Ghast Protocol on Arbitrum
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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