At Seashell, our goal is to create a simple, smart, effective portal into DeFi. One of our first products, is a purpose-built tool for the GMX community, to maximize rewards on their GMX LP position. The GMX community refers to community members as Blueberries, so we found it fitting to name this product Blueberry Vaults.
What is GMX and why are we choosing to build for it?
GMX is a decentralized spot and perpetual exchange built on Arbitrum. Community is everything in DeFi, and GMX has a vibrant and active community. The same is also true for Arbitrum, the layer 2 scaling solution on Ethereum that GMX is built on. We’re creating a series of products that can help this community simplify and automate their DeFi experience.
Furthermore, GMX on Arbitrum has had huge success, growing to over $550 million in Total Value Locked (TVL) since launching in 2021. The healthy and sustained growth of GMX signaled to our team that this was a solid foundation to build our first portals into DeFi. See the Blueberry Vaults here.
What is GLP and why do I need it for the Blueberry Vaults?
The LP tokens for GMX are called GLP, but they work slightly differently (in a 🧠 way) from normal LP tokens.
Many of the trades that take place on GMX are leveraged, and this leverage is possible through liquidity added within the GMX platform. Those who provide this liquidity receive GLP tokens that represent their contribution to the liquidity pool. By providing liquidity, GLP holders receive ETH rewards from swaps and leveraged trading.
Within the Blueberry Vaults, GLP holders can use the GLP Non-Leveraged Vault to automatically compound their ETH rewards back into GLP, creating a larger position and more yield potential. Additionally there is a new GLP 3x Leveraged Vault option to further maximize your rewards (as well as an accompanying USDC Vault for liquidity providers). These Blueberry Vaults let GLP holders achieve a higher APR through fee generation than they would receive if they were to only hold GLP on GMX.
How do I get GLP?
First you need an Arbitrum wallet since GMX is built on Arbitrum. The following steps are for Metamask users, but the steps will be similar for other common wallets such as Rainbow wallet. If you do not have a crypto wallet, Metamask is a popular starting choice.
Here’s a video link that covers the steps below and provides a walk through of how to start using Seashell’s Blueberry Vaults.
- If you have a Metamask already, you can simply go to our Blueberry Vault Dapp and click “Connect wallet”.
2. In the “Connect wallet” popup, choose Metamask.
3. You will then be asked to add the Arbitrum network to your Metamask. Click “Approve.
Then, you will need to 1-Click Zap OR Bridge Ethereum to Arbitrum in order to buy GLP:
4. For the 1-Click Zap using LiFi, click the Easy swap button on our Blueberry Vaults page and choose the origin chain and asset and destination chain and asset (defaults to USDC on Arbitrum). Note that this can be used to zap into any GLP index asset on Arbitrum, not just USDC.
Enter the amount you would like to swap, review the swap, and approve.
5. If instead you want to bridge your assets yourself, go to the official Arbitrum bridge: https://bridge.arbitrum.io. Choose how much Ethereum you would like to bridge. If you do not have Ethereum, you will need to buy Ethereum on an exchange. (Ethereum on Arbitrum is needed to pay gas fees. Additionally, if you would like to purchase GLP with Ethereum, you may want to consider bridging more Ethereum at this point.)
6. Once you have bridged Ethereum to Arbitrum (may take up to 15 minutes), then go to https://app.gmx.io/#/buy_glp. Click “Connect Wallet”
7. In the popup, choose your wallet of choice.
8. On the right side, enter the amount and type of token you’d like to use to buy GLP, you will see the button “Buy GLP”. Click the button to complete the purchase. (Be sure to leave some Ethereum in your wallet to pay for gas fees or you’ll have to bridge more over 😅).
9. To see your GLP position in your Wallet, you may need to click “import token” from within your wallet and enter the Staked GLP token address (Arbitrum): 0x1aDDD80E6039594eE970E5872D247bf0414C8903 which can be found in GMX’s official documentation: https://gmxio.gitbook.io/gmx/glp
You can now deposit your GLP into one or more of the Blueberry Vaults to maximize your rewards:
10. With your newly purchased GLP, go to https://app.seashell.com/vaults
11. Click “Connect Wallet” at the top right corner (your wallet may already be connected if you followed steps 1–4).
12. Click the “arrow” button on the right for the vault you would like to use. You can choose between Leveraged and Non-Leveraged. You will then see the ability to “Deposit” or “Withdraw”.
13. Enter how much GLP you would like to deposit into the vault. You can click “Max” if you would like to deposit all of your GLP.
14. Click “Deposit”.
15. You will be asked to approve the transaction in your wallet. Once you approve the transaction, you should now see that your GLP is deposited and yielding.
That’s it! You are now compounding your rewards back into GLP and maximizing your APR. Everything is automated from here so you are all done.
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