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Dynamic Muller 🌴

Dynamic Muller 🌴
@DynamicMuller

Feb 27
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The DeFi market has seen tremendous growth in recent years, providing users with opportunities to earn higher returns. However, it still faces several challenges such as price volatility, liquidity issues & high risk exposure. A thread on how @GMD Protocol solves all these 🧡

In this thread, we'll be covering: πŸ”ΈWhat GMD protocol is πŸ”ΈProducts that make it unique from other DeFi projects πŸ”ΈReal yield revenue sources πŸ”ΈAvax expansion πŸ”Έ Tokenomics πŸ”Έ Partnership πŸ”Έ Roadmap
πŸ”Ά What is GMD Protocol? Founded by @Saul Goodman, GMD Protocol is a yield optimizing and aggregating platform built on top of existing applications such as GMX and GMD’s reserve token on Arbitrum. It employs delta-neutral or pseudo-delta-neutral strategies to aggregate yields...
What is GMD protocol?
...from an index pool or an LP to its constituent individual assets, eliminating their risks of impermanent loss or exposure to unwanted assets. Doing so earns yields from not only real revenue but also protocol-owned liquidity, which is generated back to the community.
It accrues 70% of the platform fees, and primarily consists of 50% stables, 35% $ETH, 15% $BTC. In other words, GMD protocol is built on top of the GLP+GMX liquidity pools and uses a range of strategies to maximize returns while minimizing risk. Its innovative approach to...
...yield farming, combined with its user-friendly interface and GMD token rewards, make it a compelling option for investors looking to earn high returns in the DeFi market. To understand more about $GMX & $GLP twitter.com/LouisCooper_/s…
Louis Cooper (πŸ’™,🧑) πŸ„

Louis Cooper (πŸ’™,🧑) πŸ„
@LouisCooper_

1/ Narratives are everything in crypto, but how do you capitalize on them? What if you could short/long that narrative: πŸ”Ή With 30x Leverage πŸ”Ή Without owning the token πŸ”Ή Completely decentralized (No KYC) Introducing $GMX & $GLP, the upcoming Perp. DEX 🫐 Let's dive in🧡 πŸ•΅οΈβ€β™‚οΈ
πŸ”Ά PRODUCTS THAT MAKE @GMD Protocol UNIQUE
1️⃣ Pseudo delta neutral vault Talking about Pseudo-Delta-Neutral strategy, by maintaining a neutral delta, which refers to the rate of change in the price of an option compared to the price of the underlying asset, it is designed to...
...achieve a balance between the gains and losses of an investment. But in order to completely understand GMD Protocol's respective Delta-Neutral strategy based on GMX and GLP, one must first fully understand the 3 main risks involved with market volatility and they include:
πŸ”Ή Trader’s profit and losses from GLP pool πŸ”Ή Impermanent loss due to price volatility + assets weight changes πŸ”Ή Volatility from small assets in the pool (Link, Uni) Among these 3 main risks, Risk 1 works in favor of GLP, as traders statistically WILL lose over a long...
...enough period of time. To put this in the context of GMD's Risk Hedging, GLP has almost always outperformed other indexes/LPs during its entire history, with the trading performance fee and the additional revenue from traders' losses. Risks 2 and 3, however, are the most...
...concerning as crypto is a volatile asset class and impermanent loss has always been a risk that liquidity providers, in this case, GMD Delta-Neutral Vaults Stakers, have to take. This brought GMD Protocol to the creation of their Pseudo-Delta-Neutral Strategy with a...
...risk-absorbing reserve - Protocol's GLP RESERVE (THE RESERVE) So this Pseudo-Delta-Neutral is built on top of $GMX & $GLP consist of 3 major key parts, which are: β€’ Delta-Neutral Ratio β€’ Manual Rebalancing of Deposits β€’ Protocol's GLP Reserve (The Reserve)
Check the attached image for the strategy explanation So let's take a look at these 3 major key parts one after the other πŸ”Ή Delta-Neutral Ratio Utilizing Pseudo-Delta-Neutral Ratio means the deposited single-stake assets (USDC, ETH, or BTC) will be allocated and adjusted...
...to the exact same weight as GLP’s composition for USDC, ETH & BTC. These 3 assets (USDC, ETH, & BTC) will be used to mint $GLP & earn yields from $GLP For instance, excluding the value of smaller assets (Link, Uni), GLP consists of about 50% stables, 33% ETH, & 17% BTC.
In that case, a vault of $1,000,000 in asset value will consist precisely of $500,000 USDC, $330,000 worth of ETH, & $170,000 worth of BTC & this would satisfy their pseudo-delta-neutral ratio. πŸ”Ή Manual Rebalancing of Deposits The GMD Protocol team will manually rebalance...
...all deposited assets once every week. which will guarantee that the composition ratio will match the asset composition ratio of GLP perfectly For more info about that, you check this section of their whitepaper: gmd-protocol.gitbook.io/gmd-protocol/g…
πŸ”ΉProtocol's GLP Reserve (The Reserve) They chose to raise funds and establish a reserve known as the Protocol's GLP Reserve (The Reserve) to absorb said risks rather than attempting to completely eliminate the market volatility of impermanent loss caused by price volatility...
...and assets weight changes, which is nearly impossible. The Reserve has the following features and advantages. The Reserve will absorb the risk of Delta-Neutral Vaults underperforming due to impermanent loss by making up for the difference between the value of the...
...Delta-Neutral Vaults' underlying GLP and users' staked assets. The Reserve will always consist of an amount of GLP worth 5-15% of the total TVL of the three Delta-Neutral Vaults (If Vaults TVL is $2,000,000; there will be $200,000 worth of GLP in The Reserve). Its benefit...
...is that funds for The Reserve will be provided 100% by GMD Treasury. The earnings from traders' losses on the $GLP will also go to the Reserve. Statistically, traders will always end up losing money collectively. The Reserve is substantially more likely to profit...
...financially from the volatility based on historical data comparing GLP's performance to Single-Assets. In other words, the Reserve is designed to take on more risks toward the protocol while obtaining more benefits and rewards for their users.
2️⃣ AUTO COMPOUNDING FEATURE With this, all three vaults are going to be auto-compounded & will appreciate in real time. For your stake positions for USDC, ETH & BTC respectively, you will receive gmdUSDC, gmdETH, & gmdBTC as receipt tokens representing your original positions.
GMD tokens appreciate in value at their APY. As an example, if you exchange 100 USDC for 100 gmdUSDC, in a year time, your 100 gmdUSDC will be worth 120 USDC if you are to unstake. Through gmdUSDC-USDC, gmdETH-ETH, gmdBTC-BTC Uniswap V3 liquidity, these tokens can then be...
used to form Uniswap V3 liquidity to allow for instant entering the vaults in the case the vaults are completely filled. For more info about the vaults Capabilities, you can read about that here: gmd-protocol.gitbook.io/gmd-protocol/d…
3️⃣ LIQUIDITY POOLS For a variety of cryptocurrencies, @GMD Protocol offers liquidity pools, enabling users to make money through trading, arbitrage, and by accessing and using the vaults.
4️⃣ BFR USDC VAULT Holders of USDC can earn yield by staking their USDC in the GMD-Buffer vault to generate BLP tokens and pay trading commissions. The weekly fees of @Buffer Finance πŸ™ and traders' PnL determine the Vault APY. The current APY can be found in the images below
5️⃣ STAKING Staking options are also available through GMD, allowing users to earn money by holding GMD tokens and participating in the network's consensus process. This has recently been updated to include the GMD and esGMD v2 staking pools.
6️⃣ GMD BRIDGE Another product of @GMD Protocol is the $GMD bridge $GMD protocol provides a scaling solution to bridge between $GMD on Arbitrum to esGMD on @Avalanche πŸ”Ί, hence increasing ease of use for users and as well leading to more accessibility and Adoption.
You can check it out here: avax.gmdprotocol.com/bridge Now let's take a look at their Real Yield Revenue Sources πŸ”Ά REAL YIELD REVENUE SOURCES First of all, to have a proper understanding of real yield, you can check this out πŸ‘‡ twitter.com/DynamicMuller/…
Dynamic Muller 🌴

