Today, we are excited to announce that we have partnered with Limitless and are now working on developing Orange’s LPDfi vault on them. We will be launching the vault in the following months.

This strategic partnership aims to simplify and enhance the LP experience on top of Limitless.

TL;DR of the collaboration

• Orange Finance offers a delta-hedging liquidity manager vault on top of Limitless.

• The Limitless team supports Orange teams’ development and integration with them.

LPDfi vault on Limitless

Orange Finance is a protocol specialized in earning real yields from AMMs on Arbitrum. Currently, we deliver stable real yields to users as ALM by managing liquidity and hedging/adjusting market risks.

On top of the Limitless, we will provide an LPDfi Vault which earns both trading fees and loan fees with an optimized price range, implementing a delta-hedging strategy to mitigate losses from market volatility.

ALM Integration simplifies your LP experience

By integrating with the Orange Finance vault, users on Limitless can earn passive yields without dealing with complexities like setting price ranges, rebalancing, or implementing LP hedging strategies.

The overview of the LPDfi vault on Limitless

• Pool: ETH-USDC pool on Limitless

• Chain: Arbitrum

• Deposit Asset: USDC

• Eligibility: Open to anyone

• Strategy:

  The vault implements a delta-neutral strategy by using Aave. A portion of deposited USDC is collateralized on Aave, and ETH is borrowed from them. As the ETH position is borrowed, even if the ETH price decreases, the vault can hedge a portion of losses compared to an unhedged position.

• Price range:

  The price range is set by simulating volatility with statistical and financial models and parameters.

Why is the LPDfi vault on Limitless?

On normal v3 AMMs, only a portion of the capital is active in generating trading fees, with the rest sitting idle. With Limitless, liquidity providers can earn higher returns by lending out the capital not engaged in trading activities.

We believe Limitless enhances the profitability of liquidity provisioning.

About Limitless

Limitless is a liquidation-free and permissionless lending facility and margin trading DEX built on top of concentrated liquidity technology.

About Orange Finance

Orange Finance offers advanced liquidity management on Arbitrum, specifically designed for concentrated liquidity DEXes. Through statistical modeling and delta hedging, we enhance v3 AMM capital efficiency against asset price fluctuations.