GLP Wars On Avalanche

    The GLP war refers to the competition between liquidity providers on the GMX platform to acquire as many GLP tokens as possible. This dashboard offers a comprehensive and in-depth analysis of the GLP wars on Avalanche, including which protocols have been most effective in attracting GLP users and how the competition is evolving.

    GLP Wars

    What is GMX?

    GMX is a decentralized spot and perpetual exchange that offers low swap fees and zero price impact trades. It features a unique multi-asset pool that earns fees for liquidity providers from market making, swap fees, and leverage trading. GMX offers leverage of up to 50x and settles profits in USDC or the pair's other token.

    What is GLP?

    GLP is a Liquidity Provider's token for providing liquidity to traders on GMX. It is a basket of assets used for swaps and leverage trading, typically made up of 50% stablecoins and 50% blue-chip cryptocurrencies. GLP holders earn escrowed GMX rewards and 70% of platform fees distributed in AVAX. The fees are based on the number of keepers after deducting network costs, with an average APR of around 25-50%. GLP is network-specific and not transferable between networks.

    GLP Wars

    The GLP war on Avalanche refers to the competition between liquidity providers on the GMX platform to acquire as many GLP tokens as possible. As more liquidity providers enter the market, the price of GLP tokens rises, making it more difficult for new providers to acquire them. This has led to various strategies being employed by liquidity providers, such as leveraging their positions and swapping assets to acquire more GLP tokens. The ultimate goal is to become a top GLP holder and earn a larger share of the platform fees and rewards. This competition is even more extensive among top DeFi protocols and whales, as DeFi protocols absorb GLPs through GLP stakers.

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    GMD Protocol is a platform that optimizes and aggregates yields from an index pool or an LP to its constituent individual assets using delta-neutral or pseudo-delta-neutral strategies. It is built on top of existing applications and GMD's reserve token, initially on Arbitrum and now extended to Avalanche. GMX/GLP primarily operates on Arbitrum One but has high daily volume on Avalanche as well.

    GMD's products on Avalanche are single-stake AVAX, BTC.b, WETH, USDC vaults built on top of GMX and GLP. GMD's reserve earns yield from underlying backing $GLP and all revenue from single-stake vaults. In the future, GMD plans to leverage derivative platforms through smart vaults and arbitrage pegged assets.

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    Yield Yak is a community-driven DeFi farming tool on the Avalanche network that allows users to increase their yield. The platform automatically compounds farming rewards for users, and each farm is a collection of deposits made by Yield Yak users that reinvest all profits, benefiting everyone's contributions.

    Avalanche Rush, a liquidity mining program by the Avalanche Foundation to grow the Avalanche Ecosystem, supported Yield Yak's GLP vault in AVAX rewards.

    Yield Yak's GLP strategy continuously stakes esGMX in perpetuity to maximize GLP rewards for all depositors. The AVAX rewards are compounded back into GLP, and the earned esGMX is staked to increase total vault rewards.

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    DeltaPrime is a decentralized platform that facilitates borrowing and investing. It allows users to lend and invest funds across popular Avalanche protocols, with a minimum collateral ratio of 20%.

    The Prime Account is a visual representation of a user's Dedicated Smart Contract, holding their full portfolio, including borrowed funds and collateral.

    DeltaPrime offers a GLP pool, where users can deposit and borrow GLP. Through integration with Yield Yak, GPL depositors can stake their assets and participate in autocompounding farming.

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    Yeti Finance is a lending protocol on Avalanche that allows users to borrow up to 21x against their portfolio of LP tokens, staked assets, and yield-bearing stablecoins in a single debt position.

    The integration of GLP/GMX into Yeti Finance is a new development that allows GMX's GLP to be used as collateral. GLP has a slightly different process for depositing compared to other assets, requiring users to first mint the GLP vault token before depositing it into their trove.

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    SteadeFi is a decentralized finance (DeFi) platform that aims to provide users with a stable and predictable investment experience. The platform is built on top of the Avalanche blockchain and utilizes smart contracts to automate various financial functions.

    SteadeFi offers the 3x Long GLP Vault that allows users to gain leveraged exposure to the price of GLP. By depositing AVAX into the vault, users receive a 3x leveraged position in GLP, meaning that for every 1% increase in the price of GLP, the user's position will increase by 3%.

    This dashboard offers an overview of the GLP wars across several main platforms on Avalanche: GMD Protocol, Yield Yak, SteadeFi, Delta Prime, and Yeti Finance.

    For a description of the protocols, please see the boxes below.

    In the "GLP on Avalanche" section, general metrics and charts related to GLP and FeeGLP on Avalanche are presented. It also compares high-level metrics related to GLP and fGLP on two chains. In the "GLP Wars" section, a comprehensive comparative analysis of the GLP wars is displayed.

    Overall, the dashboard provides detailed and significant insights into the GLP wars on Avalanche.

    Metrics

    • High-level description of the protocols included
    • Total FeeGLP circulating
    • Combined total GLP value
    • Combined total amount of GLP
    • Total GLP holders
    • Combined total users
    • Combined percentage of total GLP

    Graphs

    • Amount of feeGLP by protocol
    • Market share of GLP per protocol
    • Value of GLP per protocol
    • Comparison of GLP value
    • GLP vaults inflow
    • GLP daily yield
    • GLP rewards per protocol
    • Staking comparison
    • Withdrawal comparison
    Methods
    Introduction
    Protocols
    References/ Protocols
    Acknowledgements
    About the Author

    GMD Protocol 📚 🔗

    Yield Yak 📚 🔗

    Yeti finance 📚 🔗

    SteadeFi 📚 🔗

    Delta Prime 📚 🔗

    This dashboard is largely based on a previously created dashboard about GLP Wars on Avalanche by the author and GLP Wars on Arbitrum by defimochi both using Dune tables.

    The goal of this dashboard is to combine the two previous dashboards and utilize Flipside tables. Additionally, many of the queries have been improved in this new dashboard.

    Please note that this dashboard is still under development, and I plan to add more platforms and visualizations in the future. Your feedback and comments are welcome.

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