Earn fees with Delta Neutral LP

Provide liquidity and capture trading fees while hedging price exposure. Fully automated, open-source, and hands-free.

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Market Neutral

Hedges price exposure so you earn fees regardless of market direction.

Automated Hedging

Continuously rebalances your position and manages risk automatically.

Risk-Adjusted Returns

Optimizes for consistent fee income while minimizing downside exposure.

How Delta Neutral Works

The strategy combines two positions to isolate trading fee income from price movements.

Provide Liquidity

Place limit orders on both sides of the order book to earn fees from every filled trade.

Hedge

Offset Exposure

Automatically take the opposite position to neutralize price risk from filled orders.

Result: Pure Fee Income

Price goes up or down — your P&L stays flat. You earn the rebate and spread.

Getting Started

Clone the Script

Clone the Delta Neutral strategy from the LP Toolkit on GitHub.

Configure

Set your market, amounts, and parameters in the config file.

Run & Earn

Run the script locally or on a server. It handles everything automatically.

Quick Start

Get up and running in under a minute.

Terminal

# Clone the repository
$ git clone https://github.com/luarex-dex/lp-toolkit.git
$ cd lp-toolkit/delta-neutral

# Install dependencies
$ npm install

# Configure your settings
$ cp .env.example .env

# Start earning
$ npm start

Requirements

What you need before getting started.

Funded LuaRex Account

Deposit funds into your vault to use as liquidity and margin for hedging.

Funded Lighter Account

Connect your wallet and deposit funds into your Lighter account for hedging.

Server or Local Machine

Run the script on any machine with Node.js. A VPS is recommended for 24/7 uptime.

Basic Configuration

Choose your market pair, set position sizes, and configure rebalancing thresholds.

Risks & Considerations

Understand the trade-offs before deploying capital.

Funding Rates

The hedge position incurs periodic funding payments. In sustained bull markets, funding rates can reduce or exceed fee income.

Execution Slippage

During volatile markets, rebalancing trades may execute at slightly worse prices than expected.

Smart Contract Risk

Funds are held in on-chain contracts. The smart contracts are thoroughly tested but not yet formally audited.

Gas Costs

Every order placement and rebalance costs gas. In low-volume markets, gas fees can exceed the trading fees earned, making the strategy unprofitable.

Frequently Asked Questions

What is the Delta Neutral strategy?
Why does it need a Lighter account?
What are the risks?
How much capital do I need?
Is the script safe? Does it have access to my funds?
Can I run this on multiple markets?