Post by @voltz • Hey

ICYMI: the $GLP market went live on Voltz Protocol last month. So far >$30m of notional has been traded! Read a recap of our spaces below w/ @GMX_IO to fi

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“$GLP is the flywheel of our ecosystem. 70% of the fees are paid out to GLP. Anytime volume is generated on the platform, fees are paid to $GLP holders. Trading volume will drive the rate.” - @0xFredChris
“And the fixed rate comes out of the Voltz AMM. The key innovation of the Voltz AMM is it enables market-driven fixed rates. While the variable rate comes from the underlying market, like with the GLP APR being driven by the fees generated by trading volume.” @0xSimonJones
“One of the biggest opportunities we’ve seen is speculation. People are looking at trading activity that’s taking place on GMX and using that to form a view about the way in which the rate is going to move in the future.” @0xSimonJones
“Then speculating that synthetically, with leverage. In some cases, up to 1,000x leverage. Even if you believe the difference will be 1% difference over the course of the term, with significant leverage, that obviously becomes quite attractive” @0xSimonJones
“An interest rate swap enables you to either be a Fixed Taker or a Variable Taker. If you are a Fixed Taker, you’re selling a variable rate in exchange for a fixed rate of return. And vice versa. This enables trading of fixed or variable rates on top of any market.” @0xSimonJones