GLend by Gemach DAO
GLend - Gemach DAO's Premier Protocol
GLend is an innovative, decentralized, and open-source protocol that redefines borrowing and lending in the decentralized finance (DeFi) space. Developed as part of Gemach’s ecosystem, GLend aims to unlock the value of billions of dollars in crypto assets—many of which are traditionally illiquid due to being locked in tokens, LP positions, vaults, or derivatives—by enabling their use as collateral. The protocol is uniquely designed to support whole-portfolio collateralization, with initial support for prominent assets like GMX and GLP.
Overview
- Decentralized Finance (DeFi) Evolution: GLend operates without centralized control, giving users full autonomy over their funds. It leverages blockchain technology to provide a transparent, secure, and permissionless environment for financial activities.
- Collateralization & Autocompounding: Users can supply their assets as collateral and enjoy the benefits of autocompounding rewards, ensuring that yields are reinvested to maximize returns.
- Whole-Portfolio Collateralization: For the first time, entire portfolios can be used as collateral. This feature expands the usability of assets that were previously locked or underutilized in other protocols.
- Unlocking Value: Billions of dollars in crypto assets that could not traditionally be collateralized—such as various tokens, liquidity provider tokens, vault positions, and derivatives—now have potential liquidity, enhancing overall market efficiency.
How GLend Works
Supplying Liquidity
GLend allows users to supply liquidity to assets and earn attractive rewards. The process is designed to be intuitive:
- Connect Your Wallet:
- Begin by connecting your crypto wallet to the GLend platform.
- A simple signature in your wallet confirms the connection; no transaction fee is incurred at this stage.
- Select an Asset:
- Choose the asset you wish to supply liquidity for.
- View key metrics such as:
- Approve the Asset (if necessary):
- Approve the selected asset within your wallet to grant GLend access to your balance.
- This step may require signing a transaction and paying a gas fee.
- Deposit:
- Enter the volume of the asset you wish to deposit.
- When you deposit, the asset is automatically enabled as collateral, immediately increasing your borrowing capacity.
- Confirm the deposit by signing the transaction and paying any applicable gas fees.
Borrowing Assets
With supplied assets serving as collateral, users can borrow other assets against their positions:
- Select Borrowable Asset:
- Choose the asset you wish to borrow.
- Ensure that there is sufficient liquidity and that your total borrow does not exceed your borrow limit.
- Enter Borrow Amount:
- Input the desired amount and click the “Borrow” button.
- You might need to sign a transaction and pay a gas fee to complete the process.
- Dashboard Management:
- Your dashboard displays the outstanding borrowed assets and your current borrow limit.
- This allows you to continuously monitor your risk and manage your positions effectively.
Risk Management and Liquidation
GLend employs a robust risk management framework to ensure the safety and stability of user positions:
- Borrow Limit: The maximum amount you can borrow is determined by the total value of your deposited collateral, adjusted by asset-specific collateral ratios.
- Borrow Utilization:
This metric shows the ratio of your borrowed assets to your total collateral. It acts as a visual indicator to gauge risk:
- <75%: Your position is relatively safe.
- 75%-90%: Caution is advised.
- 90%-95%: Your borrow utilization is high; consider adjusting your position.
- >95%: High risk of liquidation. Immediate action (repayment or additional collateral) is recommended.
- Liquidation Process:
If a user’s borrowed amount exceeds their borrow limit (i.e., borrow utilization >100%), the protocol triggers a liquidation event:
- Liquidators step in to seize available collateral.
- Market transactions are executed to repay the outstanding debt.
- Liquidators earn a fee for their service, ensuring the system remains solvent.
Collateral Ratio and Liquidation Threshold
- Collateral Ratio: This is the percentage of an asset's value that can be used as collateral. For instance, stablecoins may have a high collateral ratio (e.g., 85%), while more volatile assets like BTC may have a lower ratio (e.g., 75%).
- Liquidation Threshold: Slightly higher than the collateral ratio, this threshold determines when a position is at risk of liquidation. Once the total value of borrowed assets exceeds the sum of the deposited collateral multiplied by the liquidation thresholds, the position becomes eligible for liquidation.
