🧁 GMX USDC Lending Vault

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.

	Description
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

For more FAQ, go to USDC Lending GLP Vault Yield explained FAQ.