Leveraged Looping Strategy
Last updated
Last updated
You can deposit gmdTOKENS and withdraw 80% of your collateral value. Knowing that fact, you can enable the looping mechanism by following these steps:
Deposit into GMD Delta-Neutral Vaults, receive receipt gmdTOKENS
Deposit gmdTOKENS into money-market
Borrow Corresponding Assets
Deposit Corresponding Assets into Delta-Neutral Vaults
Repeat until you cannot anymore
Taking into account the $GLP's 0.5% converting fees, the total looping amount will look as follow if we start with a $1000 initial deposit:
| No. Loop | Collateral | Borrow |
|---|---|---|
By looping your original position 20 times, you can borrow almost 4 times your initial deposit and almost DOUBLE your original GLP Yield.
As such, our products enable users to safely stake USDC while getting 195% of the usual stable $GLP yield, while also only being exposed to minimal risks
0
$1,000
$800
1
$796
$637
2
$634
$507
3
$504
$403
4
$401
$321
5
$320
$256
6
$254
$204
7
$202
$162
8
$161
$129
9
$128
$103
10
$102
$82
11
$81
$65
12
$65
$52
13
$52
$41
14
$41
$33
15
$33
$26
16
$26
$21
17
$21
$17
18
$16
$13
19
$13
$10
20
$10
$8
Total Collateral
$4,861.27
Total Lent out
$3,889.01
Total Lent out / Original Deposit
3.89
Original yield from initial collateral
$198.99
Original APY
19.90%
Max net yield after loops
$387.88
Max Boosted APY
38.79%
% of original yield
194.93%
% Increase
94.93%