This vault is suitable for depositors who want to earn yield in BTC, ETH, ARB, or AVAX from fees in the GMX GM trading pools, while believing that the price of these assets will trend upwards with high market volume.
Essentially, this vault is best if you believe: → BTC, ETH, ARB, or AVAX will continue in an upward trend. 💹
→ Your selected GMX GM pools will continue to attract traders for earning fees. 🧲
→ The perp traders on your selected pools will continue to lose more than they gain. 🕗
Using 3x leverage on deposits, this strategy earns more yields from the GM pool trading fees, while also having greater exposure to the price of the volatile asset and the trader PnL.
Avalanche & Arbitrum
Implementation (BTC example)
- Depositor deposits BTC, USDC, or GM token to the vault and receives svTokens
- Vault borrows USDC so that the total value of assets are now 3x the value initially deposited
- Vault deposits all assets to mint GM tokens
- Keeper compounds additional rewards (if any) for more GM token
- Keepers check vault’s position status to determine if a rebalance is needed
- Depositor withdraws their position from the vault by burning svTokens
3L-BTCUSDC-GMX2and receives BTC or GM tokens
Rebalance: a “reset” of the vault’s assets such that the debt ratio stays within a healthy range. In uptrending markets, this means the vault will increase leverage over time, and in downtrending markets, the vault will decrease leverage over time. In case of a rebalance for this vault, the debt ratio will be automatically reset to 66%.
Steadefi charges a 2% management fee annually on the overall value of the vault, as well as a 20% fee on earned yields from the underlying protocol.
These fees are maintained in the treasury for $esSDY dividend staking.
- GMX traders make consistent and massive gains on the vault’s underlying GM pool.
- A considerable and prolonged price drop of the volatile asset.
- Smart contract risks for Steadefi and/or GMX.