Welcome back to The Gwart Show! Today, Santisa @Tiza4ThePeople from Lucidity joins us to discuss market neutral strategies in DeFi. He breaks down how his fund extracts alpha from stablecoin pairs and incentive programs while maintaining a risk-neutral position. We dive into the sophistication behind monitoring protocols, identifying opportunities through on-chain analysis, and why DeFi tokens rarely represent true equity value. Santisa explains why his fund immediately dumps governance tokens, how they achieved double digit APY with "negligible risk," and why Bitcoin remains his primary conviction despite years in the DeFi ecosystem.
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- Fund achieved 21.3% APY with "negligible risk"
- Stablecoin strategies focus on risk-adjusted returns
- DeFi getting safer but smart contract risks remain
- Massive accounts ($40-50M) farming UniChain
- Athena paying up to 39-40% yields initially
- Most DeFi tokens lack fundamental value connection
02:22 What's a market neutral strategy?
03:50 Can a pleb trade market neutral?
08:10 Structure risk strategies
15:15 Market maturity & deal killers
19:10 Covering hacking losses
23:18 USDC pairs & incentives
24:40 Are you long ANY asset?
25:46 Bearish DeFi tokens
27:24 Any hope for DeFi tokens?
31:14 It's a Bitcoin market, hop on
33:51 Maker DAO buy back model
36:46 Athena is NOT a stablecoin
41:06 Athena token losing value
42:49 Token vs VC money burn
45:16 What is actually exciting
48:48 Future of Lucidity?
50:40 Identifying opportunities
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