Boosting $GLP Yield by 195%

and almost completely risk-free

With our looping mechanism, you can leverage your GMD Delta-Neutral Vault mechanisms with very minimal risks, and get 195% of the $GLP yield. Here is how we enable that:

We will assume we are generating roughly 20% in average annual yield on GMD Delta-Neutral Vaults. The borrowing interest fees will be set at 80% that of the Vault yield.

Lending mechanism details:

You can deposit gmdTOKENS and withdraw 80% of your collateral value. For example:

• If you deposit 1,000 gmdUSDC at $1 per gmdUSDC, you can borrow, at most, 800 USDC.

• You can then stake this 800 USDC into our delta-neutral vault to get 800 gmdUSDC tokens, which you can then deposit into the lending mechanism to get 640 USDC

• And you can keep doing that until you cannot anymore.

Using that looping mechanism, and 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