Meridian Strategies: a simulation-first engine for self-repaying loans and delta-neutral positions

[collinsezedike]

Meridian's core job is routing stablecoin deposits to whichever protocol is paying more. Alongside that, we have been building a second thing, and it is far enough along to talk about.

What it is

packages/strategies is a strategy engine and backtesting harness. It does not touch the live vault and it is not wired to mainnet in any way. Its purpose is to let a financial idea be measured against simulated markets before anyone considers putting money behind it.

What is already there:

• Fixed-point money math, so no floating point value ever touches a balance.
• A simulation clock, a portfolio state model, and a strategy interface that every strategy implements.
• A backtest runner with a fixed per-tick order, so results are comparable across strategies.
• A scenario schema. A run is defined by one scenario object holding the window, the assets, the price and rate sources, the starting capital, the strategy and its parameters, and a seed. That single object is what makes two results worth comparing.
• Market primitives: price feeds, a funding-rate model, fee and slippage models, and a liquidation engine.
• Risk metrics and a run report format that can be serialized and resumed from.

The two strategy families

Self-repaying loans. A position's yield pays down its own debt, and a health-factor monitor watches the position and de-leverages before it reaches liquidation.

Delta-neutral positions. A long spot leg held against an equal and opposite hedge, so the position carries almost no net price exposure and earns the spread between the legs instead of a price move. The hedge venue is modeled inside the harness, because there is no live venue to point at.

The boundary is enforced, not promised

Nothing in the engine can sign or submit a transaction. Every action passes through an isolation guard that refuses to run unless an explicit live-execution environment flag is present, and that flag is off by default. There is no order router, no keeper, and no key. When a strategy asks to do something, the harness makes it produce a simulated result instead.

Where to look

The delta-neutral design is documented on the docs site under Strategies. The engine lives in packages/strategies.

Getting involved

The work is open and the issues are scoped. If you want to take one, read CONTRIBUTING.md and comment on the issue so it can be assigned to you.

Back to building.
— Collins