What is GMD Protocol? GMD Protocol is an aggregation and profit optimization platform built on Arbitrum. GMD uses delta-neutral and pseudo-delta-neutra strategies to aggregate returns from the GLP or LP index group for the individual assets within the index group.
So What is GMD? How it works. Let’s find out in this article!
What is GMD Protocol?
GMD Protocol is a profit aggregation and optimization platform built on Arbitrum. GMD uses delta-neutral and pseudo-delta-neutra strategies to aggregate returns from the GLP or LP index group for the individual assets within the index group. GMD helps eliminate losses for users during the Farming process.
Mechanism of Action
Main products of GMD Protocol
- GMD’s first products are BTC, ETH, USDC single-stake vaults built on top of GMX and GLP.
- GMD’s reserve will profit from the GLP underlying backing and all revenue from single-share vaults.
- Besides yielding vaults, GMD also aims to leverage derivatives platforms through smart vaults and fixed asset arbitrage in the near future.
Delta-Neutral Vaults
GMD’s single-share vaults are built upon GLP with Pseudo-Delta-Neutral strategies. The GMD protocol will provide single-share vaults for BTC, ETH, USDC asset classes.
People who stake assets into the Vault will receive gmdTokens representing their position in the vault. For stake positions for USDC, ETH and BTC respectively will receive gmdUSDC, gmdETH and gmdBTC as receipt tokens representing the initial positions.
Users can use gmdTokens assets to Farm liquidity with pairs gmdUSDC-USDC, gmdETH-ETH, gmdBTC-BTC on Uniswap V3. This helps increase users’ profits when depositing assets into GMD’s Vault.
Pseudo-Delta-Neutral
First of all, we need to understand some risks when holding GLP:
- Profits and losses of traders from the GLP group
- Temporary loss due to price fluctuations along with changes in asset proportion
- Volatility from small assets in the group (Link, Uni)
With the Pseudo-Delta-Neutral strategy, the protocol’s hard currency will provide a fund to support the balance of assets in the Vault according to the ratio of GLP to GMX.
The Pseudo-Delta-Neutral strategy can be understood as tThe deposited assets will be manually rebalanced so that the component ratio will be exactly equal to the GLP asset component ratio.
Revenue
GMD Protocol will earn Real Profit Revenue in ETH from the following sources:
- The protocol will collect half of GLP’s ETH rewards from Delta-Neutral Vaults as performance fees, protocol revenue, and distributed to GMD stakers in WETH.
- GMD earns WETH rewards from GLP in the GMD reserve
- GMD also earns fees collected through protocol-owned liquidity, which will be converted into WETH and distributed.
Development roadmap
Core Team
Updating…
Investors
Updating…
Tokenomics
General information about GMD Token
- Token Name: GMD
- Ticker: GMD
- Blockchain: Arbitrum
- Standard: ERC-20
- Contract: 0x4945970efeec98d393b4b979b9be265a3ae28a8b
- Total supply: 80,000
- Maximum supply: 80,000
Token Allocation
- 21.3%-17,000 GMD: Locked as esGMD. They will be used to swap OTC for long-term partner/investor Tokens through several funding rounds.
- 11.3%-9,000 GMD: Will be used to replenish liquidity on Uniswap V3 and collaborative decentralized exchanges on Arbitrum.
- 67.5%-54,000 GMD: Will be given to the community.
Token Use Case
GMD Token holders can participate in protocol governance and earn revenue from GMD Protocol.
Exchanges
GMD tokens are traded on exchanges such as Uniswap, Camelot,…
Information Channel of GMD Protocol
- Website: https://gmdprotocol.com/
- Twitter: https://twitter.com/GMDprotocol
- Medium: https://medium.com/@gmdprotocol
- Discord: https://discord.gg/x649QhTYxs
Summary
So I have clarified what GMD Protocol is? Overview of GMD Protocol cryptocurrency. Hope this article provides you with a lot of useful knowledge!