Mechanism

Minting Mechanism

The minting process for GLM provides users with flexibility, enabling deposits in either USDC or any of the covered GM tokens. When users deposit USDC, the pool dynamically mints the most under-weighted token to maintain the target ratio. For GM direct deposits, Vaultka will not incur any additional fees, regardless of the impact on the ratio.

For substantial deposits that could significantly impact pool ratios, if the user opts for USDC deposit, the GLM pool will mint BTC, ETH GM token pools, or all covered GM tokens based on the target ratio, determined by the deposit size.

Deposits size %	<5%	>=5%
Deposit size Amount	-	<200k	>=200k
in USDC	Mint the most under weighted pool	Mint either BTC or ETH pool if their difference is higher than the minting amount. If no, mint 50% BTC 50% ETH	Mint all 4 GMs according to target ratio
in GM token	Deposit into corresponding asset pool	Deposit into the corresponding asset pool	Deposit into the corresponding asset pool

** Deposit fees is 0% for all types of assets

Redemption Mechanism

When redeeming GLM tokens, users have the flexibility to choose between receiving their redemption in either USDC or GM tokens. Opting for a withdrawal in USDC involves swapping the volatile token to USDC upon receipt of the token pairs from GMX. For users preferring GM tokens upon withdrawal, they can specify the desired GM token, with a potential additional fee if the withdrawal impacts the pool ratio and deviates from the target.

Similar to the deposit mechanism, significant withdrawals that may considerably affect pool ratios will be handled with extra measures to prevent substantial deviations from the target ratio.

Withdrawal	<5%	≥5%	>20%
in USDC	Redeem over-weighted pools, and swap to USDC UNI and LINK pool will not be selected for withdrawal No ratio impact fees	Redeem only BTC or ETH pool if their pool difference is larger than the withdrawal amount Otherwise, redeem 50% BTC and 50% ETH, and swap BTC ETH both in USDC.	Redeem all pools according to the current ratio No maximum withdraw
in GM	Ratio impact fees will be charged depending on whether the pool is under or over weighted After withdrawal, each pool’s tvl ratio should not be lower than poolMinimumRatio	Ratio impact fees will be charged depending on whether the pool is under or over weighted After withdrawal, each pool’s tvl ratio should not be lower than poolMinimumRatio Each withdrawal is limited to one GM pair only	Ratio impact fees will be charged depending on whether the pool is under or over weighted After withdrawal, each pool’s tvl ratio should not be lower than poolMinimumRatio Each withdrawal is limited to one GM pair only

Withdrawal Threshold

To prevent a substantial depletion of a specific asset in the pool due to large withdrawals of GM tokens, a withdrawal threshold will be implemented. This threshold will adhere to a minimum pool ratio, determining the maximum withdrawal limit for a particular pool.

Pool	Target ratio	poolMinimumRatio
BTC/USDC	40%	20%
ETH/USDC	40%	20%
ARB/USDC	10%	5%
LINK/USDC	10%	5%