Avalanche’s top two DeFi protocols, Yield Yak and GMX, have announced a number of partnerships that will assist both ecosystems develop and better synchronize the two communities going forward.

TL;DR

• Up to $100k in AVAX Avalanche Rush rewards are coming to Yield Yak. Rewards will be distributed to Yield Yak’s GLP strategy depositors over the course of four months.
• YY will be launching a novel upgrade to Yak Swap which adds GLP as a tradeable asset. GLP transactions will go via the most under- or over-balanced assets if slippage is less than fees. The adapter is compatible with GMX.io and other protocols.
• YY and GMX communities have completed a YAK <> esGMX treasury swap aimed at aligning financial interests, with esGMX going towards further boosting Yield Yak’s GLP vault.

Avalanche Rush comes to Yield Yak

Launched in August 2021 by the Avalanche Foundation as a liquidity mining incentive program, Avalanche Rush aims to expand the Avalanche Ecosystem, with $4 Million in AVAX allocated to support GMX. Via this allocation, Rush is arriving at Yield Yak with up to $100k in AVAX rewards for its GLP vault.

Depositors will get rewards proportionately over four months. The vault’s 7-day average TVL will decide the month’s prizes. Avalanche GMX traders profit from TVL milestone rewards, which drive GLP development throughout the ecosystem.

Yield Yak’s Approach to GLP

Yield Yak’s GLP strategy was the first of its kind, with a strategy to continuously stake esGMX in perpetuity in order to maximize GLP rewards for all depositors.

Specifically, here’s how it works:

• AVAX rewards are compounded back into GLP
• Earned esGMX are staked forever to increase total vault rewards

Yield Yak’s GLP vault depositors get esGMX without vesting it, increasing their GLP payouts (which requires staking a significant amount of GMX).  The method benefits GMX and Yield Yak users.

About GMX

GMX is a permissionless and decentralized exchange system that provides a capital-efficient on-chain alternative for hedging Bitcoin, Ethereum, and AVAX.

Website | Twitter

About GLP

GMX’s liquidity provider token, GLP, receives 70% of the protocol’s blockchain fees. GLP’s value depends on many things, including the platform’s liquidity pool tokens. BTC.b, WETH, and AVAX make up the GLP pool’s remaining 50%. When leverage traders lose, GLP holders win, and vice versa. Past PnL data, GLP price chart and other stats can be viewed on https://stats.gmx.io.

About Yield Yak

Yield Yak builds tools for DeFi users on Avalanche. Yield Yak Farms auto-compounds rewards for you. Yak Swap finds the best price execution for dex trades. yyAVAX is Avalanche’s highest yielding liquid staking token.

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Users can trade BTC, ETH, AVAX and other top cryptocurrencies with up to 30x leverage directly from their wallet!

Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees and leverage trading.

Dynamic pricing is supported by Chainlink Oracles and an aggregate of prices from leading volume exchanges.

FEATURES OF GMX

🔹Reduce Liquidation Risks

An aggregate of high-quality price feeds determine when liquidations occur. This keeps positions safe from temporary wicks.

🔹Save on Costs

Enter and exit positions with minimal spread and zero price impact. Get the optimal price without incurring additional costs.

🔹Simple Swaps

Open positions through a simple swap interface. Conveniently swap from any supported asset into the position of your choice.

TOKENS CREATING GMX ECOSYSTEM 

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