The network’s reduced transaction fees and faster confirmation times have attracted numerous DeFi protocols, offering investors various avenues to maximize their returns.

Here’s an exploration of some of the top yield farming and staking options currently available on Arbitrum:

1. GMX: Decentralized Perpetual Exchange

GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades. Users can stake their GMX tokens to earn a share of the platform’s fees, providing a consistent yield over time. This staking mechanism benefits investors directly from the platform’s trading volume, aligning incentives between the protocol and its users.

2. Trader Joe: Innovative Liquidity Pools

Originally launched on Avalanche, Trader Joe has expanded to Arbitrum, introducing its unique Liquidity Book pools. These pools offer dynamic fees and concentrated liquidity, enabling liquidity providers to earn higher yields. The upcoming auto-pools feature aims to automate liquidity management, further enhancing user experience and potential returns.

3. Curve Finance: Tricrypto Pool

Curve Finance, renowned for its efficient stablecoin swaps, offers the Tricrypto pool on Arbitrum, comprising Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). Liquidity providers in this pool gain exposure to these three major assets while earning trading fees and additional rewards. This strategy suits investors seeking diversified exposure with relatively stable returns.

4. Pickle Finance: Yield Aggregation Services

Pickle Finance operates as a yield aggregator, optimizing returns for users by auto-compounding yields from various protocols. By deploying strategies that continually reinvest earnings, Pickle Finance enhances the potential returns for liquidity providers on Arbitrum.

5. Beefy Finance: Multi-Chain Yield Optimizer

Beefy Finance is a decentralized, multi-chain yield optimizer that has integrated with Arbitrum. It offers various vaults where users can deposit assets, and the platform automatically compounds yields, maximizing returns through efficient strategies.

6. PlutusDAO: Governance and Yield Optimization

PlutusDAO is a governance aggregator aiming to maximize liquidity and rewards for its users. By locking tokens within the protocol, users can earn enhanced yields and participate in governance decisions, aligning incentives between stakeholders.

7. GND Protocol: Leveraged Yield Farming

GND Protocol offers leveraged yield farming strategies on Arbitrum, allowing users to amplify their exposure to yield farming opportunities. By utilizing leverage, investors can potentially increase their returns, though it’s essential to be aware of the associated risks.

8. Arbidex: Community-Centric DEX

Arbidex positions itself as a decentralized exchange built by and for the community. It offers yield farming opportunities with a focus on returning 100% of fees to ARX token holders, promoting a community-first approach.

9. Mellow Protocol: Automated DeFi Strategies

Mellow Protocol specializes in active liquidity management and creating automated DeFi strategies. Users can participate in various vaults that deploy complex strategies to optimize yields on their assets.

10. Metavisor: Liquidity Optimization Platform

Metavisor provides liquidity automation, optimization, and management services. It assists liquidity providers in maximizing their returns by automating the management of their positions across different protocols on Arbitrum.

Considerations for Yield Farmers

While Arbitrum offers a plethora of yield farming opportunities, investors must conduct thorough research and consider factors such as:

• Impermanent Loss: Providing liquidity to pools with volatile assets can lead to impermanent loss, where the value of deposited assets decreases compared to holding them outright.
• Smart Contract Risks: Engaging with DeFi protocols involves interacting with smart contracts, which may have vulnerabilities. It’s essential to assess the security measures and audits of each platform.
• Market Conditions: Yield farming returns can be influenced by broader market dynamics. Investors should remain aware of market trends and adjust their strategies accordingly.

In conclusion, Arbitrum’s ecosystem presents diverse yield farming and staking opportunities catering to various risk appetites and investment strategies. By carefully selecting platforms and staying informed about potential risks, investors can optimize their returns in this burgeoning DeFi landscape.

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Here are some of the top projects making waves on Arbitrum:

1. GMX: Decentralized Perpetual Exchange

GMX stands out as a premier decentralized perpetual exchange on Arbitrum, allowing users to trade various tokens with leverage up to 100x. Liquidity is managed through the GLP token, and stakers are rewarded in ETH and AVAX. As of late 2024, GMX has facilitated over $175 billion in cumulative trading volume, serving a user base exceeding 660,000. The platform’s innovative features, such as the SHIFT liquidity management system, continue to solidify its position in the DeFi space.

