The Stabilize Protocol is a decentralized finance application designed to support the stability of stablecoins by using novel strategies that provide liquidity to markets. Users can earn from liquidity rewards for providing that stability whether the market is in bull or bear. The protocol is utilized on both Arbitrum, a layer 2 solution for Ethereum, and BSC networks.
GMX is a premier decentralized perpetual trading platform available for both Arbitrum and Avalanche blockchains. Liquidity providers of the platform earn real yield, meaning yield that is sustainable, from trading fees and losses from the traders. Because GMX is decentralized, anyone can trade, and anyone can be a liquidity provider to earn fees.
In GMX version 1, GLP is the main liquidity token that traders utilize. It represents a basket of tokens such as wBTC, ETH and stablecoins. Stabilize already has a strategy that incorporates the usage of GLP to provide real yield to users via staked esGMX and WETH rewards.
With the introduction of GMX version 2, there are now liquidity tokens, called GM tokens, for each trading market. For example, BTC / USD and ETH / USD each have their own GM liquidity token with their own separate APR. The APRs among these different tokens constantly fluctuate.
Stabilize will soon introduce a diversified index token, called zs-GMUSDC, and strategy that will allow users to earn from the highest earning GM tokens. At specified intervals, the strategy will rotate funds among GMX market tokens that provide the best yield for depositors, thus the strategy algorithm is constantly modifying the composition of the zs-GMUSDC token index. The goal is to provide greater yield for the user than if they deposited funds into GMX markets themself.
The strategy will take rewards received via the GMX airdrops of ARB token and auto-compound those rewards. Part of the strategy’s profit will go towards buying back STBZ to store for future emissions for the Stabilize protocol.
Underlying GM tokens to be supported by the index are:
Take a look at the strategies page to get a closer look at the specifications for this upcoming index token.
Join our community to learn more about Stabilize and zs-GMUSDC
The zs-GMUSDC token strategy is currently undergoing testing to make sure it integrates well within the Stabilize suite. Visit the website to get started using the Stabilize protocol, follow us on Twitter and join the community on Telegram to find out when this new index token launches.