Margined seek to extend their existing vault framework to support deltaneutral LPing. This would enable users to deposit into a vault which LPs into a specific pool but simultaneously creates a hedge for the value of the LP position. This would lower the risk of LPing for users as their exposure to both realised and impermanent loss would be significantly lowered.
A novel vault framework will be released that enables lower risk LPing for Cosmos bluechip tokens. Specifically the initial usecase is designed to be for the Hydro platform. This framework could then be extended to improve liquidity provision for a variety of usecase e.g. Osmosis DEX Neutron DEX and Mars.
In addition to the first order benefits of lowered risks to users this will have a number of second order effects. Firstly it should lead to a reduction in price volatility of key cosmos assets such as ATOM as by lowering the risk of LPing we can assist liquid funds in LPing which will increase the total liquidity in various DEXs/Pools. Reduction in price volatility can improve the adoption an use of assets along with the general narrative. Further for protocols and treasuries being able to LP or simply hold assets in a deltaneutral manner for extended periods of time allows them to derisk their treasury and ensure their ability to make payments e.g. payroll into the future solidifying the viability of projects throughout the ecosystem.
