GMD Protocol on Arbitrum
  • 🟦GMD Protocol Overview
    • GMD Protocol
    • How GMD Protocol Works
    • #RealYield Revenue Sources
    • Earning Strategies
    • GM DAO Voting
  • 💲GMD Tokenomics
    • $GMD Tokenomics
    • Mint and Supply
    • Launch
    • Yield
    • RP for Stakers
    • esGMD
    • esGMD Seed Rounds
  • 💰Delta-Neutral Vaults
    • Delta-Neutral Vaults
    • Working Mechanism
    • Vaults Capabilities
    • Vaults Limit
    • APY and Deposit Fees
    • Vault Migration
  • 👾GMD Delta-Neutral Strategy
    • Market Volatility Risks
    • Pseudo-Delta-Neutral Strategy
    • Delta-Neutral Ratio
    • Manual Rebalancing of Deposits
    • Protocol's GLP Reserve (The Reserve)
  • 🛣️Protocol Roadmap
    • Up-to-date Roadmap
    • Initial Roadmap
  • 🔗Protocol Links
    • Dapp
    • Treasury and Multisig
    • Contracts
    • Audits
    • Socials
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  • Real Yield Revenue Sources
  • Real-Yield APR Sample Calculation
  1. GMD Protocol Overview

#RealYield Revenue Sources

Real Yield Revenue Sources

GMD Protocol will earn Real Yield Revenue in ETH from the following sources:

  • The protocol will compound half of the ETH rewards of GLP from Delta-Neutral Vaults, while the other half will be collected as performance fees/protocol revenue and distributed to $GMD stakers in WETH.

  • $GMD earns WETH rewards from the GLP in GMD Reserve

  • $GMD also earns fees collected through protocol-owned liquidity, which will be converted to WETH and distributed.

Real-Yield APR Sample Calculation

Assuming total single-stake TVL of $1,000,000. $GMD APR will be:

  • At 20% APR from GLP, we compound a part for the Delta-Neutral Vaults. Let's use 50% for this example => 10% compounded. The other half is collected for $GMD Stakers. As a result, $100,000 a year will be collected for $GMD stakers.

  • $200,000 worth of reserve in GLP earns another $40,000 a year.

  • Assume protocol-owned liquidity collects $50,000 a year (an extremely conservative 35% apr on the lp)

  • The team plans to take 30% of total performance fees

=> The total revenue is 100,000 + 40,000 + 50,000 = $190,000 a year

=> GMD$ earns about $133,000 after performance fees. Assuming 10,000 tokens staked at $50, $GMD earns approximately 27% APR. Our treasury is also making ~~ about 8000 - 10000$ weekly.

(We are using extremely conservative numbers for the sake of this calculation only)

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Last updated 2 years ago

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