2. Merkl by Angle Labs: Efficient Reward Distribution

Merkl has become an integral component of Arbitrum’s DeFi ecosystem by streamlining reward distribution across multiple protocols. Its efficient system ensures that users receive timely and accurate rewards, enhancing the overall user experience and fostering greater participation in various DeFi projects

3. Camelot: Community-Driven DEX

Camelot is a decentralized exchange (DEX) on Arbitrum that emphasizes community engagement and permissionless interactions. It offers a dual-token system comprising the native liquid GRAIL and the non-transferable governance token xGRAIL, promoting sustainable liquidity management and robust market control. Camelot’s approach empowers projects to directly engage with the protocol, fostering a vibrant and participatory ecosystem.

4. Hyperliquid: Advanced Trading Platform

Hyperliquid is an advanced trading platform operating on Arbitrum, designed to cater to both novice and experienced traders. It offers a suite of tools and features that enhance trading efficiency and effectiveness, contributing to the dynamic and diverse DeFi landscape on Arbitrum

5. Aave V3: Decentralized Lending Protocol

Aave V3 has integrated with Arbitrum to provide users with decentralized lending and borrowing services. This integration allows for faster transactions and reduced fees, making decentralized finance more accessible and efficient for users

These projects exemplify the innovative spirit driving the growth of Arbitrum’s ecosystem. By leveraging Arbitrum’s scalable and efficient infrastructure, they are redefining the possibilities within decentralized finance.

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In this article, we dive into some of the top DeFi projects thriving on Arbitrum, exploring how they redefine financial interactions and set benchmarks for the broader crypto ecosystem.

1. GMX: Redefining Perpetual Trading

GMX is Arbitrum’s flagship decentralized spot and perpetual trading platform. It allows users to leverage assets directly on-chain while benefiting from highly competitive fees. With real yield and seamless user experience, GMX continues to attract traders who seek an alternative to traditional platforms.

2. Camelot: A Customizable DEX

Camelot is more than just a decentralized exchange (DEX). It’s a tailored liquidity protocol designed for flexibility and performance. With its dual liquidity approach, Camelot offers efficient trading while supporting emerging DeFi protocols, making it a cornerstone for Arbitrum’s ecosystem.

3. Radiant Capital: Cross-Chain Lending Simplified

Radiant Capital pioneers the next generation of decentralized lending, enabling users to deposit and borrow across multiple chains from a single platform. This project epitomizes interoperability while leveraging Arbitrum’s speed and cost-effectiveness to redefine lending and borrowing in DeFi.

4. Stryke: Simplifying Options Trading

Stryke (formerly Dopex) (Decentralized Options Exchange) is making waves by simplifying options trading for all. Through innovative features like Single Staking Options Vaults (SSOVs) and rebates, Dopex provides users with lucrative ways to hedge risks or earn passive income, all while benefiting from Arbitrum’s low latency.

5. TreasureDAO: Gaming Meets DeFi

TreasureDAO is where decentralized finance meets gaming. As Arbitrum’s leading GameFi and NFT ecosystem, it creates an environment where users can engage with digital assets, build immersive experiences, and access financial rewards

Why Arbitrum?

The success of these DeFi projects is deeply tied to Arbitrum’s advanced technology. By offering faster transactions, reduced gas fees, and Ethereum-level security, Arbitrum ensures that developers have a solid foundation for innovation. This scalability and efficiency translate directly to a better experience for users.

The Future of DeFi on Arbitrum

As DeFi continues to evolve, the projects on Arbitrum are setting new standards for what decentralized finance can achieve. With a robust ecosystem, these protocols are attracting both institutional and retail participants, solidifying Arbitrum’s position as a critical player in the blockchain space.

Arbitrum’s journey to unlock DeFi’s potential has only just begun, and the future looks brighter than ever. Whether you are a seasoned trader, a DeFi enthusiast, or a curious newcomer, Arbitrum offers a gateway to the next generation of financial freedom

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Unlike traditional futures, perpetual contracts have no expiration date, making them a favorite for both short-term and long-term strategies. Below, we explore the leading platforms revolutionizing this space.

1. dYdX

dYdX is a pioneer in decentralized perpetual trading. Built on Layer 2, it offers deep liquidity, lightning-fast transactions, and minimal fees, making it a top choice for both beginners and seasoned traders.

