Earn Up to 31% APR with Stablecoins on GMX on Arbitrum
Before we get started, this is not a recommendation or endorsement to buy any token mentioned.
Last week, we covered the rise of “real yield” in DeFi. The flagship protocol for this trend among builders is the decentralized spot and perpetuals exchange GMX, live on both the Ethereum L2 Arbitrum as well as the L1 Avalanche. Trading on GMX is supported by a multi-asset pool that earns liquidity providers fees from market making, swap fees, and leverage trading. The pricing on GMX exchange is supported by Chainlink oracles and an aggregate of prices from leading volume exchanges. Ownership of this multi-asset pool is represented by buying the token GLP. GMX uses a two-token system whereby GLP holders earn 70% of trading fees in WETH + esGMX rewards and GMX stakers earn 30% of trading fees denominated in WETH + esGMX (vesting linearly, every second, over 1 year). See below how much GMX and GLP holders earned over the past week.
LPs can mint/buy GLP tokens, which represent shares in the GLP pool, by depositing any of the index assets below. They can redeem for any index asset by burning their GLP holdings as well. The fees associated with buying GLP vary depending on which of the GLP index assets are currently underweight or overweight. If an index asset is underweight (ie ETH, WBTC, UNI, USDT), one is incentivized to mint the GLP by depositing this asset for lower fees vs if an index asset is overweight in the pool (ie LINK, USDC, DAI, FRAX), then one is disincentivized to mint GLP with these assets due to higher fees.
Related Articles
Earning Double-Digit Yield with Base’s New Flatcoin UNIT by Flat Money
Here’s how I can earn an estimated 27% APY minting and holding UNIT.
Solv Airdrop Strategy: Earn Bitcoin Yield with solvBTC
Today, I’ll show how I can deposit into solvBTC and start earning XP towards a future airdrop + 8-12% APY!
How to Farm Ethena’s ENA on Mantle Rewards Station
Today, I’ll show how I can passively farm mShards to later swap for ENA rewards for 17 more days until the campaign ends on April 26th, 2024.
The Lido of Stacks: Liquid Stacking with stSTX by Stacking DAO
Today, I’ll show how I can stack some STX with stSTX by Stacking DAO!
LRT Looping Strategy: Instadapp’s New Fluid Vaults for Levering Up on EigenLayer’s Launch
Today, I’ll show how I can use Fluid to lever up on weETH exposure and hence increase my ether.fi and EigenLayer points earned while collecting 3.3% APR in eETH staking yield.
ZeroLend Multi-Airdrop Strategy for EigenLayer, zkSync, Blast, and Linea
Today, I’ll show how I can act quickly to capitalize on the ZERO airdrop in addition to airdrops tied to EigenLayer, zkSync, Blast, and/or Linea.
New Omnipool Strategies: How to Earn Maximum Passive LP Yields with Opal
Today, I’ll show I can begin earning the comparably higher yields (up to 33% APR) with Opal passive omnipool strategies.
Frax L2 Airdrop Strategy: How to Earn FXTL Points
Today, I’ll show I can stake FXS to qualify for the March 6th snapshot, or at minimum begin earning FXTL in future weekly epochs beginning March 13th.
Whales Market OTC DEX: Trade Airdrop Allocations, Points, and Tokens
Today, I’ll cover how I might opt to buy points on Whales Market for an unlaunched token such as ether.fi’s.
Ethena Airdrop Strategy: DeFi’s Next Big Stablecoin with Double-Digit Yield
This week, we cover the mainnet launch of Ethena–the new protocol powering a delta-neutral synthetic dollar USDe, backed by ETH staking yield and automated, programmatic delta-neutral hedges.
Responses