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Boosting $GLP Yield by 195%
and almost completely risk-free
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.
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:
- 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