KEY FEATURES:

• Up to 20x leverage.
• Advanced order types like limit and stop-loss.
• Non-custodial trading with Ethereum security.

2. GMX

A favorite among DeFi enthusiasts, GMX operates on Arbitrum and Avalanche, offering seamless perpetual trading with innovative mechanisms like the GLP liquidity pool.

KEY FEATURES

• Community-driven development.
• Earn rewards as a liquidity provider through GLP tokens.
• Low trading fees and no slippage.

3. Perpetual Protocol (PERP)

As its name suggests, Perpetual Protocol specializes in perpetual contracts. The platform is powered by vAMMs (virtual automated market makers) to ensure on-chain liquidity.

KEY FEATURES

• Incentives for liquidity providers.
• Transparent pricing with a decentralized architecture.
• Up to 10x leverage.

4. Kwenta

Built on Synthetix, Kwenta offers access to synthetic assets and perpetual trading with zero slippage. It’s an excellent option for traders who want exposure to both crypto and non-crypto markets.

KEY FEATURES

• Strong community governance.
• Dynamic fee structure.
• Trade assets like forex and commodities.

5. Drift Protocol

Drift is a Solana-based decentralized exchange offering perpetual futures with lightning-fast execution and low fees. It combines order book mechanics with DeFi’s trustless nature.

KEY FEATURES

• Rapid transaction speeds are enabled by Solana.
• Advanced risk management tools.
• Capital-efficient trading with cross-margin support.

Why Perpetual Trading Matters in DeFi

Perpetual trading platforms democratize access to advanced financial instruments, previously limited to centralized exchanges.

These platforms provide:

1. Decentralized Ownership
   Non-custodial trading ensures complete control over funds.
2. Enhanced Accessibility
   Permissionless access enables global participation.
3. Diverse Asset Exposure
   Trade beyond cryptocurrencies, including forex, stocks, and commodities.

Final Thoughts

The competition among DeFi platforms for perpetual trading is fierce, driving innovation and offering users better trading experiences. Whether you’re seeking low fees, high leverage, or advanced features, these platforms provide robust ecosystems tailored to various needs.

Ready to dive into perpetual trading? Do your research and choose the platform that best aligns with your trading goals.

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Combining innovative features with robust security, GMX offers significant advantages to its users. Here’s a closer look at why traders and liquidity providers are gravitating toward GMX.

For Traders: A Seamless and Cost-Effective Experience

1. Zero Price Impact Trades

GMX enables traders to execute trades without worrying about price slippage. This is especially valuable in volatile markets, where small price changes can lead to significant losses. With GMX, you can trade confidently, knowing your transaction will be executed as intended.

2. Low Trading Fees

High fees often deter traders from executing frequent trades. GMX addresses this concern with minimal trading fees, allowing users to maximize their returns.

3. Leveraged Trading Opportunities

For experienced traders looking to amplify their positions, GMX offers leveraged trading. This feature lets users gain more exposure to assets without requiring the full capital upfront, opening the door for higher potential profits.

4. Multi-Asset Support

GMX supports a wide range of assets, ensuring traders have the flexibility to diversify their portfolios. From popular cryptocurrencies like Bitcoin and Ethereum to lesser-known tokens, GMX provides a comprehensive trading ecosystem.

For Liquidity Providers: Sustainable Rewards and Security

1. Stable Liquidity Pools

Liquidity providers (LPs) play a crucial role in ensuring GMX’s seamless functionality. By depositing assets into liquidity pools, LPs enable traders to execute transactions efficiently. In return, they earn rewards based on the platform’s trading activity.

2. Dual Token Model

GMX operates with two tokens: $GMX and $GLP. While $GMX holders benefit from staking rewards, $GLP represents liquidity pool tokens, offering LPs a share of trading fees and leveraged trading profits.

3. Risk Mitigation Mechanisms

GMX incorporates mechanisms to protect liquidity providers from extreme market volatility. This includes innovative risk management features and incentives that promote long-term participation.

4. Transparency and Decentralization

As a decentralized platform, GMX ensures that all transactions are transparent and secure. This trustless environment encourages more users to become liquidity providers, further enhancing the platform’s efficiency.

A Unified Ecosystem on Arbitrum

GMX’s deployment on Arbitrum, a Layer 2 scaling solution for Ethereum, further strengthens its offering. By leveraging Arbitrum’s low fees and high throughput, GMX delivers a fast, cost-effective trading experience for users.

