GM Vaults FAQ
All About Umami's GM Vaults
How do GM Vaults generate their Yield? Our GM Vaults are built stop GMX v2 isolated perpetual markets, we combine 4 different GM pools into what we call the "GMI" (GM Index) to source their yield from traders fees. GM Vaults utilize Umami's proprietary internal hedging model to hedge out unwanted delta and give users direct exposure to their desired single sided deposit token.
What are the deposit options? wETH, wBTC, USDC.
What is the GMI? The GMI is an index of 4 GM pools that Umami's GM ETH Vault source their yield from; ETH-USDC DOGE-USDC XRP-USDC LTC-USDC The advantages of using an index over a single pair is allowing the vaults to have more protection from trader PnL as well as open exposure skew in any one pair through diversification.
Where can I see my yield? When you deposit into our GM Vaults, you receive a recipient token called gmUSDC, gmwETH, gmwBTC, etc. This is a yield-bearing token, which means it increases in value proportionally to the yield generated. You can check your balance of your gm tokens on any chain scanner like arbiscan.io, snowtrace.io,...
What happens when you transfer your gm tokens to a different wallet? GM Vault gm tokens are fully transferable, and you can transfer your gm tokens between wallets, to friends, etc., as you would with any other token.
What happens to my yield if I transfer the token? Since the gm tokens are yield-bearing tokens, the yield generated goes to the address holding the gm tokens. This means that when you sell or transfer your gm tokens to an address you do not control, you will no longer earn yield.
How will STIP $ARB incentives be paid out? The vault depositors simply have to stake their vault tokens in the position window and begin earning $ARB.
What are the Vault fees? GM Vaults utilize a 2/20 Structure, 2% AUM over the course of 1 year and 20% of yield generated. is taken as a fee.
How is APR on the front end calculated?
The APR is an estimate based on the fees collected on GMX for the past seven days, extrapolating the current borrowing fee. It excludes:
Price changes of the underlying token(s)
Trader's PnL, which is expected to be neutral in the long term
Funding fees, which are exchanged between traders
Is APR shown on the UI after the fees or before the fees? After fees.
Where can we find the stats on the GM Vaults? Umami hosts a native stats page here: https://umami.finance/stats/gm-vaults
Are GM Vaults audited? Yes. Umami's GM Vaults have been audited by Gaurdian, and the code of GLP Vaults that has been reused in GM Vaults, has been audited twice by Zokyo.
Are more assets coming? Yes we plan to expand our deposit assets offering to most of the GM pools available on GMX v2.
I just deposited why is my balance lower then my deposit amount? GM Tokens have a small mint fee attached to them along with the possibility of PnL effect, but these are both normally temporary, and your position should increase in value over time.
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