How to Provide GLP Liquidity
GLP is GMX's liquidity token. GLP holders provide liquidity for traders and earn 70% of platform fees plus esGMX rewards.
What is GLP?
GLP is an index of assets:
- 50% stablecoins (USDC, USDT, DAI)
- 25% ETH
- 25% BTC + others
GLP holders are the counterparty to traders.
GLP Returns
| Source | Typical APY |
|---|---|
| . . . . | . . . . . . - |
| Trading Fees | 10-20% |
| esGMX Rewards | 5-10% |
| Total | 15-30% |
Risk Considerations
- Traders winning = GLP loses
- Traders losing = GLP wins
- Historically profitable for GLP
- Asset composition changes
. -
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Step-by-Step Instructions
Understand GLP Mechanics
GLP holders profit when traders lose and vice versa. Historically, GLP has been net profitable.
Tips
- ✓Review historical GLP performance
- ✓Understand you are taking the other side of trades
Warnings
- ⚠During strong trends, GLP can underperform
Bridge to Arbitrum
Move assets to Arbitrum if not already there. GLP is on Arbitrum and Avalanche.
Tips
- ✓ETH, USDC, BTC derivatives all work
Go to GMX Earn
Visit app.gmx.io, click Earn tab, then select GLP.
Tips
- ✓Check current APY and composition
Buy GLP
Select asset to deposit and amount. Review the GLP you will receive.
Tips
- ✓Buying with underweight assets gives bonus
- ✓Buying with overweight assets has fee
Warnings
- ⚠High fees during volatile markets
Confirm Purchase
Approve token if needed, then confirm the GLP purchase transaction.
Tips
- ✓GLP is automatically staked
- ✓Start earning immediately
Monitor Earnings
Watch ETH/AVAX fees and esGMX rewards accumulate on the Earn page.
Tips
- ✓Claim regularly or let compound
- ✓esGMX can be staked or vested
Manage esGMX Rewards
Choose to stake esGMX for more rewards or vest to GMX over 1 year.
Tips
- ✓Staking compounds returns
- ✓Vesting converts to liquid GMX