Umami’s much anticipated Deconstructed GLP Vaults have been performing above expectations since live Arbitrum main net testing began and now it is time to talk about our Public Beta launch so users can finally get access to these best-in-class yields!
Performance During Testing
Vault performance during the closed main net testing was made publicly visible via the Umami Finance website. Approximately $500k of DAO approved treasury funds were scaled in over the course of the test. Though the testing has now concluded, a snapshot of the data has been taken, and can be viewed in its entirety here.
We are pleased to confirm that the strategy performed as intended at scale, and over the course of the 22 day trial, the vault shares across all assets increased in value by approximately 2.2%, which translates to a very respectable annualized gain of 35%. Most notably, the internal netting strategy that the vaults employ meant that hedging was extremely efficient — with the vault requiring (at most!) just 10% of the collateral to hedge vs that of an isolated Delta-Neutral vault.
It’s worth noting that during this scaling period, the GLP APR was quite low (~10%), so the bulk of the gain came from trader losses on GMX — GLP benefitted from approximately $10M of losses during the testing period. Anyone minting GLP, or depositing into the Umami vaults should be aware that their position as a counterparty to GMX traders can result in loss as well as gain if fortune shifts in traders’ favor.
During the Public Beta Umami will be limiting deposits into the USDC Vault TVL to users with Whitelisted accounts, in an attempt to create a balance between ensuring access for our earliest supporters and new users of the Umami ecosystem. To be eligible for the Whitelist, you must hold at least 10 cmUMAMI or mUMAMI tokens in the wallet you wish to deposit with at the time of the snapshot. Initially there will also be a deposit cap of $50,000 per whitelisted account for the USDC Vault to prevent any one user or entity from taking up excessive percentages of total TVL.
All other asset Vaults will be entirely public at launch with no restrictions on who can deposit or how much.
The Snapshot for the Whitelist will be taken Wednesday, June 28th, so make sure you allocate proportionally before then.
Beta Launch Details
We’re excited to be able to announce that the vaults will be open to the public at the end of this week! Initial TVL caps are outlined in the table below. While we have performed thorough testing and automated the deployment of the vaults, out of an abundance of caution we have intentionally kept the initial cap very low in order to limit the impact in the unlikely event of intial issues. Caps will be raised regularly with increases being announced both in our Discord and on our Twitter — please make sure you’re using the up-to-date accounts!
Note that Umami is using the term “Beta” as our dev team will continually be improving the functionality and efficiency of the Deconstructed GLP Vaults. Some of these improvements include an increased level of decentralization of the Keeper bot and support for additional hedging venues (e.g. Aave) for times when GMX OI caps are reached.
Umami Community AMA: Public Beta Launch Details Recording: Umami DAO Community AMA: GLP Vault Public Beta Launch Details
Newly Published Deconstructed GLP Vault Docs: https://umami-dao.gitbook.io/umami-dao/deconstructed-glp-vaults