《Twitter🧵》
1/17
❓What's better than earning the already juicy $GLP yield on @GMX_IO?
💡Earn more yield on top w/ 0 liquidation risks!
❓How?
💡By depositing into @rage_trade's 80/20 recycled GMX LP vault
What⁉🤔
I read the doc so you don't have to😁, my tldr👇
2/17
In this🧵
📌What is @rage_trade in a nutshell?
📌What problems is it trying to solve? and how?
📌Advantages of Rage's unique design
📌👀Coming 🔜
📌Possible⚠Risks
3/17
📌What is @rage_trade in a nutshell?
@rage_trade is a ETH perp swap, up to 10x leverage powered by UNI v3;
however, what's most unique about it is that it has 👀huge ambitions. It wants to be:
✅the most Liquid,
✅composable,
✅and the first ETH omnichain perp swap
4/17
❓How will @rage_trade accomplish the above👆
💡Primarily through its features of:
1️⃣Omnichain 'recycled' liquidity
2️⃣80/20 vault LP mechanism
Let's explore each of the above features
5/17
1️⃣Omnichain 'recycled' liquidity:
One of the major challenges faced by perp and structured products in crypto is the lack of liquidity because of how fragmented liquidity is across many chains and protocols.
6/17
@rage_trade plans to solve the liquidity problems through bridging ETH+USD LP shares from protocols on any chains that are @LayerZero_Labs compatible and then ‘recycle’ & unify them into their 80-20 vaults👇
7/17
2️⃣80/20vault LP mechanism
The LP shares that come into @rage_trade will be divided into:
🔸(At least)80% in Yield Protocol Pool (continues to earn LP💰from external protocols)
🔸(At most) 20% to provide @rage_trade perp concentrated liquidity(earns additional Rage fees)
8/17
The 80/20 vaults will update LP range & rebalance pools daily, and if necessary reset when there’s more than 20% of vault value in Rage perp position in order to manage risks 👇
For detailed info, check the doc
🔗https://docs.rage.trade/operations
9/17
📌Advantages of Rage's unique design
1️⃣Capital Efficiency with 0 liquidation risks:
Normally for users to generate additional yield for their LP positions, they must borrow against their LP tokens and redeploy borrowed assets; however, this action carries liquidation risks.
10/17
@rage_trade natively accepts LP share tokens as collaterals with 0 liquidation risks.
🚨 Leveraged perp trading still carries liquidation risks🚨
11/17
💡In the case of the Rage 80/20 @GMX_IO vault LP,
if you deposit $GLP, you will earn💰yield from both @GMX_IO & @rage_trade，and don’t have to worry about liquidations🦾
12/17
2️⃣Combining ETH+USD liquidity across multiple protocols and chains will create ultra deep liquidity, which benefits traders and also allows for protocols (ie Options protocol products like @dopex_io's Atlantics Straddles)and whales to delta hedge properly using perps.
13/17
3️⃣The 'Forward Guidance' mechanism will allow Rage's multisig to manually match its funding rates to CEX's rates
💡Imaging any stablecoin protocols, for example @fraxfinance and @UXDProtocol being able to open delta neutral positions using Rage's ETH perps
4️⃣Also👀👇
14/17
📌More to come🔜
🔸Automated $GLP delta neutral LP'ing
🔸Other Recycled LP vaults such as SLP, Uniswap, Curve Tricrypto, etc
🔸Omnichain vaults compatible with protocols like @CurveFinance，@AaveAave, @balancer and @SushiSwap
15/17
📌Possible⚠risks
🔸Rage vaults can still underperform b/c of IL. Better for bear🐻 & crab🦀 markets (in $GLP's case)
🔸Arbitrum (where the vaults and @rage_trade platform live) down time can affect yield
🔸Smart contract risks because it's a brand new protocol
🔸Omnichain risks
16/17
If you'd like to try out @rage_trade, the testnet is live with test token faucet right on the app itself. UI is great👍
If you want to understand more about the mechanisms behind the scene, join Discord and chat with the team directly
Discord🔗https://discord.com/invite/KwRdc7jKeQ
17/17
@rage_trade is innovative with ambitious plans. I'm super excited to follow their development.
Sneak peak article on GMX Recycled Liquidity Vault: