As the liquidity token for GMX, a decentralized perpetuals exchange built on Arbitrum, GLP provides an APR that is paid in ETH and driven by fees generated from trading, liquidations, and minting/redeeming GLP.
LONDON, Feb. 15, 2023 /PRNewswire-PRWeb/ -- Voltz Protocol, DeFi's first synthetic interest rate swap (IRS) AMM, launches a GLP yield rate market on GMX, providing traders an opportunity to speculate on the yield GLP will generate, which are paid in ETH, without needing to own or stake GLP. GLP is the liquidity token of the GMX exchange, a decentralized perpetual exchange built on Arbitrum.
Simon Jones, CEO & Co-Founder of Voltz Labs, said, "GLP is the first Voltz Protocol market being launched on Arbitrum, so this is exciting for the community for a number of reasons. The GLP market itself is extremely volatile week on week. Launching this market on Voltz Protocol provides traders the opportunity to speculate on GLP returns without ever owning GLP. And since the returns are paid in ETH it also opens the door to interesting ETH-based structured products for traders too."
The trading on GMX is facilitated by a multi-asset pool called GLP. It consists of 50-55% stablecoins, 25% ETH, 20% BTC, and 5-10% other altcoins, such as Chainlink and Uniswap.
The liquidity is added when users mint GMX Liquidity Provider Tokens (GLP). In exchange for minting GLP, they earn 70% of all fees generated on that particular blockchain. Contrary to some liquidity pools, GLP suffers no impermanent loss.
Anyone can become a supplier of this liquidity pool and, in return, earn fees. Users who want to trade perpetual swaps or spot on GMX can do it using the assets provided, and now they can trade GLP yield specifically on Voltz Protocol. Moreover, the GLP pool is a counterparty to the traders; as GLP token holders provide the liquidity used for leverage trading, they profit when traders lose — and vice versa.
Because GLP price is a proxy to traders' directional views on many different assets, it presents the opportunity for traders to leverage the Voltz Interest Rate Swap protocol in order to hedge or speculate on future rates.
To learn more about Voltz Protocol, visit voltz.xyz and follow them on Twitter @voltz_xyz.
For media inquiries, please contact Phil LeRoy at (310) 260-7901 or phil(at)melrosepr(dot)com.
About Voltz Protocol
Voltz Protocol provides the underlying framework DeFi needs to become the world's financial system through its decentralized, transparent, and open-source products. Voltz is DeFi's first synthetic interest rate swap AMM with more than $4.6B in notional trade volume. Voltz protocol puts the power of rate trading and liquidity into the hands of everyday traders and developers, ushering in a new era of composable, permissionless, and open-source financial products.
Media Contact
Phil LeRoy, MelrosePR, 310-260-7901, [email protected]
SOURCE Voltz
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