Amplify the base yield on GLP by up to ~ 1.5X without credit or principal risk
Olive's GLP Vault
Working mechanism of the GLP Vault
- Once funds are deposited in the GLP Vault, we use Beefy to automatically convert the ETH and esGMX rewards on GLP to even more GLP.
- The yields earned on GLP deposited in Beefy are used to gain exposure to structured products such as range-accrual, twin-win, ascent, summit, digital, highland etc.
- The critical thing to note is Olive only uses the yield component on GLP to run these strategies, thus ensuring users' funds are never exposed to credit or principal risk.
- The yields generated from these strategies are automatically reinvested into the GLP vault, generating auto-compounding returns.
- The last cycle's yield is treated as principal in the current cycle, which means it will not be used to run the strategies, thereby ensuring incremental principal protection.
- The best part is there is no lock-in. You can invest or withdraw anytime. However, if you withdraw between cycles, you will lose out on the yields accrued at the cycle's end. Cycles run from Monday to Monday, 1 PM UTC.
GLP APR on Beefy as of 22nd February 2023
- GLP token was earning 21.24% APR on Beefy Finance as of Wednesday, 22nd February 2023. We consider the APR on Beefy as the base yield. Beefy updates the GLP APR every Wednesday.
- Suppose a user invests 1000 GLP tokens into Olive GLP Vault
- Olive harvest 4.07 GLP (= 1000 GLP x 21.24% yield / 52.1429 weeks) and invest them in structured products
- Olive has historically amplified Beefy yield by ~1.33X on a cycle by cycles basis, which grows to ~1.5X with auto-compounding
- Olive receives 5.417 GLP (= 4.07 GLP x 1.33 amplification factor) from its investment in the structured products and re-invests in the vault to compound
- GLP APR on Beefy: 21.24% (as of Feb 22nd, 2023)
- GLP Yield on Olive = 37.54% = (1 + 5.417 / 1000) ^ 52.1429 - 1 + 5%)
Whether the GLP base APR moves up or down on Wednesdays, with our GLP Vault, you can be sure you will earn the highest real yields on GLP in DeFi with no - credit risk, principal risk or lock-in.
If you wish to partner with us on the Principal Protected Vaults, please submit a partnership proposal on our Discord. We will get back to you at the earliest.