Why GMX Stands Out

Whether you’re a trader seeking low fees and leverage or a liquidity provider aiming for sustainable rewards, GMX offers unmatched benefits in the DeFi space. Its innovative features, combined with the scalability of Arbitrum, make it a platform worth exploring for anyone involved in decentralized finance.

Dive into the GMX ecosystem today and experience the future of trading and liquidity provision!

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In this article, we delve into some of the remarkable success stories of startups that have harnessed the power of Arbitrum to revolutionize their operations and achieve significant milestones.

Uniswap V3 on Arbitrum

Uniswap, one of the largest decentralized exchanges (DEXs), successfully integrated with Arbitrum to offer a seamless trading experience. The deployment on Arbitrum allowed Uniswap V3 to significantly reduce gas fees and transaction times, attracting a broader user base and increasing trading volumes. This move not only enhanced user satisfaction but also solidified Uniswap’s position as a leader in the DeFi space.

Offchain Labs

Offchain Labs, the team behind Arbitrum, itself stands as a testament to the potential of layer-2 solutions. By focusing on scalability and user experience, Offchain Labs has developed a robust platform that supports a wide range of decentralized applications (dApps). Their success story is not just about technological innovation but also about building a community and ecosystem that fosters growth and collaboration.

GMX

GMX, a decentralized spot and perpetual exchange, leveraged Arbitrum to offer high-speed trading with minimal fees. The platform’s success is evident in its growing user base and the increasing volume of trades executed on its platform. By utilizing Arbitrum’s capabilities, GMX has positioned itself as a competitive player in the DeFi landscape, providing traders with a reliable and efficient alternative to traditional exchanges.

TreasureDAO

TreasureDAO, a decentralized autonomous organization, utilized Arbitrum to build a community-driven NFT ecosystem. The TreasureDAO platform provides a platform for NFT enthusiasts with low-cost transactions and fast processing times, creating a vibrant marketplace for minting, trading, and interacting with NFTs without high fees or delays.

Arbitrum Ecosystem Projects

The Arbitrum ecosystem thrives with projects in gaming, finance, and supply chain management. These startups utilize Arbitrum’s technology to surpass blockchain limitations, achieving scalability, speed, and cost-efficiency.

In Summary

The success stories of startups using Arbitrum highlight the transformative impact of layer-2 solutions on the blockchain industry. Arbitrum addresses scalability and high transaction costs, facilitating innovation and growth for startups in decentralized technologies. As projects integrate with Arbitrum, the blockchain ecosystem is set to become more vibrant and dynamic in the future.

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Introduction to Decentralized Derivatives

Decentralized derivatives represent a groundbreaking evolution in the realm of finance, propelled by the rise of decentralized finance (DeFi) protocols. These derivatives, built on blockchain networks like Ethereum, offer a paradigm shift from traditional financial instruments by enabling peer-to-peer trading without reliance on intermediaries. At their core, decentralized derivatives are contracts whose value is derived from an underlying asset or set of assets. This innovative financial tool allows investors to speculate or hedge against market fluctuations, all within a decentralized and trustless environment.

One of the defining features of decentralized derivatives is their reliance on smart contracts, self-executing code that enforces and facilitates the terms of these agreements. Through these tamper-resistant contracts, counterparties engage in derivative transactions, ensuring transparency, security, and automation without the need for intermediaries. This not only streamlines the process but also mitigates counterparty risks traditionally associated with centralized systems.

The allure of decentralized derivatives extends beyond traditional boundaries, offering accessibility to a global audience and operating 24/7. With the potential to trade diverse assets—from cryptocurrencies to commodities—decentralized derivatives foster a new era of financial inclusivity, where anyone with an internet connection can participate in sophisticated financial instruments previously reserved for institutional players. This democratization of finance aligns with the core ethos of DeFi, promising greater financial empowerment and autonomy for users worldwide.

Risk Mitigation Strategies of Decentralized Derivatives

In the dynamic landscape of decentralized derivatives, implementing effective risk mitigation strategies is paramount to navigate the inherent volatility and uncertainties. One key strategy revolves around the use of decentralized stablecoins as a risk hedge. By pegging their value to established fiat currencies or commodities, stablecoins provide a stable store of value amidst market fluctuations. Traders and investors can utilize stablecoins to swiftly move funds in and out of positions, shielding their assets from the extreme price volatility often associated with decentralized markets.

