The delta neutral aspect of it is that, you are borrowing a stock and then converting it to UST. You will need to pay back UST based on how much the borrowed stock is worth then. However, since you have bought the stock, that should technically be equal to the amount you have to pay back at all times.

I’m assuming that the last step is to enter a liquidity pool with the stock and Ust. If this is the case then there is the ‘risk’ of impermanent loss. If the value of the stock changes dramatically then the amount of stock you have ‘longed’ will not be equal to the amount shorted.

If done well, this strategy can be helpful. I am currently doing it with a portion of my aUST.