PlutusDAO - plvGLP
All about plvGLP, its integration with Dolomite, and what makes it special for plvGLP holders.
Last updated
All about plvGLP, its integration with Dolomite, and what makes it special for plvGLP holders.
Last updated
Overview
plvGLP is an autocompounding vault that was built by PlutusDAO for the GMX platform's liquidity token, GLP. You can learn more about how GLP works here.
On Arbitrum, users can mint plvGLP by depositing GLP at any time. There are no fees incurred for depositing. When redeeming plvGLP for GLP there is a 2% exit fee charged in GLP. The vault functions by taking the ETH rewards and auto compounds them into increasingly more GLP, resulting in plvGLP appreciating in value against GLP. Autocompounding occurs every 8 hours or 3 times per day.
plvGLP token address (Arbitrum): 0x5326E71Ff593Ecc2CF7AcaE5Fe57582D6e74CFF1
The prior information was taken from PlutusDAO's Gitbook. If you notice any of the information is out of date or incorrect, please let us know.
Dolomite's integration with the PlutusDAO ecosystem exemplifies Dolomite's modularity and positioning as a public utility for other protocols to utilize. First and foremost, Dolomite's protocol does not take any fees from anything earned in the PlutusDAO ecosystem, instead passing all rewards on to the user. This includes:
PLS rewards from staking plvGLP
Autocompounded yield that plvGLP earns
plvGLP can be acquired by minting it on PlutusDAO's vaults page on their web application. To mint plvGLP, you must first have GLP in your wallet.
Once you have plvGLP in your wallet, you may deposit it into Dolomite via the Balances page. To deposit it, locate the plus icon (i.e ⊕), to the right of plvGLP and the In Wallet column (shown below).
Note, if it is your first time depositing, you will have to unlock plvGLP first, then perform the deposit. Once your plvGLP is deposited, you will be able to interact with the PlutusDAO rewards ecosystem, the same way you would normally from PlutusDAO's web application!
Depositing special assets like plvGLP into Dolomite results in the creation of your proxy vault. This all happens behind the scenes and occurs for each unique wallet that chooses to deposit plvGLP.
This proxy vault debits your Dolomite balance and gives you access to plvGLP virtual liquidity for use across Dolomite's various features. The proxy vault is created when you perform your first deposit into Dolomite.
The different reward options can be accessed by clicking to expand the plvGLP row on the Balances page if it's not already expanded:
Staking and unstaking plvGLP can be done by clicking the Staking button on the plvGLP row on the balances page, which takes you to the Staking panel (shown below).
Staking your plvGLP always pulls the plvGLP tokens from your proxy vault and deposits them into the plvGLP rewards contract to earn PLS rewards (PLS is PlutusDAO's native governance token). No token approvals are needed to be performed by you to stake your plvGLP since the proxy vault performs them automatically before each staking operation.
You may notice at this point that when you stake your entire plvGLP balance to earn rewards your Available balance on Dolomite remains the same. This concept heavily exemplifies Dolomite's virtual liquidity innovation that allows users to control how and where they want to allocate their tokens for capturing rewards while being able to utilize their liquidity across Dolomite's services.
For example, you can deposit 5 plvGLP and stake all 5 tokens (like in the screenshot shown above). Then you can continue to use the original balance of 5 plvGLP to open as many isolated borrow positions as you'd like. The plvGLP deposited for staking doesn't change your available balance and vice versa (depositing some or all of your plvGLP into borrow positions doesn't change how much plvGLP you can stake).
Staking your plvGLP through Dolomite's interface produces PLS rewards that you can claim to your wallet (not your proxy vault) by clicking the Claim Rewards button on the plvGLP row on the balances page. Clicking Claim Rewards takes you to the following panel:
Click the Claim Rewards button to send the pending rewards shown above directly to your wallet.
The Emission APR shown above reflects the APR yield earned in PLS for staking plvGLP and the GLP APR represents the yield being auto-compounded into more plvGLP.
plvGLP is not a borrowable asset and is permanently in Isolation Mode. You can learn more about the other risk parameters by visiting the Risk Mitigation page.
The plvGLP price oracle can be found on this page, which accounts for the price of GLP using the methodologies described here as well as the exchange rate between plvGLP and GLP.
Dolomite's implementation also subtracts the exit fee from the price to reflect the cost to liquidate plvGLP by redeeming it for GLP.
The current oracle implementation is flash loan resistant as long as plvGLP remains unborrowable. Meaning, the plvGLP asset must be unborrowable for this price oracle implementation to be considered safe.
As a precaution, the price oracle checks that plvGLP is not borrowable before returning a price. If for any reason in the future plvGLP is made borrowable, this failsafe will activate and the oracle will purposefully fail to function.
Getting liquidated for any plvGLP you have in a borrow position will result in the plvGLP you hold being seized by the liquidator and sold off using the normal collateral calculations, as explained in Liquidations. Importantly, only the plvGLP is seized though. All PLS rewards are kept in your vault and are never taken by the liquidator under any circumstance.
Dolomite never takes your rewards when a complex collateral asset is liquidated. Only the collateral asset is ever taken.
There are no special fees for using your plvGLP tokens on Dolomite. You keep 100% of the yield and staking rewards.