Smart contract audits and due diligence constitute another critical risk mitigation avenue. Given the centrality of smart contracts in executing decentralized derivative transactions, thorough code reviews and security assessments become essential. Engaging reputable auditing firms to assess the integrity of the underlying smart contracts helps identify and rectify vulnerabilities, reducing the risk of potential exploits and vulnerabilities that could jeopardize the integrity of derivative contracts. This proactive approach not only safeguards participants’ funds but also contributes to the overall trustworthiness of decentralized derivative platforms.

Furthermore, the diversification of assets within decentralized derivatives portfolios emerges as a potent risk management tactic. By spreading investments across various assets and markets, traders can mitigate the impact of adverse price movements in any single asset class. Diversification not only acts as a safeguard against unforeseen market events but also contributes to a more balanced risk-return profile, aligning with traditional financial principles applied in decentralized environments. The careful selection of diverse assets helps create a resilient portfolio that can better weather market turbulence and unexpected shocks.

Regulatory Challenges and Opportunities of Decentralized Derivatives

Navigating the regulatory landscape poses both challenges and opportunities for decentralized derivatives within the broader scope of decentralized finance (DeFi).

Innovation and Future Trends of Decentralized Derivatives

The world of decentralized derivatives is brimming with innovation, promising to reshape the financial landscape in exciting ways. Here are some of the hottest trends to watch:

1. Programmable Risk Management:

Gone are the days of rigid, one-size-fits-all risk management. Decentralized derivatives are paving the way for dynamic, on-chain risk protocols that adjust in real-time based on market conditions and individual needs. Imagine smart contracts automatically hedging your positions or triggering margin calls to minimize losses, all without relying on centralized intermediaries.

2. Democratized Derivatives Access:

Decentralized exchanges (DEXs) are tearing down the barriers to entry, removing gatekeepers and minimum investment requirements. This opens up the world of derivatives to a broader range of participants, from retail investors to small businesses, empowering them to manage their risk and pursue sophisticated investment strategies.

These are just a glimpse into the vibrant future of decentralized derivatives. With increased research, development, and regulatory clarity, we can expect even more groundbreaking innovations that revolutionize risk management, democratize access, and unlock the full potential of this transformative technology.

Case Studies and Success Stories of Decentralized Derivatives

Conclusion

The ascent of DeFi derivatives marks a new dawn for risk management in the financial world. By harnessing the power of blockchain technology, DeFi derivatives offer transparency, accessibility, and innovative tools that empower users to navigate volatile markets with greater confidence. As regulatory frameworks evolve and collaborative innovation flourishes, the future of risk management lies increasingly in the hands of a decentralized, empowered community. The time is now to embrace the transformative power of DeFi derivatives and build a more resilient, inclusive, and equitable financial system for all.

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GLP, GMX’s multi-asset liquidity pool, supports V1 swaps and leverage trading. GLP liquidity is user-contributed. Mint and redeem GLP tokens using any index asset GMX Partners with RedStone Oracles. The overall index value, including gains and losses from open bets, divided by the GLP supply determines minting and redemption prices.

On Arbitrum, GLP token holders receive 70% of platform fees in ETH and on Avalanche, GLP token holders receive the same share of protocol fees in AVAX.

DeltaPrime leverages the growth of GMX with GLP feed

GMX, Avalanche’s primary perpetual futures platform, has experienced significant growth in TVL over the past 18 months due to its user-friendly interface and accommodating all traders and investors, regardless of risk level.

On DeltaPrime, you can use your GLP as collateral to borrow against: a significant innovation. Additionally, you can mint it straight from your Prime Account, fully cross-margin.

What are the benefits of investing in GLP through DeltaPrime?

• Deposit GLP into DeltaPrime and borrow against your GLP.
• Mint GLP against (LP-)tokens in your Prime Account.
• Farm multiplied GLP with partners like Yield Yak within your Prime Account.

RedStone provides a precise real-time valuation for GLP tokens. This enables over- and undercollateralized lending protocols such as DeltaPrime to bring their liquidity to GMX building a capital-efficient ecosystem with lower slippage in-between trades.

