When we first launched Strategies last year, one thing became instantly clear: users want to deploy sophisticated yield strategies with one click. The initial focus on sustainable rate, carry, and basis trades proved that there’s massive demand for simplified access to complex DeFi opportunities.
As Project 0 expands to more venues, the opportunity set grows exponentially. That’s why we’re shipping Strategies V2 with powerful new tooling that gives you more ways to optimize your positions and capital efficiency.
What’s New in Strategies V2
Leveraged Directional Trades
Strategies V2 now supports leveraged directional positions, enabling you to long or short position with leverage, all while capturing its base yield, such as staking rewards through loop mechanism:
- For a bullish “long” play, you supply the asset you want exposure to, earn its underlying yield, and borrow stablecoins against it, then recycle the loan to create a leverage loop and boost your position.
- For a bearish “short,” it’s the opposite: You supply a stablecoin, borrow the asset instead, and flip the exposure.
Your total return equals the underlying asset yield, plus or minus price performance, minus your borrow rate. In favorable market conditions, the yield can surpass borrowing costs, meaning you effectively get paid to maintain leveraged exposure.
Unified PnL Tracking
Built on new data pipelines to our integrated venues, the PnL system captures every component of your returns. It tracks native yield and emissions from platforms like Kamino, combines that with your open positions on Project 0, and factors in debt costs if you’re running leveraged strategies.
The system also captures native asset appreciation. For example, JLP is an asset that typically increases in value versus USDC in many market conditions, which is entirely separate from the lending yield earned on top of it. Other tools miss this crucial component of returns.
Before unified PnL, traders had to manually aggregate their returns across multiple platforms. They’d calculate what they earned on Kamino, what they earned on Project 0, account for different position sizes on each venue, adjust for borrowing costs, and track all these different variables with spreadsheets and complex math.
Now, Strategies V2 gives you a single source of truth. Whether your positions are scattered across Kamino, Project 0, or other integrated venues, you get one accurate PnL number that accounts for every factor affecting your returns.
Smart Account Management
Smart account management solves a fundamental constraint in DeFi position management. Previously, if you created a leveraged loop using Asset A as collateral, you couldn’t open a separate loop borrowing Asset A on the same account. The platform would simply prompt you to reduce your collateral. This limitation forced users to choose between strategies or manually manage multiple disconnected accounts.
Strategies V2 automatically handles this complexity. When you want to execute a strategy that conflicts with your existing positions, the system intelligently creates a new isolated account. Each strategy runs in its own loop, separate from other positions, with clear visibility into leverage levels and liquidation prices.
You maintain full control with the ability to view all your positions, adjust leverage on individual loops, or unwind specific strategies without affecting others.
What’s Next in Strategies V2
Debt and Collateral Swaps
One of the biggest pain points in DeFi has been optimizing positions after they’re opened. Previously, improving your cost of capital or adjusting exposure meant unwinding your entire position and rebuilding from scratch.
In the coming weeks Strategies V2 will introduce debt swap and collateral swap, letting you modify positions mid-trade without disrupting your strategy.
- Debt Swap allows you to exchange your borrowed asset for a more optimal one. For example, if you’re borrowing a stablecoin at a 5% rate and discover another stablecoin available at 4%, you can swap your debt mid-position to immediately increase your profit margin. This is especially powerful for leveraged strategies where borrowing costs directly impact your returns.
- Collateral Swap works similarly but for your supplied assets. You can exchange your existing collateral for a higher-yielding asset or one with better leverage characteristics, all without closing your position.
- The system will also handle asset acquisition automatically. If you identify a profitable strategy involving two assets you don’t currently hold, Strategies V2 can auto-swap your existing assets into the desired pair and open the position seamlessly.
Both features enable continuous optimization as market conditions evolve, turning static positions into dynamic, adaptable strategies.
Just the Beginning
Strategies V2 represents a significant leap forward in capital efficiency and flexibility, but this is just the foundation. As Project 0 integrates additional derivatives venues, Strategies will unlock even more sophisticated yield generation opportunities.
The vision remains the same: transform DeFi from a fragmented landscape requiring constant manual optimization into an intelligent system that does the heavy lifting for you.
Visit the Strategies page today to experience the next generation of DeFi yield optimization.