Working Mechanism

How it works

All vaults are going to be auto-compounded in real-time.

Vault Stakers will receive gTOKENS representing their positions in the vault. For your stake positions for USDC, ETH, and BTC respectively, you will receive gUSDC, gETH, and gBTC as receipt tokens representing your original positions.

GEM tokens appreciate in value at their APY rate (similar to the mechanism of aUST). These tokens can then be used to form Uniswap V3 liquidity to allow for instant entering/leaving the vaults. GEM encourages our stakers to do this to earn extra trading fees from Uniswap with minimal to 0 impermanent loss.

Withdraw Windows

There will be deposit windows and withdraw windows for our stakers. Once the vaults are officially launched, withdrawals will be opened for 12 hours every Sunday UTC.

Since GLP minting activities through compounding/depositing will prevent users to redeem and withdraw from the vaults, and there is a 15-minute wait period to redeem GLP, so it is not possible to open withdrawals at all time.

GEMTOKENS Usage

Nevertheless, through gUSDC-USDC, gETH-ETH, gBTC-BTC Uniswap V3 liquidity, stakers can enter/leave at anytime without the need to wait for the 12-hour period every Sunday to withdraw from the Vault.

Over the long term, EsGMX earned will be compounded into the vault to earn more ETH rewards