Question 1

How does magicGLP reinvest GLP farming yield, and why can the magicGLP:GLP ratio rise over time?

Accepted Answer

magicGLP, also called mGLP, is an auto-compounding wrapper for GLP tokens. ETH/AVAX yield generated by GLP farming is automatically reinvested into magicGLP. As fees are added, magicGLP can become worth more relative to GLP, so the magicGLP:GLP exchange rate can rise over time and one magicGLP can be worth more than one GLP. This does not guarantee that a particular return will be realized or that the exchange rate will rise by a fixed amount.

Question 2

How does the magicGLP-to-GLP exchange rate change, and what role does harvest play?

Accepted Answer

The magicGLP-to-GLP exchange rate changes as rewards are compounded: each time harvest is called and rewards are reinvested, the rate is updated. The stated frequency is twice a day. This describes the frequency associated with harvest and compounding; it does not guarantee execution at fixed times on every occasion.

Question 3

How is the magicGLP APY shown on the dashboard calculated, and what assumptions and fees does it include?

Accepted Answer

The magicGLP APY shown on the dashboard includes the effect of auto-compounding. Its calculation assumes two harvests per day and includes the protocol’s 1% management fee. The two daily harvests are an assumption used in the APY calculation, and the management fee is a cost included in it; neither is a promise of the actual return.

Question 4

How do you deposit GLP into magicGLP, and what steps are required for the first interaction?

Accepted Answer

You need to hold GLP in your wallet before depositing. For the first interaction with the contract, approve the contract to spend GLP, then submit the staking transaction. Once it is complete, magicGLP is sent to your wallet and rewards begin compounding.

Question 5

What do you receive after unstaking magicGLP, and how does the reward status change?

Accepted Answer

When unstaking, first specify how much magicGLP to unstake. For the first interaction with the contract, approve it to spend magicGLP before submitting the unstaking transaction. Once complete, GLP is sent to your wallet and you resume earning the base GLP rewards.

Question 6

On which networks is magicGLP staking available?

Accepted Answer

magicGLP staking is available only on Arbitrum and Avalanche.

Question 7

How does the magicGLP wrapper make GLP positions usable as collateral on Abracadabra?

Accepted Answer

Wrappers adapt collateral types such as GLP positions—which have special features that cannot be integrated directly—to Abracadabra while retaining those features. With a wrapper, the Cauldron recognizes and accepts the wrapped token as collateral, rather than the unwrapped GLP position.

Question 8

How can a user wrap collateral such as magicGLP when interacting with a Cauldron?

Accepted Answer

A user can wrap the asset as part of an action when calling the Cauldron, or submit a separate wrapping transaction before interacting with it. In either flow, the token provided to the Cauldron as collateral is the wrapped token.

Question 9

How does a Cauldron that accepts magicGLP collateral handle MIM borrowing and user solvency?

Accepted Answer

A Cauldron is an isolated market, and Abracadabra deploys one for each accepted collateral type. It handles calculations related to MIM borrowing, user solvency, and liquidation. Users interact with the Cauldron to deposit collateral, borrow MIM, or use leverage; liquidators use it to check a user's solvency and liquidate a position when needed.

Question 10

How can a Cauldron combine collateral, borrowing, and leverage actions?

Accepted Answer

A Cauldron can bundle actions such as depositing tokens, adding them as collateral, borrowing, and using leverage into one transaction, and execute the sequence atomically. This lets a complex operation, such as leveraging, run as a single transaction flow instead of requiring each action to be submitted as a separate transaction.

Question 11

What does an oracle do in Abracadabra collateral borrowing markets?

Accepted Answer

Each Abracadabra market has an oracle that provides a USD price for the relevant collateral and is connected to the corresponding Cauldron. The Cauldron handles calculations related to MIM borrowing and user solvency, so the collateral's USD price is an input to those calculations; providing that price is the oracle's role.

Question 12

How do DegenBox shares represent deposited tokens and changes in their yield?

Accepted Answer

DegenBox uses shares to represent token amounts, but a share represents relative value in the total pool rather than a fixed amount of the underlying token. Because yield strategies can change the pool's total token amount, the token value corresponding to a share can also change. When a strategy earns a profit, it increases the value of a share of that token and distributes the gain equally across all deposits.

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About MagicGLP (MAGICGLP)

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Supply and Issuance Mechanism

Frequently Asked Questions About MagicGLP (MAGICGLP)