> For the complete documentation index, see [llms.txt](https://docs.abracadabra.money/learn/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.abracadabra.money/learn/intro/stake/magicglp.md).

# magicGLP

Before using magicGLP (also known as mGLP), make sure to fully understand how GLP works [here](https://gmxio.gitbook.io/gmx/glp). \
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\&#xNAN;*Note: magicGLP staking is available only on the Arbitrum and Avalanche network. Join magicGLP* [***here***](https://app.abracadabra.money/#/magicGLP)*.*

**magicGLP is Abracadabra’s auto-compounder for GLP tokens, in which ETH /AVAX yield is produced by GLP farming, which is therein automatically auto-compounded back into magicGLP.**

<figure><img src="/files/XuKFFG59tApiH6dBdxeg" alt=""><figcaption></figcaption></figure>

With **magicGLP**, the **ETH/AVAX** yield generated from **GLP** farming is automatically reinvested into **magicGLP**, helping you maximize your returns. Like other vault tokens, the value of **magicGLP** will increase over time due to the auto-compounding, causing the **magicGLP:GLP** ratio to rise.

### Deposit GLP tokens into magicGLP

*The following example is set on Arbitrum, the same user experience can be found on Avalanche Mainnet!*

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\&#xNAN;*In order to join the magicGLP auto compounder, you must first have GLP tokens in your wallet. You can purchase GLP tokens with various assets* [*here*](https://app.gmx.io/#/buy_glp)*.*

<figure><img src="/files/1CXGzGBOylXP6rLdYgLP" alt=""><figcaption></figcaption></figure>

Once in the wallet, you can deposit **GLP** tokens by entering the desired amount in the box at the top right of the screen. The first time you interact with the contract, you will need to approve **GLP** token spending before you can click **Stake**.

After approving the transaction in **MetaMask**, you will receive **magicGLP** tokens in your wallet, and rewards will begin compounding!

### Withdraw magicGLP tokens into GLP

<figure><img src="/files/dqa33Hw5WaV6oNil80xI" alt=""><figcaption></figcaption></figure>

To **Unstake**, click on the two arrows on the left side of the screen (as shown above).

Once clicked, you can specify the amount of **magicGLP** tokens to unstake. The first time you interact with the contract, you will need to approve **magicGLP** token spending before you can click **Unstake**.

After approving the transaction in **MetaMask**, you will receive **GLP** tokens in your wallet and will resume earning the base **GLP** rewards!

**Note:** The exchange rate between **GLP** and **magicGLP** changes twice a day—each time a harvest is called and rewards are compounded!

### magicGLP Dashboard:

The **dashboard** features a graph showing the historical performance (APY) of **magicGLP** across various time frames. The **y-axis** represents the **APY**, while the **x-axis** represents the date.

In the top right corner of the screen, users can view the **magicGLP APY**, which includes the effects of auto-compounding. This calculation assumes two harvests per day and factors in the 1% management fee taken by the protocol.

In the middle right section, users will see the **magicGLP:GLP exchange rate**. As more fees are added, **1 magicGLP** will become worth more than **1 GLP**.

Finally, users can check the amount of **GLP** or **magicGLP** tokens available in their wallet, as well as the dollar value of those tokens. Below that, the total supply of **magicGLP** and the total rewards earned by **magicGLP** will also be displayed!

### APY Computation&#x20;

The APY displayed by magicGLP is computed using GLP's APR (taken from GMX) and computed using the following formula, using two compounding actions per day:

$$
Magic GLP APY = (1+GLPAPR/N)^N - 1)\*0.99
$$

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\&#xNAN;*N= (Days in a Year) \* (Number of Compounding action per day) = 730*<br>

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