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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Notes:

- 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

Timestamps:

00:00 Start

00:28 Santisa's story

01:48 Lucidity

02:22 What's a market neutral strategy?

03:50 Can a pleb trade market neutral?

06:33 Long or short ETH?

08:10 Structure risk strategies

10:22 Unichain

12:46 Farm & dump

12:57 Farming in size

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

39:20 Athena farming

41:06 Athena token losing value

42:49 Token vs VC money burn

45:16 What is actually exciting

47:17 SOL

48:48 Future of Lucidity?

50:40 Identifying opportunities

52:21 Outperforming BTC

56:14 Is crypto VS over?

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Market neutral trading with Santisa