# 🧁 GMX Leverage GLP Vault

GLP is [GMX](https://gmx.io) perpetual exchange's global liquidity pool token that constitutes multiple tokens, mainly stablecoins, BTC and ETH. This vault strategy works in tandem with the [Stablecoin Lending Vault](https://baklavaspace.gitbook.io/main/avalanche-vaults/gmx-vaults/gmx-usdc-lending-vault) by borrowing stablecoin from the lending vault to enter a leverage position in GLP. 

The leverage we are using is 3.25x. Initially the design of the GLP 2.25x leverage vault is referenced upon the [JonesDao](https://www.jonesdao.io/) vault, which is a leveraged GLP vault only available on Arbitrum. We have done our own back-testing and researched on various models for the leveraged GLP vault and found that that 3.25x is the most optimal leverage. 

Baklava Space is the only similar offering on Avalanche.

<table><thead><tr><th width="154"></th><th>Description</th><th data-hidden></th></tr></thead><tbody><tr><td>Method</td><td>Deposit sGLP or GLP component assets Into the vault. This vault will borrow USDC from the lending vault to purchase more GLP, achieving a leveraged position of 3.25x.</td><td></td></tr><tr><td>User Profile</td><td>For GLP and GMX maxis who want to double down on their GLP positions.</td><td></td></tr><tr><td>Yield Source</td><td>Borrowed GLP</td><td></td></tr><tr><td>Risk </td><td>Principal not protected as GLP deposited is used as collateral to borrow from <a href="gmx-usdc-lending-vault">USDC Lending Vault</a>.</td><td></td></tr><tr><td>Lockup</td><td>No Lockup, principal can be withdrawn anytime.</td><td></td></tr><tr><td>Payout </td><td>$AVAX</td><td></td></tr><tr><td>Start Date</td><td>2023 on Avalanche.</td><td></td></tr><tr><td>Management Fees</td><td><p>10% of leverage earnings is charged as management fees (note:we do not charge on your principal earnings) </p><p></p><p>As a comparison, JonesDAO on Arbitrum charges 20% management fees as of March 2023</p></td><td></td></tr><tr><td>Withdrawal Fees</td><td>0.5% withdrawal fee</td><td></td></tr></tbody></table>