# Overview With the crypto sphere expanding, (GMX V2) GM vaults are emerging as a pivotal component in the Arbitrum DeFi landscape. These vaults offer a distinctive opportunity for investors seeking **single-sided exposure** to premier assets such as **$USDC,** **$ETH**, and **$BTC** with continued additions including **$ARB** planned.\ \ As the vault strategies evolve with the changing landscape, we are confident that GMX V2 and our GM vaults will set the groundwork for an enhanced DeFi experience for every user.\ \ By depositing into $ETH, $BTC, $USDC or any future backed GM pools, users will be able to leverage the benefits of **liquidity provision** and autonomously determine their risk profile by **choosing their desired single-sided exposure.** Let’s look at how the vaults will achieve this. ### Strategy Liquidity is deposited into GM pools - [Yield Sources](https://app.gitbook.com/o/pt037oTINTlimfBFBQel/s/MxcGyx5kIW5oBPBlyRqM/~/changes/86/gm-vaults/yield-sources), which form the core of the vaults’ operation. To maintain balance and stability in their asset allocation, GM vaults rely on internal netting; a unique and extremely efficient hedging mechanism, developed by the Umami team. The strategy is executed trustlessly by an advanced, distributed network of companion bots that act in a reliable and redundant manner, within the strict and immutable bounds of the on-chain constraints. ### High Composability and Scalability Our GM Vaults stand out in the DeFi landscape due to their **high composability and scalability.** This means they are designed not only to adapt to varying market conditions and user demands but also to **seamlessly integrate with other DeFi protocols.** This composability allows for the creation of new and innovative financial products, enhancing the overall utility and **potential of the GM vaults**. Moreover, our vaults are built for scalability, ensuring they can handle significant increases in usage and complexity without compromising performance or security. ### Internal Netting Algorithm We have implemented a similar **Internal Netting** mechanism utilized in the GLP vaults to maintain a balance between assets. This algorithm has been successfully hedging with a TVL of $10 million, achieving this at an extremely low cost of \~$80k. ### Rebalancing Our GM vaults undergo systematic rebalancing at multi-hour intervals looking for a delta variance of \~0.15%. This process is crucial to maintaining the assets in their most effective state, adapting to market shifts and optimizing investment outcomes.