πΈNT Earn
About
NT Earn is Neutral Trade's USDC lending aggregator powered by Neutral Strategy Vaults. It automatically distributes funds across leading Solana lending pools to diversify counterparty risk and optimize risk-adjusted returns.
Deposit USDC β Earn competitive passive returns
Strategy Design
Upon depositing into NT Earn, your USDC is automatically allocated across leading DeFi lending markets on Solana, including:
Kamino (Our Max Yield vault that allocates to multiple Kamino lending markets)
Drift
Jup Lend
What Makes NT Earn Different
Rather than chasing yield alone, NT Earn evaluates multiple factors per lending market:
Utilization ratios and borrowing demand
Supply and borrow caps
Pool size and depth
Supply-demand oscillations
Average daily volume and volatility
Capital flows to pools with active borrowing demand, ensuring efficient deployment and optimized risk-adjusted returns.
Risk Management Framework
Neutral Trade operates an automated yield-optimization system that allocates stablecoin capital across DeFi lending protocols on Solana. This framework governs capital allocation, protocol selection, liquidity management, and automated exit strategies.
Core Products:
NT Earn: Multi-protocol yield aggregator distributing capital across Jupiter Lend, the Kamino USDC Max Yield vault, and Drift Protocol
Kamino USDC Max Yield Vault: Curated vault allocating USDC across selected Kamino Finance lending markets
Philosophy: Capital preservation first, risk-adjusted return optimization secondβachieved through diversification, continuous monitoring, and algorithmic risk response.
Protocol Allocation Framework
Multi-Protocol Strategy
Kamino Finance
Primary allocation: highest yield potential with sophisticated risk controls. Largest Solana lending protocol with isolated pools. Stats: https://risk.kamino.finance/Market_Overview
Primary Allocation
Drift Protocol
Diversification: unique demand from perpetual traders, hybrid derivatives DEX with integrated lending; cross-margined risk engine; insurance fund protection. Stats: https://metrics.drift.trade/d/HzSoFLOVz/deposits-and-borrows?orgId=1&from=now-7d&to=now&timezone=utc&var-SpotMarket=USDC&var-branch=&refresh=30s
Diversification
Jupiter Lend
Part of Jupiter ecosystem, powered by Fluid with unified pools. Pools are not strongly isolated per market. Stats:(https://jup.ag/lend/statistics/liquidity/EPjFWdd5AufqSSqeM2qN1xzybapC8G4wEGGkZwyTDt1v)
Secondary Allocation
Allocations exceed 100% intentionally; the system dynamically fills available capacity based on APY ranking while respecting individual caps.
Demand-Driven Capital Deployment
Our system actively monitors borrowing demand across lending pools and deploys capital where demand is strongest. This approach ensures:
Yield Optimization: Capital flows to pools with active borrowing, maximizing utilization-adjusted returns.
Market Efficiency: Supply meets demand rather than sitting idle in low-activity pools.
Dynamic Rebalancing: Continuous monitoring identifies shifts in borrowing patterns across protocols and markets.
Key demand indicators monitored:
Current and historical utilization rates
Borrowing growth trends
Supply-demand imbalances
Interest rate curve positioning
Kamino Market Selection
Collateral Quality Assessment
Asset Risk Scoring evaluates:
Issuer Risk: Control over token issuance/redemption, regulatory framework, governance processes.
Credit Risk: Probability of value loss, underlying volatility, reserve shortfall risk, liquidation bad debt potential.
Operational Risk: Protocol longevity, TVL resilience, security audit history, transparency metrics.
Additional Criteria:
Conservative LTV ratios providing buffer against liquidation cascades.
Risk-adjusted borrow factors accounting for debt asset volatility.
Transparent risk dashboard provided by Kamino. οΌhttps://risk.kamino.finance/Market_OverviewοΌ
Transparent risk dashboard provided by Allez Labs. (https://allez.xyz/kamino/risk)
Market Structure Analysis
Market Size & Depth
Sufficient liquidity for position management
Borrower Concentration
Distribution analysis to identify large single-borrower risks
Borrowing Demand
Active borrowing indicates healthy yield generation
Lender Concentration
Withdrawal cascade risk assessment
Liquidator Activity
Efficient bad debt prevention mechanisms
Oracle Quality
Price feed reliability and manipulation resistance
Liquidity Risk Management
Utilization Rate
The fundamental liquidity risk metric:
Utilization Rate = Total Borrowed / Total Supplied
High utilization creates risk by reducing available reserves for withdrawals, potentially triggering panic and cascade effects.
Automated Exit Strategy
Tiered Response Mechanism
Rather than full withdrawals at threshold breach, we implement graduated exits, minimizing market impact:
Light
Partial position reduction
Medium
Increased exit ratio
Panic
100% immediate exit
Entry Controls
Hard Block: Utilization exceeds exit threshold β deposits completely blocked
Soft Allow: Below threshold β deposits permitted subject to allocation caps and yield optimization
Capital Allocation Logic
Borrowing Demand and APY-Prioritized Investment
Rank protocols by current APY (highest first)
Evaluate entry blocking rules
Calculate available capacity
Simulate market impact: Model post-deposit APY based on borrowing demand and interest rate curves to ensure capital deployment won't significantly dilute yields
Allocate to the highest-APY protocol until the gap is filled (subject to market impact thresholds)
Flow remaining capital to the next highest-APY protocol
Our internal market impact simulation ensures we deploy capital only where borrowing demand can absorb it without killing APYs.
Borrowing Demand and APY-Reverse Withdrawal
For redemptions or stress exits:
Rank protocols by APY (lowest first)
Withdraw from lowest-APY positions first
Preserves highest-yield allocations
Monitoring
Exit Monitoring
Very frequent
Check utilization against thresholds; execute tiered exits
Reallocation
Frequent
Optimize allocation based on current APY and demand
Balance Reporting
Very frequent
Log balances and allocation percentages
DeFi Risk Factors
Smart Contract Risk
Undiscovered vulnerabilities may exist despite audits.
Mitigation: Diversification across audited protocols with established track records; allocation caps limit single-protocol exposure.
Oracle Risk
Price oracle manipulation could cause improper liquidations or bad debt.
Mitigation: Protocol selection favoring multiple oracle sources; focus on highly liquid USDC markets.
Governance
Parameter Adjustments
Risk parameters may be adjusted based on:
Changes in protocol risk profiles or market conditions
New protocol risk assessment information
Historical performance analysis
Protocol additions or removals
Redemption Period & Fees
There are no fees for this product.
To optimize liquidity and returns, deposits come within 1 hour redemption period.
Deposit Here
Launch date - 4th August 2025
Last updated