Thread by @DynamicMuller

A decentralized, digital asset that allows users to instantly collateralize & access short-term capital instantly by leveraging the #arbitrum Blockchain.

And that's $plvGLP ✊

As an asset class, it has tremendous potential for integration with @LodestarFinance & @VendorFi.

🧵

Before I proceed, I'll like to define what is meant by "#Primecollateral" so as to give us more clarity. I'm pretty sure some of us might just be hearing it for the first time. Don't worry, I'll try as much as possible to explain this thread in its simplest term for better

... assimilation and comprehension.

• So what's Prime Collateral?

#Primecollateral is a class of asset that is frequently utilized as a form of loan security because it is thought to be of high quality and dependability.

The most common types of prime collateral are high-value assets like stocks, bonds, and real estate. When making a loan, banks, credit unions, and other financial organizations frequently demand prime collateral in order to safeguard themselves from default.

This kind of security aids in guaranteeing a borrower's capacity to repay a loan. Liquid, or easily convertible into cash, prime collateral is the norm. Because of this, it serves as a useful asset for lenders and lowers their risk.

So with that being clarified, I'm pretty sure some of you might as well be hearing $plvGLP for the very first time and be wondering what is is. Very quickly, let's look a dive into what $plvGLP is

• So what is $plvGLP?

$plvGLP is acquired by depositing $GLP into Plutus’ Vault contract with APR is around 29% to automatically rebase ETH rewards into more $GLP. $plvGLP holder can continues depositing their token into @LodestarFinance for earning a greater yield. (More details as we proceed)

Without further ado, Here are what you should know about the potential of $plvGLP as #PrimeCollateral and its integrations with @LodestarFinance and @VendorFi!

1. #PLVGLP is a decentralized, digital asset that allows users to instantly collateralize & access short-term capital

..instantly by leveraging the arbitrum Blockchain. It is based on a decentralized blockchain protocol, which means that all transactions are recorded on a public ledger & are immutable. This allows users to trust that their capital is secured and that their investments are safe.

A cutting-edge asset class called plvGLP has the potential to transform the world of collateralized lending. It enables lenders to access liquidity in a secure and transparent manner by offering prime collateral in the form of blockchain-based tokens.

The tokens, which can be used to collateralize loans and offer a more effective and affordable substitute to conventional collateralized lending, are backed by a worldwide liquidity pool.

Additionally, PlutusDao offers a variety of sophisticated trading tools so consumers may

.. maximize their investments.

With PlutusDao, users will be able to take advantage of the potential offered by the digital economy by using an open financial system.

PlutusDao is the organization that created and manages the $plvGLP token. The $plvGLP token is a digital asset

...that is used to access the services of PlutusDao, such as discounted trading on the PlutusDao platform, earning rewards for providing liquidity to the platform, and participating in governance decisions. The $plvGLP token is also used to reward users for completing tasks

...related to the development of PlutusDao, such as testing new features and providing feedback.

Overall, #PLVGLP is a great way to access short-term capital quickly and easily. It is a secure, decentralized platform that allows users to trust that their investments are safe and

..and that they will receive the funds when they need them.

2. The platform uses #Arbitrum’s distributed ledger technology to ensure that all transactions are recorded, transparent, and secured. This makes it an added advantage!

I know you might be thinking, added advantage in what sense? 🤷... Don't worry, I'll explain.

Follow me 👇

The arbitrum Blockchain is a second-layer scaling solution (Layer 2 blockchain) for Ethereum. It is faster, more scalable, & more private than other blockchains. It uses a hybrid consensus system combining proof-of-stake and optimistic rollup technology to ensure low transaction

... & high throughput transactions. It is also highly configurable, allowing developers to customize features such as privacy, scalability, and security. Additionally, its unique smart contract architecture allows for the creation of contracts that are much more secure than those

created with other blockchain platforms.

3. It is a highly liquid asset, making it ideal for collateralization and short-term financing

$plvGLP is a highly liquid asset because it is backed by a wide variety of global government bonds, from both developed and emerging markets.

As a result, it can be easily traded and converted into cash, making it an ideal asset for collateralization & short-term financing. Its liquidity means that it can be used as collateral for loans & other transactions, providing lenders with a low-risk way to secure their money.

The asset’s liquidity also makes it easy to access short-term financing, allowing holders to take advantage of potentially profitable opportunities without having to tie up their capital for an extended period of time.

4. #PLVGLP been integrated with @LodestarFinance and @VendorFi, allows users to access short-term capital quickly and securely

Let me elaborate and shed more light on both parties involved first, "@LodestarFinance " & "@VendorFi"

In order to help leverage and release staked liquidity, @LodestarFinance is the first protocol to bring collateralized staked assets to the #Arbitrum ecosystem. Focusing on $GMX $GLP holder, Lodestar Finance using $plvGLP as their Prime Collateral Asset.

