Zaps
Last updated
DeltaPrime
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... and your position is there.
With Zaps, you can set up a new strategy. Quick and simple. Zaps simplify the Prime Account for beginning users. Today, Zaps are confined to leveraged trades, and the migration from GMX v1 to GMX v2 positions. In the future, Zaps will allow for isolated strategies. Isolated strategies can have (significantly) higher leverage for positions.
Currently, four zaps are available:
As the name implies, these zaps borrow and swap an asset for another in one click, resulting in a leveraged position. As the platform automatically puts the position in your cross-margin Prime Account, there is no need to specify the amount of leverage. You only have to determine what asset you want to borrow, what to swap it for, and how much of that asset you wish to use.
When GMX transitioned from v1 to v2, many users had to readjust their positions from GLP (v1) to GM (v2). This Zap smoothens this readjustment process, allowing for easy migration.
Create a new Prime Account (PA) is only visible for those who, you guessed it, don't have a Prime Account. While the process of creating a PA isn't particularly complex, this gives a clear "start here" button to DeltaPrime.
The first Zaps to be added in addition to the Long / Short Zaps will be:
This Zap replicates an Aave loan with the option to use your collateral in liquidity pools. Say you want to borrow $50K USDC against your $100K BTC. This Zap will:
Deposit $50K BTC into your Prime Account
Borrow and swap $50K USDC for BTC in the Prime Account
By swapping your remaining $50K BTC to USDC, you now have $100K BTC in your Prime Account to use in DeFi protocols, while also having $50K USDC to spend on the expenditures of life.
Same token exposure, more utility.
This strategy is not restricted to GLP and can be used for any perpetual derivative LP token (eg. LLP)
A major reason for the GLP hedge's popularity is that the 70% GMX fees received are multiplied, while simultaneously price exposure of the underlying blue-chip assets is offset. Amplified upside, reduced downside.
Say you want to have 4x exposure to GLP, while having no price exposure in the current GLP weight. This Zap will:
Borrow underlying assets at today's weights
Mint GLP with those assets
You now have a (temporary) delta neutral position on GLP. While you collect fees accrued, you have no price exposure to the underlying assets. This is until, through trades, the weight of the underlying assets changes. You will have to rebalance your position to the current weights to become delta neutral again.
Follow up: GLP Rebalance
Rebalancing here means: repaying borrowed assets that have a lower portfolio allocation than the current weights, and borrowing assets that have a higher portfolio allocation. Where you would normally redeem and remint your GLP position to do this (paying additional fees in the process), DeltaPrime's Debt Swap feature removes this need. The Zap makes this even easier by:
Debt Swap all borrowed assets to match underlying weights.
This zap resets the exposure back to 0, reducing the effects of Impermanent Loss in the process.
This strategy is not restricted to sAVAX and can't be used for any pegged assetpair borrowable and farmable (eg. ETH -> wstETH on Arbitrum)
Carry trades on DeltaPrime offer an amazing opportunity for LSD (LST) maxis and minis. Those who trust the peg to hold, benefit from compounding their sAVAX with AVAX as a countertoken (carry trading AVAX). This amplifies their sAVAX yield, while running no price risk if the peg holds. With others willing to take this 'pegging' risk, anti-LSDers can deposit AVAX in DeltaPrime, receiving real yield close to the yield received by staking AVAX.
Say you are an sAVAX maxi who wants to compound their $100 worth of sAVAX. This Zap will:
Deposit sAVAX into Prime Account
Borrow 4.5x AVAX
Swap all AVAX for sAVAX
(optional:) farm sAVAX with partner DEX to receive additional swapping fees.