Dynamic Muller 🌴
@DynamicMuller

In order to draw investors and generate demand, several crypto project promise absurd yields (interest). Recently, a growing number of people have begun to pay attention to protocols that reward stakeholders based on the revenue made, "REAL YIELD" SO WHAT IS REAL YIELD? 🧡
GMD Protocol earns Real Yield Revenue in ETH from the following sources: β€’ Compounding half of the ETH rewards of GLP from Delta-Neutral Vaults, while the other half will be collected as performance fees/protocol revenue and distributed to $GMD stakers in WETH.
β€’ $GMD earns WETH rewards from the GLP in GMD Reserve β€’ $GMD fees collected through protocol-owned liquidity, which will be converted to WETH and distributed. β€’ $GMD Stakers earn from their protocol-owned liquidity and underlying GLP assets. β€’ $GMD Stakers also earn...
...performance fees from single-staking vaults and all future additional revenue sources as GMD Protocol continues to expand. For the Real-Yield APR Sample Calculation, refer to the attached image
πŸ”Ά AVAX EXPANSION Avalanche, one of the top layer-1 players, has demonstrated over the past year that it can leverage its blockchain technology for cross-chain/side chain applications by partnering and working with major projects like GMX/DFK side-chain. They also have...
...a strong community. As a result, GMD made the decision to tap into $GMX and $GLP on Avax. With this, GMD Protocol stands to earn from the following benefits: β€’ GLP APR on AVAX has been consistently higher than GLP APR on Arbitrum. This simply means higher APR yield...
...for their Delta-Neutral Vaultstakers. β€’ Additional Revenue source for GMD. Additional vaults mean additional revenue for GMD Protocol, which would guarantee additional $ETH yields for GMD and esGMD hold-and-stakers. β€’ Moreover, their presence on Avalanche would help...
...them to secure more partnerships and vault-building capabilities through the blockchain’s vast network of projects and funds. Learn how you can earn 19.5% APY on your $USDC, $ETH, $AVAX, $BTC in our pseudo-delta-neutral(PDN) vaults on top of Avax $GLP...πŸ‘‡
GMD Protocol

