participation!
