Dolomite Launches Full Support for PlutusDAO’s plvGLP
Dolomite now fully supports plvGLP as a collateral asset, allowing users to borrow against their plvGLP while still earning compounded GLP yield and staking rewards, opening the door for advanced hedging, looping, and diversified farming strategies.
We are excited to announce our full integration of plvGLP! 🎉
This will be our second full integration of an asset after our launch of full support for GLP. With this full integration, plvGLP holders can borrow against their plvGLP while also staking and earning PLS rewards.
What is Dolomite?
Dolomite is a decentralized money market and DEX built on Arbitrum — essentially a protocol supporting lending, borrowing, trading, margin, and hedging. Dolomite’s protocol offers greater capital efficiency and broader asset support than other protocols are capable of. The flexibility of Dolomite’s protocol is exemplified in its ability to support plvGLP as a collateral asset while passing on all rewards and yield to users.
What is plvGLP?
plvGLP is a GLP vault launched by PlutusDAO in August of 2022, designed to be the most convenient — and most lucrative — staking experience for GLP. plvGLP stakers earn boosted yield through constantly growing esGMX rewards (no longer active), PLS emissions, native GLP yield and a share of the exit fees.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.
- GLP can be deposited to mint plvGLP at any time.
- Exiting plvGLP is subject to a 2% fee (there’s no liquidity pool).
- esGMX rewards are locked under Plutus and automatically compounded. This results in constantly increased yields for all pool participants.
- Plutus will take a 10% fee on GLP yield.
- Stake plvGLP to earn PLS emissions, ensuring that yields are always higher than the native GLP pool.
Read PlutusDAO’s full plvGLP launch announcement for more information.
What’s unique about Dolomite’s integration of plvGLP?
Dolomite is the first to allow you to borrow against your plvGLP while staking it. This allows you to maximize what you earn on your plvGLP while still using it to perform financial strategies such as looping or hedging. Whether you’re a small plvGLP holder or an advanced trader using plvGLP to get the most from your strategies, this maximizing of earnings combined with Dolomite’s interest rate model that prioritizes low borrow rates makes Dolomite the best venue for plvGLP.
What can you do with plvGLP on Dolomite?
You can now deposit your plvGLP to Dolomite, where you’ll be able to use it as collateral for loans while continuing to earn compounded GLP yield as well as plvGLP staking rewards in the form of PlutusDAO’s PLS token. You will still continue to earn yield and staking rewards even if your plvGLP is being used as a collateral for a loan!
Using plvGLP as collateral for a loan allows you to execute any number of strategies. A popular strategy is to borrow USDC, then use that USDC to acquire more plvGLP. This in essence increases plvGLP leverage, and as a result multiplies the yield earned. This “looping” can be repeated to increase the leverage and yield to a level that fits your personal risk tolerance.
Another common strategy is to borrow component assets of GLP such as ETH and WBTC and sell those to USDC, hedging the price volatility of GLP while still earning the majority of the yield. This is a good strategy for those looking to minimize risk while still earning the strong yield that GLP tends to generate.
You can read more about these strategies in our GLP launch article.
How to use plvGLP on Dolomite
Begin by depositing your plvGLP to Dolomite on the Balances page. Once deposited, you will see your available plvGLP balance, which can be used for borrowing as well as a couple of features unique to plvGLP listed below.
Staking your plvGLP and claiming PLS rewards works exactly as it does on PlutusDAO’s site. Click the “Staking” button shown below your plvGLP balance to view the plvGLP staking window. It will show you the total amount of plvGLP you have deposited to Dolomite, how much of that plvGLP is staked, and how much is yet to be staked. You can then stake or unstake that plvGLP. Even after staking it, the plvGLP will be available to be used as collateral for borrowing.
Claiming PLS rewards from plvGLP staking also works just as it does on PlutusDAO’s site. Click the “Claim rewards” button shown below your plvGLP balance to view the plvGLP rewards window. This window gives some information about plvGLP, including a breakdown of the APR, the total plvGLP TVL, the amount of plvGLP you currently have staked, and the amount of PLS rewards you currently have pending. With one click you can claim your PLS rewards, which go right to your wallet.
On the Borrow page you can borrow against your plvGLP even while it earns yield and rewards. Your plvGLP can act as collateral in much the same way as the other listed assets on Dolomite — deposit plvGLP as collateral, and then borrow as much as you’d like of other assets up to the LTV limit. You can have as many separate isolated borrow positions as you’d like, each with its own health factor, assets being borrowed, and risk. Because each position is isolated from the others, one borrow position can be liquidated without the others being affected.
Conclusion
This is an exciting step forward for us at Dolomite, and one that we know the Dolomite and PlutusDAO communities will love.
But this is still just the beginning. Dolomite aims to unify the DeFi ecosystem as well as cooperate with even more protocols that want to increase the utility of their ecosystem assets while enabling greater capital efficiency. We have plenty of other assets, integrations, and partnerships in the works that we can’t wait to share that will help unlock the dormant capital in DeFi.
You can learn more about Dolomite and try it out for yourself at dolomite.io.
We would love to have you along with us for this journey, so come join the community on Discord or on Twitter.
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