magicGLP
magicGLP: Abracadabra’s Automated Compounder for GLP Token
Last updated
magicGLP: Abracadabra’s Automated Compounder for GLP Token
Last updated
Before using magicGLP (also known as mGLP), make sure to fully understand how GLP works . Note: magicGLP staking is available only on the Arbitrum and Avalanche network. Join 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.
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.
The following example is set on Arbitrum, the same user experience can be found on Avalanche Mainnet!
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!
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!
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!
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:
N= (Days in a Year) * (Number of Compounding action per day) = 730
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 .
