Plutons,
The time has come! We’ve been working overtime over the past weeks to deliver you plvGLP as soon as possible, and now we’re at the finish line. We’re excited to announce that plvGLP, the flagship product for our Plutus Vaults product line is now live!
To begin with, plvGLP will have a 1M supply cap. Farm rewards begin on Monday the 29th of August at 4:00PM UTC, however you can convert your GLP into plvGLP and stake it as of right now in order to be best positioned for when rewards begin. A total of 41,500 PLS in emissions will be directed to the vault for the first month. Please visit our docs for more details on emissions!
As a quick recap, the plvGLP vault is designed to be the most convenient — and most lucrative — staking experience for GLP. plvGLP stakers will earn boosted yield through constantly growing esGMX rewards, PLS emissions, native GLP yield and a share of the exit fees. All of these (except $PLS emissions) are automatically compounded for maximum convenience. The different layers of yield ensure that in nearly all scenarios — even net of fees — plvGLP stakers can expect to earn quite a bit more than in the single-sided GLP vault without ever having to compound manually. For a refresher on all the details, please read our product announcement here.
plvGLP Upgrades
Since our product release announcement, we’ve added some exciting new features to plvGLP that we’ve not previously discussed. Firstly, plvGLP will be interest-bearing in a way where through compounding, 1 plvGLP will always be greater in value than 1 GLP (e.g. 1 plvGLP = 1.2 GLP). This design enables some exciting mechanics for builders and individuals!
plvGLP is a prime candidate to be used as a building block in other protocols due to its inherently growing value without the need to manually compound rewards. Compared to native GLP, where rewards are streamed and require manual actions to compound, using plvGLP is a significant advantage. Additionally, plvGLP is completely permissionless.
Another exciting use case could be loans taken against plvGLP, where the loan is slowly paid off due to the growing value of plvGLP. Last but not least, this design is also most convenient for the end user! No more compounding, simply set and forget. 💪🏻
GLP has exploded in popularity due to its intelligent design, and we’re thrilled to be further improving upon it. As a reminder, this is all net win-win-win, as the GLP used to mint plvGLP are deposited into GMX’s native GLP staking module, with all this resulting in increased yields for users.
Secondly, we’re introducing a change to the way plvGLP’s exit fees work. Originally the design was to take a 2% exit fee when redeeming plvGLP for GLP. This still stands — however, 25% of that 2% (for a total of 0.5% of the position’s size) will now be distributed back to plvGLP stakers. This is an additional mechanism to further distribute more value back to plvGLP users in addition to already offering native GLP yield, PLS emissions, and compounded esGMX yield.
Depositing GLP for plvGLP and staking
To use the product and receive all the benefits outlined above, you must first deposit your GLP for plvGLP at https://plutusdao.io/vaults. As a reminder, our vaults work differently than plsAssets — there are no liquidity pools. This means that you can always redeem your underlying GLP whenever you wish. When redeeming plvGLP for GLP, you are subject to a 2% fee.
When depositing GLP for plvGLP, the deposit will not be 1:1 due to the compounding nature of plvGLP. This means that plvGLP will always be more valuable than GLP as the vault compounds rewards. Naturally this means that when redeeming back to GLP from plvGLP, you will be able to realize the gains from this compounding and will receive more GLP in return.
To begin receiving rewards, you must stake your plvGLP into the farm. To recap, farm rewards begin on Monday the 29th of August at 4:00PM UTC.
Congratulations — you’re now earning the highest possible yield available on your GLP while sitting back and not having to compound your rewards manually!
Moving forward
We’re incredibly excited to be releasing plvGLP today. However, rest assured we’re not laying our foot off the gas — we have exciting news that relates to our governance module execution and bribes headed your way soon. We’re partnering up with one of the best in the business to ensure that our bribing mechanism is resilient and can smoothly handle any and all plsAssets, while being simple and easy to use. 🦋
You should also be on the lookout for further collaboration with GMX and last but not least, SPA implementation is right around the corner. As usual, we appreciate your continued support! 💚🙏🏻
