🧁 GMX USDC Lending Vault
Last updated
Last updated
GLP is a global liquidity pool that has multiple tokens, mainly stablecoins, BTC and ETH. The USDC lending vault works in tandem with the GLP leverage vault by lending to the GLP vault to enter a leverage position in GLP. Stablecoin lending vault receives the yield from the leveraged GLP vault with principal protected by over collaterised GLP.
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For more FAQ, go to USDC Lending GLP Vault Yield explained FAQ.
Method
User deposits stablecoin into the vault. This vault then lends the stablecoin for the Leveraged GLP vault to purchase more GLP. The GLP in the vault acts as the collateral to repay the USDC principal. Yield from the vault will be automatically compounded.
User Profile
For risk averse users who accepts a lower yield from GLP, but having the principle amount protected by GLP collateral.
Yield Source
Leveraged GLP vault
Risk
USDC principal protected unless GLP value suffers drastic drop which causes insufficient principal repayment. This is mitigated as the vault will ensure that the GLP vault will be sold to repay the borrowed stablecoin before the limit is reached.
Lockup
No lock up period, able to withdraw principal anytime.
Payout
USDC
Start Date
2023 on Avalanche.
Management Fees
No fees charged by Baklava Space, as this vault takes a cut of the yield from the leverage borrowing (yield rates listed above)
Withdrawal Fees
0.5% withdrawal fee