TokenInsight Profile picture
Jan 13 β€’ 8 tweets β€’ 4 min read
Could @GMX_IO collapse in a bull market?

In this πŸ§΅πŸ‘‡we will walk you through:
how an imbalance between longs/shorts in a bull market will reduce GLP returns, decrease GLP AUM and liquidity, and trigger a death spiral.
#CryptoResearch
2/
In a bull market, GMX shorts not only do not receive funding fees but also have to pay borrowing fees.

As a result, GMX will be 95%+ long in a bull, as evidenced by OI between 2021-9-1 and 2021-11-10.
3/
GLP was losing money to traders during that period as well.

Traders made a profit of ~$5 million.
4/
We calculated GLP adjusted returns by subtracting (or adding) trader PnL to fees.
5/
GLP's adjusted APR was lower during the bull because traders were winning and higher during the bear because traders were losing.

GLP adjusted APR averaged ~50%.
6/
The sharp decreases in GLP were triggered by events rather than fluctuations in APR, resulting in a positive flywheel that stabilized GLP supply.

Market-wide crypto FUD ➑️ more GLP redeem & more traders & high fees ➑️ high GLP APR ➑️ more GLP mint
7/ Conclusion

The so-called GMX bull market death spiral is not valid.

GLP prints money even if all traders are long and winning in a bull market. GLP-based vaults now also hedge these risks, such as
@rage_trade, @GMDprotocol, etc.
8/
If you find this insightful, give us a ❀️
Retweet it for us!

Read the full article at:
tokeninsight.com/en/research/an….

The author: @quantumzebra123

β€’ β€’ β€’

Missing some Tweet in this thread? You can try to force a refresh
γ€€

Keep Current with TokenInsight

TokenInsight Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @TokenInsight

Jan 13
TokenInsight Daily #CryptoNewsπŸ“° Recap, Jan 12th
1.1/ π‘ͺπ’†π‘­π’ŠπŸ›οΈ
β€’ Genesis owes creditors more than $3 billion, DCG considers selling parts of venture capital portfolio.
β€’ Blockchain.com lays off 28% of workforce.
β€’ FTX loan wiped out $800m in BlockFi executives' equity.
1.2/
β€’ FTX officially lost the naming rights to Miami Heat's arena.
Read 5 tweets
Jan 12
TokenInsight Daily #CryptoNewsπŸ“° Recap, Jan 11th
1/ π‘«π’†π‘­π’ŠβŒπŸ›οΈ
β€’ Data: $372 million of trading volume has gone through 1inch Fusion Mode.
β€’ WOO Network will burn over 705 million $WOO tokens.
β€’ pSTAKE will launch $stkATOM on 12th January 2023.
β€’ DEX aggregator OpenOcean expands to Optimism.
2.1/ π‘ͺπ’†π‘­π’ŠπŸ›οΈ
β€’ Tension between DCG and Gemini intensifies as their managements continue on spats.
β€’ Binance acknowledges past flaws in management of stablecoin's reserves.
β€’ Ark Invest increased holdings in Coinbase by 33,756 shares.
Read 7 tweets
Jan 11
The @ethereum Shanghai Upgrade is around the corner, enabling the withdrawal of staked $ETH.

In this πŸ‘‡πŸ§΅we will take you for a deep dive of the upgrade, an analysis of the potential outcomes.
#CryptoResearch
We'll coverπŸ‘‡:

1/ What is Shanghai Upgrade
2/ Withdrawals
3/ More people might stake $ETH afterwards
4/ Additional rewards
5/ Conclusion
1/
After the Merge on Sep 2022, the withdrawal of staked $ETH is the last puzzle. Shanghai Upgrade includes withdrawals of $ETH staked in the Beacon Chain since Dec 2020, finally giving the network participants the ability to take out their locked $ETH.
Read 11 tweets
Jan 11
We listed 79 new tokens last week🎊.

The topπŸ†3 in terms of 24h trading volume are:

β€’ @FlareNetworks, a Layer-1 EVM blockchain.
β€’ @fronk_inu, a meme token on Solana.
β€’ ShopNext Loyalty Token, by @HelloShopNEXT, a shop-to-earn crypto onboarding platform on BNB.
#CryptoRatings
1/
The graph shows the tokens with a trading volume of more than $400,000 in the past 24 hours, their overall price changes, as well as the corresponding community info.
2/
Most of the projects were launched on BNB and Ethereum, with #memecoin, #DeFi, #Game, and #NFT as the main fields.

Compared to the previous week, we got more Meme tokens this week, but most of them have poor market performance. The only Meme with high trading volume is Fronk
Read 11 tweets
Jan 11
TokenInsight Daily #CryptoNewsπŸ“° Recap, Jan 10th
1.1/ π‘«π’†π‘­π’ŠβŒπŸ›οΈ
β€’ e-Money ceases issuance of Euro-backed stablecoin eEUR.
β€’ Defrost Finance deploys the refund contract, allowing users to claim refunds tomorrow.
β€’ Boba Voyage was paused due to user experience issues.
1.2/
β€’ New Free DAO exploiter has transferred about 1,200 $BNB to Tornado Cash.
Read 7 tweets
Jan 10
The @ethereum Shanghai Upgrade is heating up,
Frax Ether as one the hottest projects in Liquid Staking Derivative narrative, is now under the spotlight.

Our rating for Frax Ether's current performance is BB, with a positive outlook.
πŸ‘‡πŸ§΅our rating breakdown.
#CryptoRatings
In this thread, we'll coverπŸ‘‡

β€’ What is it
β€’ Rating Breakdown
β€’ Technology & Security
β€’ Tokenomics
β€’ Performance
β€’ Ecosystem
β€’ Conclusion
1.1/ What is it
Frax Ether (frxETH) is a liquid staking derivative issued through @fraxfinance's new liquid staking product, pegged 1:1 to $ETH.
Read 13 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(