📊GEM Reserve

It is too complicated/impossible to completely and perfectly hedge against the volatility of the cryptocurrency market, as the aforementioned factors are too unpredictable for any model. Even the most sophisticated strategies, such as employing shorts/AAVE borrowing, have shown to be effective, but never perfect.

Moreover, the volatility has been shown in favor of $GLP favor as traders' loss has outweighted other factors so far. Therefore, instead of trying to eliminate the volatility, we decided to create a reserve to absorb it with the introduction of $GEM Reserve with the following benefits:

• $GEM will absorb the risk of single-staking vaults being underperformed due to impermanent loss.

• $GEM will also gain the $GLP's profits from traders' losses

• Based on the historical data of GLP's performance, $GEM reserve is significantly more likely to financially benefit from the volatility.

*Note: While $GEM has to absorb the vault’s risk of impermanent loss, it also benefits from GMX traders' losses. Simply put, $GEM is designed to take on more risks toward the protocol while obtaining more benefits and rewards for our users. $GEM also earns #REALYIELD from platform revenue and from the reserve.