What is RoboVault?

In this Twitter space, [Diamond Rock]( Co-Founder of [BENQI]( is joined by [safetybot]( Co-Founder of [RoboVault]( to discuss delta neutral strategies, being a non-token protocol, and more.

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Read our notes below to learn more

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**What is RoboVault**

* Doing pseudo delta neutral strategies or single asset strategies where users can deposit stablecoins and yield on that.
* Lending, borrowing, creating an LP position and managing IL for the users.
* Migrated over to $AVAX in July.

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**Safetybot’s background**

* Building trading bots a year ago and playing around in DeFi.
* Had some software engineering experience.

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**What is Delta Neutral**

* Delta Neutral means you are neutral to changes in the price of the market.

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**Decision to move to $AVAX**

* One of the biggest issues in [Phantom]( is that there’s a lot of volatility in gas prices.
* There were a lot of headaches about things not working as well as they could.
* Had some data comparing gas prices and the reliability of [Avalanche]( compared to Phantom.

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**Thoughts on structure and technical design**

* More focused on auto compounding strategies, folding strategies which gives a good niche in the market.
* The project doesn’t have a token which lets the team focus more on the product.

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**Impact of being a non-token protocol**

* RoboVault has a small team and one of the biggest questions was, is the token going to be a distraction and take away the effort and resources from pushing the product.
* On the economic side, having a token attracts capital that disappears after a few weeks then dumping the token.
* In terms of fundraising, they have equity raises.

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**Thoughts on competition**

* It’s a bit harder to get attention.
* There’s a solid differentiation in terms of a product without a token.

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**Experience of being a founder**

* One of the early team members of a startup that went from 5 people to 30 people.
* A founder is a different ball game.
* One of the big lessons from the startup experience is build fast, fail fast.

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**Thoughts on the future state of crypto**

* The next 12 months could be a pretty rough and boring time.

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**Views on regulation**

* There could potentially be some harmful regulations.
* They have one law firm they’re working with that’s helping them navigate their entity setup and providing them information.

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**Advice for people who wants to get a job in Web3**

* Get started in whatever way you can.

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**Relationship with auditors**

* Not great.
* The biggest concern is more like the economic tax and manipulation.

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**Potential partners**

* New AMM primitives are interesting.
* Lending and borrowing models.

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**Q&A**

***Q: Are there other DEXs that you’ll be working with in the future?***

* We’ve got live running tests on [Uniswap]( V3.
* We’re working on a [GMX]( strategy at the moment.

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***Q: Do you have plans for going cross-chain?***

* We will focus more on being mature and on Avalanche for now.

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***Q: What is the plan for the economic future of the platform?***

* We have done some research into tokens and it’s not off the table but it’s something we’ll revisit probably Q1 next year.

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***Q: Is there any alpha we should look forward to?***

* The most interesting things would be Trade Joe liquidity book delta neutral strategies.
* GMX and GLP strategy.
* More vaults and a $BTC vault.

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***Q: What is the big barrier to mainstream adoption?***

* In the long term, we want a disengaged audience because DeFi is working so well.
* Everyone’s a bit disengaged due to how things are going.
* There’s an expectation that everything should just work.

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***Q: What are the risks with RoboVault and what could go wrong?***

* We actively rebalance the positions within a 12 hour period trading phase.
* We earn from providing liquidity.
* In terms of risks, automation failing. We’ve put a lot of work on integrating with Gelato and Chain Link automation as well.

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