Since Lodestar is essentially a Compound fork, you can loop assets to get more rewards.

Looping in this situation entails depositing $plvGLP as collateral, borrowing USDC, purchasing $plvGLP with said USDC, and then depositing once again.

While on #Arbitrum, @VendorFi is a permissionless, non-liquidation money market that enables you to specify the terms (such as the due date, the amount that can be borrowed, etc.) for borrowers.

It simply implies that @VendorFi enables you to "Be A Bank Of Your Own"!

By partnering with these two leading financial technology companies, $plvGLP can provide SMBs (Small to Medium Sized Businesses) with an easy and efficient way to access capital, without having to go through traditional bank loans nor liquidate nor pledge their holdings.

This opens the door to more competitive financing options & can help SMBs access the funds they need more quickly and cost-effectively.

In other words, through a partnership with @LodestarFinance & @VendorFi, users can securely transfer funds via smart contracts & receive

... liquidity quickly.

As said earlier, the platform uses Arbitrum’s distributed ledger technology to ensure that all transactions are recorded, transparent, and secure. The platform is also integrated with security protocols to ensure the safety of user funds. With $plvGLP,

...users can access short-term capital quickly and securely, without the need for costly and lengthy loan processing.

Additionally, the integration of $plvGLP with @LodestarFinance also provides users with access to a range of liquidity sources,

...allowing them to take advantage of arbitrage opportunities and providing them with more flexibility when it comes to managing their capital.

5. #plvGLP is designed as a convenient & lucrative experience for GLP.

For GLP holders, plvGLP is intended to be a practical and profitable experience. It provides increased yield by combining rewards, natural GLP yield, and a share of exit fees.

The esGMX platform, which uses a special algorithm to reward GLP holders for their loyalty and long-term holding of the token, provides the benefits. This rewards program is expanding continually and enables holders to boost their assets' returns.

The yield farming system produces the native $GLP yield. As a result, users can stake their $GLP tokens in the plvGLP pool to farm $GLP tokens and earn rewards. They can earn additional payouts by staking more $GLP tokens.

The share of the exit fees is an additional benefit of $plvGLP. Every time a user exits the platform, they are charged an exit fee. A portion of this fee is allocated to $plvGLP holders. This helps to offset the cost of holding GLP tokens & increases the returns of the platform.

$plvGLP also has an auto-compounding feature. This allows users to automatically reinvest their rewards & exit fees into the platform, so that they can continually grow their earnings.

Furthermore, unlike a conventional AMM, GLP uses a rapid oracle to borrow the "actual price"

...from other trading venues rather than spending money on locating or changing prices as they change.
The protocol uses both the GLP and GMX tokens. The GLP token is the liquidity provider utilized for swapping, leveraged trading, etc.

GLP is a basket of tokens: ETH, BTC, AVAX, and stablecoins in Avalanche and ETH, BTC, UNI, LINK, and Stablecoins.

$GLP token rebalances according to usage, which is also an excellent way to provide liquidity without impermanent loss.

6. $plvGLP is one of the highest-rated forms of collateral on the platform with an LTV of 80%.

This means you can borrow up to 80% of the value of your collateral.

$plvGLP is an asset-backed token which is secured by collateral. This collateral is over-collateralized, meaning

...that the value of the collateral is significantly higher than the loan amount. Therefore, $plvGLP is one of the highest-rated forms of collateral on the platform with an LTV of 80%. This means borrowers can borrow up to 80% of the value of their collateral, making it one of

...,it one of the most attractive forms of collateral for potential borrowers.

Additionally, borrowers can choose to pay back their loan in either fiat or cryptocurrency, giving them the flexibility to choose the currency which works for them.

7. The #PLVGLP asset has a strong governance mechanism that guarantees the security of users' funds.

#plvGLP is a very safe asset with a strong governance system that protects users and their money by using many layers of protection. The #arbitrum blockchain, a safe and secure

...blockchain platform, is the foundation upon which it is first created. Secondly, it has smart contracts that are safe from hacking and manipulation and are immutable. Third, it has a decentralized governance system that enables asset holders to vote on protocol changes.

This feature helps to guarantee that the system continues to be compliant with laws and security best practices.

Last but not least, it has a built-in dispute resolution system that, if necessary, enables users to get their money back in the event that it is ever lost or stolen. Together, these characteristics lead to make #PLVGLP an extremely secure asset with a strong governance system

...that ensures the safety of users and their funds.

I hope this thread has given you a better understanding of the potential of $PLVGLP as #PrimeCollateral and its integrations with @LodestarFinance and @VendorFi. 😊

To explore this opportunity @plutusdao has brought to the space, visit plutusdao.io

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#DynamicMuller 🍷