GMD Protocol
@GMDprotocol

Deposits are open and auto-compound has been enabled for our vaults deployment on @Avalanche πŸ”Ί ! Learn how you can earn 19.5% APY on your $USDC, $ETH, $AVAX, $BTC in our pseudo-delta-neutral(PDN) vaults on top of Avax $GLP. 🧡 1/11
πŸ”Ά SECURITY @GMD Protocol has been audited by popular auditing firms which are @Solidity Finance - Audits as well as @pashov with no major issues found So talking in terms of security, The GMD protocol has no high-risk external exploits and has addressed and fixed all issues.
πŸ”Ά TOKENOMICS πŸ”ΉMax supply - 80,000 $GMD πŸ”Ή17,000 $GMD locked as $esGMD, which will be used to OTC swap for partnership tokens/ long-term investors through several rounds of funding πŸ”Ή9,000 $GMD will be added to Uniswap V3 and other decentralized exchanges for liquidity.
πŸ”Ή54,000 $GMD is available for the community to use For the detailed info, you can check this out πŸ‘‡ gmd-protocol.gitbook.io/gmd-protocol/g…
πŸ”Ά PARTNERSHIP I believe you'll agree with me that partnership is essential in the world of business and @GMD Protocol isn't left behind in this aspect. They have done some strategic collaborations and partnerships with different projects and they include: @LayerZero Labs
@Trader JoeπŸ”ΊπŸ’™ | Live on Arbitrum πŸŒŠπŸ“˜ @Buffer Finance πŸ™ @solidlizard_fi @Revest (πŸ¦‡,πŸ”Š) πŸ”Ά ROADMAP Below is a summary of their roadmap, however some of their plans have completed.
πŸ”Ά IN CONCLUSION The GMD protocol is a DeFi platform that offers a range of financial services to its users. It differs from other DeFi platforms in its unique algorithmic approach to risk hedging and revenue production, making it a desirable choice for consumers aiming to...
..optimize earnings while reducing risk exposure. The platform's Pseudo-Delta-Neutral vault is a notably innovative feature that enables users to hedge their exposure to price movements in a particular asset, making it a fantastic tool for investors looking to control their risk.
Moreover, the vaults have been performing well since their launch on @Arbitrum (πŸ’™,🧑) if we're to compare the growth in value of gmdUSDC, gmdETH & gmdBTC compared to their corresponding vault assets and the $GLP reserve performance. Aside that, the historical annual percentage yields...
...APYs) for the vaults have been moderately varied, with an average of 15–20%. And last but not the least, they also plan to expand to other chains & leverage derivative platforms through smart vaults (long, short, news trading, social, etc..) and arbitrage pegged assets in...
...the near future and most importantly, comparing GMD circulating supply to the total GMD staked, $GMD is unarguably a good pick and a rare gem to have in one's moon bag. Currently trading on @Uniswap Labs πŸ¦„, @Camelot, @SolidLizard (πŸ’™,🧑) and @Trader JoeπŸ”ΊπŸ’™ | Live on Arbitrum πŸŒŠπŸ“˜
πŸ”Ά SOCIALS Twitter: twitter.com/GMDprotocol Discord: discord.gg/x649QhTYxs medium.com/@gmdprotocol πŸ”Ά OTHER USEFUL LINKS Dapp Website: gmdprotocol.com Dashboard: app.gmdprotocol.com/dashboard Delta-Neutral Vaults: app.gmdprotocol.com/vault
GMD and esGMD Staking: app.gmdprotocol.com/stake To stake on Avax: avax.gmdprotocol.com/vault And that's a wrap ☺️🀝 I hope you found it helpful If you do, ensure to help Like & RT the first tweet here πŸ‘‡ twitter.com/DynamicMuller/…
Dynamic Muller 🌴

Dynamic Muller 🌴
@DynamicMuller

The DeFi market has seen tremendous growth in recent years, providing users with opportunities to earn higher returns. However, it still faces several challenges such as price volatility, liquidity issues & high risk exposure. A thread on how @GMD Protocol solves all these 🧡
Most importantly, do not forget to follow me @Dynamic Muller 🌴 for more educational tweets like this 🀝 To your success, Dynamic Muller 🌴 πŸ”Ά Tagging Gigabrains @MΞ›C @Degen Maker @eighteen. @CAPTAIN KILLER @01124816.bnb (πŸ’™,🧑)(L3, ❄️) @Ser Govanisher @Sid Mh πŸ”Ί @Robin Hood Riches (πŸ’™,🧑)
Dynamic Muller 🌴

Dynamic Muller 🌴

@DynamicMuller
DeFi Analyst / Alpha caller β€’ Threador (On DeFi & Lifestyles) β€’ Content Writer @metavaultTRADE β€’ Creative Designer β€’ Tutor β€’ I πŸ’™ #Arbitrum
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