Leveraged Looping Strategy
With our looping mechanism, you can leverage your GMD Delta-Neutral Vault mechanisms with very minimal risks, and get 195% of the $GLP yield.
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 |
|---|---|---|
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 |
The total borrowed amounts will be as follow:
Total Collateral | $4,861.27 |
Total Lent out | $3,889.01 |
Total Lent out / Original Deposit | 3.89 |
The total yield from the original $1000 deposit:
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% |
Conclusion
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
Last updated