magicGLP
magicGLP: Abracadabra’s Automated Compounder for GLP Token
Before using magicGLP (also known as mGLP), make sure to fully understand how GLP works here. Note: magicGLP staking is available only on the Arbitrum and Avalanche network. Join magicGLP here.
magicGLP is Abracadabra’s auto-compounder for GLP tokens, where ETH /AVAX yield produced by GLP farming is automatically auto-compounded back into magicGLP.
With magicGLP, the ETH/AVAX yield generated from GLP farming is automatically reinvested into magicGLP, which helps you maximise your returns. Like other vault tokens, over time, the value of magicGLP will increase due to the auto-compound, causing the magicGLP:GLP ratio to rise. Join the magic of passive income with MagicGLP!
Deposit GLP tokens into magicGLP
The following example is set on Arbitrum, the same user experience can be found on Avalanche Mainnet!
In order to join the magicGLP auto compounder, you must first have GLP tokens in your wallet. You can purchase GLP tokens with various assets here.
Once in the wallet, you can deposit GLP tokens by inserting the desired amount in the upper box, on the right side of the screen. The first time you interact with the contract, you will need to approve GLP token spending before you can click on “Stake”. After having approved the transaction in Metamask, you will now have magicGLP tokens in your wallet and rewards will begin compounding!
Withdraw magicGLP tokens into GLP
In order to “Unstake”, please click on the two arrows on the left side of the screen (see above).
Once done, you can input how many magicGLP tokens are to be unstaked. The first time you interact with the contract, you will need to approve magicGLP token spending before you can click on “Unstake”. After approving the transaction in Metamask, you will now have GLP tokens in your wallet, and will resume earning base GLP rewards!
Note: The exchange rate between GLP and magicGLP changes twice per day, each time a harvest is called and rewards are compounded!
magicGLP Dashboard:
The dashboard contains a graph of magicGLP’s historical performance (APY) across various time frames. The y-axis represents the APY and the x-axis represents the date. In the top right corner of the screen, users will be able to see the magicGLP APY, which factors in auto compounding. This calculation assumes two harvests per day, and includes the 1% management fee taken by the protocol. In the middle right section of the screen users will be able to see the magicGLP:GLP exchange rate. As more and more fees get added, 1 magicGLP token will be worth more than 1 GLP.
Lastly, users will be able to check how many GLP or magicGLP tokens are available in their wallet, as well as the dollar value of those tokens. Below that, users will be able to find the total supply of magicGLP as well as the total rewards earned by magicGLP!
APY Computation
The APY displayed by magicGLP is computed using GLP's APR (taken from GMX backend) and computed using the following formula, using two compounding actions per day:
N= (Days in a Year) * (Number of Compounding action per day) = 730
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