The DMM & benefits
How it works
Stream offers exposure to market making opportunities and delta neutral
strategies via decentralized strategies. In exchange for using this
software, users may pay up to 10% in performance fees and Stream may
keep more if it outperforms predicted APY.
These strategies focus primarily on DEX and DeFi only trades. However in the event of reaching over capacity, Stream reserves the right to work with third parties such as major market makers to earn yield for users. If these positions are entered into there will be an announcement and it will be visible in the transparency dashboard.
Our Delta Neutral strategies are effectively market making perpetual products. This allows us to earn returns in two primary ways: arbitraging the funding rate and cost of capital difference, and also the maker fee we receive for taking the other side of perpetual trades.
This system allows us to earn a high return for our users, which we can structure in turns of USDC and other assets. With other assets strategy assets are used as collateral to borrow cash which is deposited into the DMM, which is then used to earn interest which is DCA’d back into the asset of choice, allowing for yield to be earned in-kind.
We plan to leverage this marketing making product to create our own liquidity venue and exchange, which will be more capital efficient, have deeper liquidity, and better funding rates, creating a net positive platform for lenders, market makers and users.
Where does the Yield Come from?
The yield comes from arbitraging the rate difference between the cost to go long on spot (lending protocols) and how much you are paid to go short on derivatives (perpetuals protocols)
Can I deposit into Stream?
As long as you are a non-US, UK, etc you can deposit into Stream
Can DAOs deposit into Stream?
DAOs not based in jurisdictions Stream prohibits can freely use our solutions