Vovo Partners with GMX to Build Structured Products on Arbitrum

Vovo Finance is excited to announce its official partnership with GMX, the top perpetual swap exchange on Arbitrum, to build structured products that cater to users with different risk profiles.

Principal Protected Product with GMX

Vovo Finance is launching its first Principal Protected Product, which is built by using the weekly yield from Curve to open a high leverage position on GMX, with the choice of long/short BTC/ETH from users. The user is likely to earn 2–3x of Curve yield if they bet on the right direction. Even if the direction is wrong, the user won’t lose a penny of principal and can still earn around 50% of Curve yield. Principal Protected Products is a most popular product in traditional finance, and Vovo is the first protocol to bring this product to DeFi.

GMX is the most successful perpetual swap exchange on Arbitrum, with consistently more than $100m daily trading volume. GMX is also a great protocol to build structured products, because it is fully composable and it supports zero slippage trading, especially beneficial to protocols like Vovo Finance who could open large trades.

Yield Enhancement Product with GMX

Is there any way to earn more than 100% APR by holding a basket of assets you like? Vovo’s next product will help you to achieve that. Currently, GMX LPs(GLPs) earn more than 40% APR in ETH reward plus Escrowed GMX(esGMX) tokens vesting you with long term ownership and governence of the protocol. A GLP consists of a basket of tokens like BTC, ETH, LINK, UNI, etc, which is like a yield bearing index token. Vovo is building a vault that allows users to purchase GLP, uses the ETH reward to long/short the token of their choice on GMX. Also, the vault accumulates esGMX and automatically staked the esGMX to earn more ETH fees. This allows the user to achieve 100–150% APY if the right market direction is selected, while still earning around 20% APY even if the market direction is selected wrongly.

Future Products with GMX

Vovo Finance has been actively exploring various structured products with the GMX team for the last few months, including the yield bearing stablecoin and tokens with leveraged risk/return exposure. Further details will be shared when the product design is finalized.

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