For months now, RedStone has been delivering a GLP price feed to dApps like DeltaPrime. Today, GMX and RedStone launch a cooperation around the early adoption of GMX V2 LP tokens as collateral by DeFi protocols. The aim is to add additional value to the new V2 version of the leading perps exchange.
What are GMX and GLP?
GMX is a leading permissionless decentralized perpetual exchange on Arbitrum and Avalanche. Traders on the exchange benefit from deep liquidity reduced liquidation risks and transparent pricing. GMX has worked collaboratively to create a robust ecosystem on both blockchains it’s deployed on, sporting over 100 DeFi integrations.
With GMX V2 – currently on Testnet, and launching soon – any asset with a Chainlink price feed can be transacted efficiently on the exchange. Additionally, order execution is virtually guaranteed and fees are lowered, further optimizing the on-chain trading experience.
GLP is GMX’s multi-asset liquidity pool, which facilitates all swaps and leverage trading in V1 of the protocol. All liquidity in GLP is user-contributed; there are no external market makers involved. You can mint GLP tokens with any index asset and redeem your GLP for any index asset. The minting and redemption prices depend on the total worth of assets in the index, including profits and losses from open positions, divided by the GLP supply.
On Arbitrum, GLP token holders receive 70% of platform fees in ETH and on Avalanche, GLP token holders receive the same share of protocol fees in AVAX.
DeltaPrime leverages the growth of GMX with GLP feed
GMX is Avalanche’s main perpetual futures platform. Its TVL has grown immensely over the past 18 months. This is mainly because the exchange is easy to use and caters to the needs of all traders and investors, no matter the amount of risk they want to take.
Super risky? Take anywhere between 1x – 50x leverage on your trades.
Not so risky? Provide liquidity through minting the GLP token. In doing so, you are holding a basket of AVAX, ETH, BTC and ~50% stablecoins, while simultaneously earning 70% of the protocol fees GMX earns on Avalanche!
On DeltaPrime, you can use your GLP as collateral to borrow against: a significant innovation. Additionally, you can mint it straight from your Prime Account, fully cross-margin.
What are the benefits of investing in GLP through DeltaPrime?
- Deposit GLP into DeltaPrime and borrow against your GLP.
- Mint GLP against (LP-)tokens in your Prime Account.
- Farm multiplied GLP with partners like Yield Yak within your Prime Account.
“RedStone has been a valuable partner in growing usage of GLP as a collateral asset within DeFi, their integration with DeltaPrime is a perfect use case here. Now, our focus is on V2 launch, which will bring even more utility with GM tokens. By introducing them to DeFi protocols, RedStone can really make a difference.”
said Coinflipcanada, GMX Core Contributor.
What role do RedStone Oracles play here?
RedStone provides a precise real-time valuation for GLP tokens. This enables over- and undercollateralized lending protocols such as DeltaPrime to bring their liquidity to GMX building a capital-efficient ecosystem with lower slippage in-between trades.
DeltaPrime needs real-time price data to allow the protocol to provide secure undercollateralized loans for its users. The precision of the data is of utmost importance here. Without it, the collateral price would not be represented accurately, which could put DeltaPrime’s liquidity providers’ money at risk. To avoid deficient debt creation, based on RedStone’s pricing data, Delta Prime calculates Health Score – a parameter which tells the protocol when to liquidate its user’s positions and give the tokens back to its LPs.
The RedStone X model is designed to improve the efficiency and accuracy of oracle data feeds. This model allows for multiple data sources to be aggregated, creating a more reliable and precise price feed. It’s a robust solution that enhances the security of a new wave of super-efficient DeFi projects, ensuring safer, more dependable undercollateralized lending operations.
“Our infrastructure is adjusted to swiftly add LP tokens, hence GLP and V2 GM tokens are a perfect fit. We facilitate the growth of the ecosystem on top of GMX and keep expanding the RedStone X model, which offers almost zero latency for dApps.”
said Jakub Wojciechowski, RedStone Founder & CEO.
Building upon the success of its current oracle services, RedStone is planning to extend its support to GM tokens, the fundamental assets underpinning GMX V2. This strategic expansion aims to facilitate the integration of GM tokens into a wider range of DeFi applications such as vaults and lending platforms. By providing an accurate, real-time valuation of $GM tokens, RedStone Oracles will enable these platforms to safely and efficiently manage their financial operations, enhancing the overall robustness and reliability of the GMX V2 ecosystem.
GMX is a permissionless, decentralized exchange protocol that provides a capital-efficient on-chain solution for both hedging and taking leveraged exposure to leading cryptocurrencies including BTC, ETH, and AVAX.
RedStone is revolutionizing the Oracles industry by implementing novel modular design and 3 tailor-made data consumption models. You can build the new generation of DeFi & Web3 protocols based on RedStone’s versatile data offering of long-tail, Lp, Ecosystem-native tokens, as well as Real World Data and custom feeds.