DeltaPrime relies on real-time price data for secure undercollateralized loans, ensuring precision and avoiding deficient debt creation. RedStone’s pricing data provides the Health Score, which advises the protocol when to liquidate user positions and return tokens to its liquidity providers. This ensures accurate representation of collateral prices and protects DeltaPrime’s liquidity providers’ funds.

The RedStone X model is designed to improve the efficiency and accuracy of oracle data feeds. This model allows for multiple data sources to be aggregated, creating a more reliable and precise price feed. It’s a robust solution that enhances the security of a new wave of super-efficient DeFi projects, ensuring safer, more dependable undercollateralized lending operations.

“Our infrastructure is adjusted to swiftly add LP tokens, hence GLP and V2 GM tokens are a perfect fit. We facilitate the growth of the ecosystem on top of GMX and keep expanding the RedStone X model, which offers almost zero latency for dApps.” said Jakub Wojciechowski, RedStone Founder & CEO.

RedStone plans to expand its oracle services to support GM tokens, the fundamental assets underpinning GMX V2. This strategic expansion aims to integrate GM tokens into DeFi applications like vaults and lending platforms.

RedStone Oracles will provide accurate, real-time valuations, enabling platforms to safely and efficiently manage their financial operations, enhancing the overall robustness and reliability of the GMX V2 ecosystem.

About GMX

GMX is a permissionless, decentralized exchange protocol that provides a capital-efficient on-chain solution for both hedging and taking leveraged exposure to leading cryptocurrencies including BTC, ETH, and AVAX.

Website | Twitter

About RedStone

RedStone is revolutionizing the Oracles industry by implementing novel modular design and 3 tailor-made data consumption models. You can build the new generation of DeFi & Web3 protocols based on RedStone’s versatile data offering of long-tail, Lp, Ecosystem-native tokens, as well as Real World Data and custom feeds.

Website | Twitter

SOURCE: https://blog.redstone.finance/2023/06/20/gmx-to-cooperate-with-redstone-oracles-boosting-ecosystem-with-glp-and-gm-v2-lp-tokens/

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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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A long-term partnership for Arbitrum

GMX’s success has propelled the expansion of the whole Arbitrum ecosystem. GMX is a pioneer in providing clients with reliable alternatives to centralized commodities as a result of recent market events.

Camelot is a custom-built protocol that aims to become the native Arbitrum DEX. By building multiple novel features from the ground up, Camelot enables higher capital efficiency and attempts to bring the real-yield approach to a DEX. As part of this partnership, GMX will receive an ownership allocation in the Camelot protocol and attractive incentives for GMX pools. Not only will this benefit the GMX protocol directly, but it additionally provides further yield opportunities for the GMX community.

Camelot will maintain the liquidity of GMX tokens as GMX continues to pioneer the decentralized derivatives market.

Supporting GMX through bespoke liquidity strategies

GMX is a decentralized perpetual exchange with cheap swap costs, 0% price effect transactions, and x50 leverage. GMX’s innovative tokenomics, powerful trading product, and GLP model make it one of the most lucrative protocols in the field.

Camelot’s vision is to build innovative infrastructure that supports other Arbitrum builders through custom features that don’t exist anywhere else:

1. Unique AMM implementation that supports volatile & stable assets with dynamic fees (custom fees per pool, as well as per buy or sell direction)
2. A custom NFT wrapper for staked positions that allows LPs to be reused for further capital efficiency gains
3. Nitro pools allow protocols to permissionlessly incentivize liquidity based on custom requirements
4. Innovative escrowed tokenomics that enable a more sustainable protocol that can capture real yield for holders

Camelot will use these features to ensure deep, adaptable liquidity for the GMX team. Able to implement an efficient token liquidity incentives structure, resulting in improved user trading and greater LP returns.

The community will be able to use genesis pools, Nitro pools, and other features after launch. With spNFT, users can build custom GMX strategies by varying lock durations and holding xGRAIL.

About GMX

GMX is a permissionless and decentralized exchange system that provides a capital-efficient on-chain alternative for hedging Bitcoin, Ethereum, and AVAX. GMX was developed by the Global Markets Exchange (GMX) company.

Website | Twitter

About Camelot

Camelot is an innovative and highly flexible DEX built to support the Arbitrum ecosystem. Community driven and capital efficient.

Website | Twitter

SOURCE: https://camelotdex.medium.com/camelot-announces-gmx-as-a-key-launch-partner-b9875669782e

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