In this AMA, host [Arien Weaver]( of [Arable Protocol]( speaks with Dylan of [Yield Yak]( & [coinflipcanada]( of [GMX]( to discuss possibilities of things to do with Arable, GMX & Yield, how the new founded strategy works & more.
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Read our notes below to learn more
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**GMX’s background**
* An onchain perpetual futures exchange deployed on [Avalanche]( & [Arbitrum](
* Enabling leverage or margin trading of a variety of crypto assets like $AVAX, $BTC & $ETH.
* Entire system is powered by oracle pricing from a group of leading centralized exchanges which gives clear & transparent pricing for all execution of trades.
* All assets are backed 1:1 & are verifiable onchain.
* GLP is a liquidity pool that holds assets allowing users to counterparty trade & to do so, users need to pay a reasonable fee to both open & closed positions.
* Currently working with a lot of partners to integrate GMX in order to allow people to do capital efficient trading but also hedging solutions.
* Allows DeFi strategies to open more complex delta neutral or directional strategies that can be built on top of it.
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**Yield Yak’s background**
* Building tools for DeFi users on Avalanche.
* Auto compounding strategies & farms are the most popular products.
* DEX aggregator.
* Liquid staking.
* First protocol to build a GLP vault.
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**Landscape of GLP vault & Yield Yak vault**
* One of GMX’s novel innovations is the concept of LP token taking the other side of the trade & earning fees, & being a basket of assets that provide liquidity in a really transparent way.
* The rewards are coming from real yield which has been the real strong narrative lately.
* GLP yield is coming from trading fees.
* 70% of GMX’s trading fees goes to Avalanche blockchain & GLP liquidity providers then yields are compounded back into GLP & Yield Yak vault.
* Another interesting component is depending on weekly rewards issued on GLP, if it’s below 20% threshold, additional escrow GMX gets issued to GLP stakers to top up their rewards.
* There’s a build up of gap between what is earning in the vault vs. what users can do on their own.
* Yield Yak vault has 1000 esGMX that’s been staked & earning rewards for depositors.
* Arable’s integration to make it as collateral is a strong collateral asset because it’s made up of about 50% stablecoins & resistant to current market fluctuations.
* GLP vault has completed a 3-week audit with independent auditors.
**Alpha reveals**
* Yield Yak is currently in the process of working on a treasury swap with GMX.
* Treasury swap will bolster the GLP Vault for Yield Yak by transferring up to $100,000 in $YAK tokens for up to $100,000 esGMX tokens that would be immediately deployed towards the GLP vault & extra earning boosted rewards for depositors.
* Treasury swap proposal is subject to voting for now.
* Yield Yak dev team is working on, which should be released around next week or two, is a novel upgrade to Yak swap to their DEX aggregator that also works as a tool that could be integrated into any front end that takes the process of minting & redeeming GLP.
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**How to get involved with GLP**
* GLP can be purchased or redeemed with any assets in the pool.
* There’s a target breakdown of assets that GMX is aiming towards.
* After depositing GLP into the GLP vault, users will receive a receipt token which will enable them to head over to Arable & use that Yield Yak GLP as collateral then take out a stablecoin loan against that collateral.
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**Q&A**
***Q: Why is there a cooldown timer for buying or depositing GLP?***
* GMX is releasing an update either tomorrow or the next few days to remove the cooldown timer.
* Served as a protection mechanism to effectively restrict people from being able to flash loan extremely large balances or oracle manipulations.
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