GMX - GLP
GMX is a decentralized perpetual exchange that offers real yield via its $GLP Token. The $GLP token is an index of several assets:
It provides liquidity to protocol users who wish to trade on GMX. Let's make a comparison between the fees of a decentralized perpetual exchange and a casino: In the long term the casino always wins. It comes down to the same thing with perpetual exchanges because in the long run the overwhelming majority of traders lose money.
Good for GLP stakers, gmx traders are among the worst performing in the crypto world as this chart shows:
The staking of GLP allows to have real yield via the money of the traders of the GMX platform. Returns are around 20% except in case of high price volatility where it is not uncommon to see the APR rise to 30% on $ETH.
Strategies: $GLP is not a totally stable asset, we will DCA to smooth out our acquisition price in order to optimize the size of our position as well as the size of the rewards. The $GLP will be the main asset of our Yield Aggregator program because GMX is one of the few projects to offer such a high APR on $ETH while offering real yield. In the long term we are confident about the evolution of the price of the GLP assets, that's why we will not always use a delta neutral strategy. The part of our treasury invested in a delta neutral strategy on GLP will be invested via .
Our ambition is to become the biggest yield aggregator of Arbitrum, 15% of the rewards will be compounded to permanently grow the treasury to ensure larger rewards in the long run for all $KTN stakers. 15% will go to the team (as a reminder, we have no supply tokens). The other 70% will be distributed weekly to $KTN stakers. The $GLP APR includes, in addition to the 20% in $ETH, 4% in $EsGMX. The $EsGMX will be permanently compounded for at least 1 year. The $EsGMX APR is 7% in $ETH and 7% in $EsGMX, which is a good way to fully capitalize on the power of compounding offered by the GMX protocol. In the case of GMX we will not be looping farming through other protocols, the yields will be distributed to the $sKTN holders and will be compounded as explained in the paragraph just above.
With the recent arrival of CEX regulations in many countries, the arrival of new users on GMX as well as Arbitrum makes it one of the best players in the DeFi to become the leader of the decentralized perpetual exchange. For this reason, we will begin to unstake $EsGMX at the appropriate time to convert them into $GMX to add a new source of rewards for Kostren's treasury and $KTN stakers.
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