Audits and Security
Security is paramount for GLend. To ensure the integrity and resilience of the protocol, GLend undergoes regular audits by reputable firms:
- Peckshield Audit: A comprehensive review of the protocol’s security measures is available. View Peckshield Audit Report [1]
- Armors.io Audit: An independent audit that evaluates the platform’s safety and robustness. View Armors.io Audit Report [2]
- Ongoing Security Measures: GLend is committed to future audits and continuous improvements to safeguard user funds and maintain platform integrity.
Smart Contracts and Money Markets
GLend is deployed on the Arbitrum network and utilizes a range of smart contracts and money markets to manage its operations.
Smart Contracts [3]
| Contract | Address |
|---|---|
| GLEND Token | 0x43df266501dff4773f8f33179e3b96ab94dbc28d |
| Camelot V3 GLEND/WETH Pool | 0xe9d3e6811d1be8ba40a9273ebec6ff09fe2a6741 |
| Comptroller | 0x5D57328423BEd206E0EE41c32bbCE4252E303d54 |
| Unitroller | 0xeed247Ba513A8D6f78BE9318399f5eD1a4808F8e |
| Price Oracle | 0x7aa74f173bf3FF1Dc43858b8C109E9002F152FdC |
| Stablecoin Interest Rate Model | 0xa738b4910b0a93583a7e3e56d73467fe7c538158 |
| Crypto Interest Rate Model | 0xc2933eff32188e4655887cdc9c707a77e1229595 |
Money Markets
GLend supports multiple money market contracts, facilitating both lending and borrowing operations [3]:
| Asset | Money Market Contract Address |
|---|---|
| tETH | 0x0706905b2b21574DEFcF00B5fc48068995FCdCdf |
| tWETH | 0xa738b4910b0a93583a7e3e56d73467fe7c538158 |
| tWBTC | 0x0A2f8B6223EB7DE26c810932CCA488A4936cF391 |
| tUSDC | 0x068485a0f964B4c3D395059a19A05a8741c48B4E |
| tARB | 0xC6121d58E01B3F5C88EB8a661770DB0046523539 |
| tGLP | 0xFF2073D3810754D6da4783235c8647e11e43C943 |
| tGMX | 0x20a6768F6AABF66B787985EC6CE0EBEa6D7Ad497 |
| tMAGIC | 0x4180f39294c94F046362c2DBC89f2DF7786842c3 |
| tUSDT | 0x4A5806A3c4fBB32F027240F80B18b26E40BF7E31 |
| tDAI | 0xB287180147EF1A97cbfb07e2F1788B75df2f6299 |
| tFRAX | 0x27846A0f11EDC3D59EA227bAeBdFa1330a69B9ab |
| tUNI | 0x8b44D3D286C64C8aAA5d445cFAbF7a6F4e2B3A71 |
| tLINK | 0x87D06b55e122a0d0217d9a4f85E983AC3d7a1C35 |
GMD Asset Money Markets
Specialized money markets allow users to lend or borrow GMD assets [3]:
| Asset | Contract Address |
|---|---|
| tgmdBTC | 0xB60EF53BA18Bd85Ab642c2F78dF13e7aBCCdCb9c |
| tgmdETH | 0xB5dBDb01B08bff12E822EB28259ECCEb6cC91529 |
| tgmdUSDT | 0x80aEFB7dAde25542cc2f558Ee605aC2FC974Ceb9 |
| tgmdUSDC | 0xe4843e44342617024F6b9d615dFfBe8858F8Ea16 |
Future Developments
GLend is continually evolving. Future enhancements are expected to:
- Expand collateral options to include a broader range of assets.
- Integrate additional money markets and optimize interest rate models.
- Increase the frequency and depth of security audits.
- Enhance user interfaces and dashboard analytics to better manage risk [4].
Conclusion
GLend stands at the forefront of DeFi innovation by unlocking the latent value in crypto assets that were previously sidelined due to collateralization limitations. By offering a decentralized, secure, and user-friendly borrowing and lending platform, GLend empowers users to maximize the utility of their digital portfolios. With rigorous risk management, continuous security audits, and a commitment to future enhancements, GLend is poised to redefine asset liquidity and financial interactivity in the crypto ecosystem [5].
