GLP Vault Mechanics
GLP (GMX Liquidity Provider) is the multi-asset pool that powers GMX V1. When you mint GLP, your assets join a shared pool used by leverage traders. GLP holders are effectively the "house" - when traders lose, GLP value increases; when traders win, GLP value decreases. In aggregate, traders historically lose, making GLP a net-positive yield source. GLP holders earn 70% of all platform fees paid in ETH/AVAX.
GLP Pool Simulator
Adjust pool parameters to see how trader P&L flows to GLP holders. The zero-sum relationship means every dollar traders lose, GLP holders gain.
Token Flow Animation
Watch how assets flow through the GLP ecosystem - from deposit to minting to the trading leverage pool and back.
GLP Composition Breakdown
GLP targets a specific weight for each asset. Fees incentivize depositing underweight tokens and withdrawing overweight ones.
Understanding the GLP Risk Model
Trader losses flow directly into the GLP pool, increasing GLP price. Historically, most leveraged traders lose money - especially in choppy or bearish markets. This is GLP's primary edge: being the "house" in a casino where the odds slightly favor the house.
Trader profits are paid from the GLP pool, decreasing GLP price. In strong trending markets (especially bull runs), profitable long positions can significantly erode GLP value. This is the primary risk of holding GLP - you're short trader skill during trends.
Fee Structure
70% of all fees go to GLP holders (paid in ETH on Arbitrum, AVAX on Avalanche). 30% goes to GMX stakers.