Today We want to talk about one of the best DeFi projects. It is a decentralized exchange GMX. In this case, we are interested in the GLP liquidity pool, which brings good passive income. There are 2 pools on the exchange in different networks, in the Arbitrum network and the Avalanche Network. The composition of the pools, in principle, is approximately the same 50% USDC, 20% Bitcoin, 20% Ethereum, and a few different altcoins. These pools are created to finance traders' transactions, including margin ones. 70% of the income is distributed among the pool members. The pool income floats depending on the market volatility. When the markets are in a frenzy, the quantity transactions increases sharply, respectively, the pool income increases up to 40%. When the market rests pool income is reduced to 20%.
The average annual return is about 30%. There is a risk of smart contract hacking. In our opinion, quite an acceptable combination of risk-return. clear design, and from which the income is paid.
It’s important to remember that this article is not financial advice.