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GLP Leverage - VODKA

GLP Leverage has features of:

  1. 1.
    Multiplied rewards from GLP in terms of ETH real yield
  2. 2.
    Dynamic reward split mechanism that users pay the leverage cost only when they gain

Approach

GLP itself can be minted with multiple assets, including volatile assets like BTC, ETH, etc. Hence, the price of GLP itself will be volatile due to its basket-of-asset nature.
In Vodka Vault, users can choose USDT, USDC, USDC.e, or DAI for their transactions. The vault will convert the amount into USDC.e via Kyberswap to guarantee users the best price when depositing.
In Vodka, leveraging is achieved through borrowing extra funding from USDC.e Lending pool at the cost of reward splitting.

Workflow

Step 1: Users input the deposit amount and choose the desired leverage level (up to 10x).
Step 2: The additional capital required for the leverage strategy is borrowed from the USDC.e lending pool.
Step 3: The borrowed USDC.e is combined with the deposited USDC.e in the GLP Leverage strategy to mint the corresponding GLP tokens on GMX V1.
If user is not depositing USDC.e, the deposits will be swapped to USDC.e via Kyberswap to match the borrowings
Step 4: The "Debt-to-Value (DTV) Monitor" and "Liquidation Monitor" continuously monitor the health of the strategy.
Step 5: When the leveraged positions are closed, the rewards are split to the Redistributor, which is a protocol-owned middleman contract that facilitates the distribution of rewards to USDC.e Lending Pool. See here for more details.

Features

Reward Split based on UR

The Reward Split Ratio will be based on the utilization ratio of the lending vault:
  • From 0-90%: The split ratio will be 30%
  • From 90-95%: The split ratio will increase linearly from 30% to 70%
Harvestable Reward
  • For Leverage users, GLP ETH rewards are harvested by the protocol whenever a user opens/closes a position, or every 4 hours. Rewards can be claimed from the Vaultka page
  • The user’s harvestable reward will already be deducted from the reward split for lenders
  • For Lenders, rewards are distributed whenever it is harvested
Flexible Leverage
Users can employ flexible leverage (up to 10x) based on the amount they deposit in the Vodka vault. The “Manager” will check the availability of the lending vault and match the leverage amount to mint GLP.
Support of Multiple Stablecoins
Users can choose USDT, USDC, USDC.e, or DAI for their transactions. When depositing, the vault will seamlessly convert the amount into USDC.e. This conversion process occurs through Kyberswap, guaranteeing users the best price.