Pendle - GLP
All about PT-GLP & YT-GLP, their integration with Dolomite, and what makes it special for Pendle users.
Overview of PT-GLP
PT-GLP (Principal Token GLP) represents the principal portion of the GLP yield-bearing asset. Upon maturity, PT-GLP can be redeemed at 1:1 for GLP. For example, if you have 123 PT-GLP, you can redeem them for 123 GLP when it expires in March of 2024.
Since the collective value of its yield component has been separated, PT-GLP can be acquired at a discount compared to the underlying asset. Assuming no swaps, the value of PT will approach and ultimately match the value of GLP asset on maturity when redemption is enabled.
The known final value of PT-GLP (relative to the underlying asset, GLP) is what establishes its fixed yield APY.
PT-GLP is tradeable anytime for GLP, even before maturity. This is made possible through Pendle's AMM.
PT-GLP (March 2024) token address (Arbitrum): 0x96015D0Fb97139567a9ba675951816a0Bb719E3c
The prior information was taken from Pendle's Gitbook. If you notice any of the information is out of date or incorrect, please let us know.
What are the benefits of using PT-GLP on Dolomite?
Since PT-GLP serves as the principal token for GMX's GLP token, you can lock in the implied yield on GLP buy purchasing PT-GLP and holding the purchased PT-GLP until maturity. This allows you to avoid the volatility with GLP's interest while leveraging it, hedging it, or borrowing against it.
How Can you Get PT-GLP?
PT-GLP can be acquired by minting it on Pendle's PT GLP Market page on their web application. To acquire PT-GLP, you must first have valid token that can be zapped into PT-GLP in your wallet (like USDC, ETH, WBTC, etc.), or you can mint it by depositing GLP, which will produce PT-GLP and YT-GLP (YT-GLP represents the yield portion of GLP).
Another method to obtain PT-GLP on Dolomite is by using the Zap feature. You are able to Zap to and from PT-GLP both within your Balance and Borrow Positions. See more on using Zap here.
Depositing PT-GLP into Dolomite
Once you have PT-GLP in your wallet, you may deposit it into Dolomite via the Balances page. To deposit it, select PT-GLP from the asset modal with the Deposit tab selected (shown below).
Note, if it is your first time depositing, you will have to unlock PT-GLP first, then perform the deposit. Once your PT-GLP is deposited, you will be able to use it across Dolomite's various services.
Overview of YT-GLP
YT-GLP (Yield Token GLP) represents the yield portion of the GLP yield-bearing asset. Each token enables you to earn 1 GLP's worth of yield until its maturity in March of 2024. Therefore, upon maturity, YT-GLP will be worth $0 and its value decays towards $0. For example, if you have 123 YT-GLP, you will earn yield as if you hold 123 GLP tokens.
Buying YT allows users to "long" the yield of an asset and profit when the yield received is higher than the cost paid to buy YT.
YT-GLP is tradeable anytime for GLP, even before maturity. This is made possible through Pendle's AMM.
YT-GLP (March 2024) token address (Arbitrum): 0x56051f8e46b67b4d286454995dBC6F5f3C433E34
The prior information was taken from Pendle's Gitbook. If you notice any of the information is out of date or incorrect, please let us know.
What are the benefits of using YT-GLP on Dolomite?
Dolomite empowers users to retain their DeFi-native rights while their assets are deposited on Dolomite. Meaning, you can continue to earn and claim YT-GLP's interest while leveraging it, hedging it, or borrowing against it. Ultimately, enabling YT-GLP as a collateral asset on Dolomite opens the doors for many lucrative strategies to be ran.
How Can you Get YT-GLP?
YT-GLP can be acquired by minting it on Pendle's YT GLP Market page on their web application. To acquire YT-GLP, you must first have valid token that can be zapped into YT-GLP in your wallet (like USDC, ETH, WBTC, etc.), or you can mint it by depositing GLP, which will produce PT-GLP and YT-GLP.
Another method to obtain YT-GLP on Dolomite is by using the Zap feature. You are able to Zap to and from YT-GLP both within your Balance and Borrow Positions. See more on using Zap here.
Depositing YT-GLP into Dolomite
Once you have YT-GLP in your wallet, you may deposit it into Dolomite via the Balances page. To deposit it, select YT-GLP from the asset modal with the Deposit tab selected (shown below).
Note, if it is your first time depositing, you will have to unlock YT-GLP first, then perform the deposit. Once your YT-GLP is deposited, you will be able to use it across Dolomite's various services.
Claiming YT-GLP's Rewards
Since YT-GLP continues to accrue GLP's ETH rewards, you'll need to claim them to accrue the interest it produces. To get started, click on the Claim Rewards button on the YT-GLP row on the Balances page.
Once you click on the Claim Rewards button the following modal will appear, which allows you to see basic stats about Pendle's ecosystem, the total amount you have deposited on Dolomite, and the pending rewards you've earned.
The Total Balances field tallies how much YT-GLP is deposited in your Dolomite account. This includes YT-GLP that is spread across various borrow positions or YT-GLP that's idle in your Dolomite Balance. The Pending Rewards you've earned is accumulated based on your total deposits, even if your YT-GLP deposits are split across various borrow positions!
The ETH rewards are automatically deposited into your Dolomite account.
Risk
You can learn more about the risk parameters for PT-GLP and YT-GLP by visiting the Risk Mitigation page.
Since YT-GLP is an asset whose value decays towards 0 as time progresses towards maturity, the Dolomite team built some special features into Isolation Mode to handle this special case. First, any position opened involving YT-GLP must be closed within 4 weeks (or 1 week before maturity; whichever is sooner). Within 1 week of maturity or sooner, YT-GLP cannot be used to open any more borrow positions. This ensures Dolomite can maintain its solvency despite the fact that YT-GLP's value as collateral trends towards 0 over time.
To process these expirations, Dolomite uses a special Expiry smart contract that resembles a liquidation. You can learn more about the process here.
PT-GLP Price Oracle
The smart contract used for PT-GLP's price oracle can be seen on this page. The implementation gets the 15-minute TWAP exchange rate between PT-GLP and GLP and then gets the price of GLP in USD using the GLP price oracle (which is described on this page).
The current oracle implementation is flash loan resistant. It uses a TWAP of the PT-GLP<>GLP exchange rate and the GLP oracle to get the price in USD.
As a precaution, the price oracle checks that PT-GLP is not borrowable before returning a price. If for any reason in the future PT-GLP is made borrowable, this failsafe will activate and the oracle will purposefully fail to function.
YT-GLP Price Oracle
The smart contract used for YT-GLP's price oracle can be seen on this page. The implementation gets the 15-minute TWAP exchange rate between PT-GLP and GLP and then gets the price of GLP in USD using the GLP price oracle (which is described on this page). The price of YT-GLP is then calculated as:
The current oracle implementation is flash loan resistant. It uses a TWAP of the PT-GLP<>GLP exchange rate and the GLP oracle to get the price in USD.
As a precaution, the price oracle checks that YT-GLP is not borrowable before returning a price. If for any reason in the future YT-GLP is made borrowable, this failsafe will activate and the oracle will purposefully fail to function.
Fees
There are no additional fees for using your PT-GLP or YT-GLP tokens on Dolomite. You keep 100% of the yield it generates.
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