Umami GM Vaults: Leading the Way in Secure, High-Yield Performance

Umami
6 min readOct 25, 2024

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GM Vaults are setting the bar very high for the rest of the yield products in DeFi

In the world of decentralized finance, performance is the name of the game, and at Umami Finance, our GM vaults have consistently set the gold standard for high-yield, single-sided products. With the return of the bull market looming on the horizon, we’re not only maintaining our top-tier yield offerings but are strategically positioned to capture even greater opportunities in the next couple of months.

Where the Numbers Speak for Themselves

Umami Finance has become a powerhouse in the DeFi ecosystem, thanks to our innovative GM Vaults. Over the past several months, since their launch, these vaults have delivered consistent, high real yields to our users, and as of now, the historic APRs, before fees, for the vaults are:

  • ~14.5% APR on both USDC vaults
  • ~7% APR on ETH
  • ~9.2% APR on BTC

Our GM vaults are specifically designed to eliminate impermanent loss — something other protocols built on top of GMX struggle to offer. Instead of requiring users to split assets across pairs, our single-sided vaults give depositors pure exposure to their preferred assets (USDC, BTC, or ETH) while farming GMX fees.

Performance Stability: Digging into the Numbers

The Open Interest (OI) on GMX v2 has remained balanced, resulting in stable yields.

Because of the implementation of adaptive funding rates on GMX v2 back in November 2023, our GM vaults have remained stable in both bull and bear markets. Over the past six months, the open interest ratio between longs and shorts has remained pretty balanced, thanks to the funding rate mechanism.

Since the launch of GMX v2, traders’ PnL across all markets has totaled -$12.44 million.

This balance has resulted in traders losing $12.44 million in the markets. As our vaults farm the GMX platform fees generated by these trades, the losses on one side are actually wins for our depositors.

Now, let’s take a closer look at the performance stability.

Our PPS (Price Per Share) charts, showcased below, demonstrate how effectively our vaults have performed since launch. These charts depict the steady growth of USDC, BTC, and ETH in their respective LPs, offering a clear view of how stable yields have been maintained.

ETH-USDC LP: 14.6% APR for USDC, and 7.0% APR for ETH since the launch
BTC-USDC LP: 14.2% APR for USDC, and 9.2% APR for BTC since the launch

The GMX platform’s steady flow of trading activity has enabled us to sustain this performance, and we’re confident that these trends will continue, especially as the market heats up, GMX is set to bring an influx of traders and higher fee generation — ultimately boosting yield for our vaults.

Crushing the Yield Field

When comparing Umami Finance’s vaults to other DeFi yield products, it’s clear that we’re not just competing — we’re leading the charge.

Our BTC Vault is currently the undisputed leader in the DeFi space, for non-leveraged yields

BTC Vault Dominance
When it comes to Bitcoin yield, Umami Finance stands head and shoulders above the competition. Our BTC Vault is currently the undisputed leader in the DeFi space, offering a market-leading 9.2% APR, verified by DeFiLlama. No other product comes close to matching the level of sustainable, single-sided BTC yield that Umami delivers. Whether the market is surging or slowing down, our BTC Vault continues to generate strong, reliable returns without the need for complex strategies or active management. For Bitcoin holders seeking unmatched yield and long-term growth, there’s simply no better option.

USDC Vault Performance
Just a few years ago, a 14.5% APR on USDC might have seemed too good to be true, but we have made it a reality. In today’s market, our USDC Vault offers some of the most lucrative and reliable returns available for stablecoins. Built on a stable, long-term strategy designed to avoid impermanent loss, the vault delivers steady gains without the need for high-risk, leveraged strategies. It’s the ideal choice for DeFi users seeking sustainable yields in a market where consistency matters.

ETH Vault Stability
Our ETH Vault, providing a ~7% APR, offers a secure and stable return on one of the most widely-used assets in DeFi. Like the rest of our vaults, it is designed to minimize risk while maximizing returns. By offering users easy access to reliable ETH yields, Umami’s ETH Vault remains a strong option for those looking to grow their holdings without the need for active management or exposure to unnecessary risks.

Exciting Developments on the Horizon

We’re not content with becoming a leader in the DeFi yield space — we’re actively building towards a future that will redefine the yield landscape.

New Vaults and Asset Expansion
We’re currently working on multiple new assets and vault options, including the highly anticipated ARB Vault. With the launch of this vault, Umami Finance will become the go-to destination for yield on $ARB tokens. Base APYs for ARB-USDC LP positions on GMX have fluctuated between 10–20% over the past six months, and our new vault is expected to continue this trend, potentially offering the best $ARB yield in the market.

USDC Index Vault
Additionally, we’re developing a USDC Index Vault that will bundle together all our USDC vaults into one cohesive strategy. This will provide even greater stability for USDC depositors by balancing performance across multiple assets, ensuring smooth and optimized returns no matter what’s happening in the broader market.

Partnerships and Integrations

We’re working on several exciting partnerships that will soon elevate Umami Finance even further. While we can’t share all the details just yet, these integrations will broaden the reach of our vaults and take us closer to becoming the foundational yield infrastructure across the DeFi ecosystem. Stay tuned!

Security: A Fortress of Confidence

While it’s unfortunate that we need to highlight this, the reality of the DeFi space demands it. Security is paramount at Umami Finance, and we are proud to say that since the launch of our protocol, 3 years ago, we haven’t experienced any security incidents — no hacks, no exploits, no breaches.

Our smart contracts for GM Vaults have been thoroughly audited, and we continue to work with the same auditing team that audited the GMX v2 platform, ensuring that our users’ funds are well-protected.

At Umami, security isn’t just a feature — it’s a foundational pillar. Once the vault strategies are deployed, they don’t require any tinkering from developers, ensuring that everything runs smoothly and securely without the need for constant adjustments. This allows depositors to have peace of mind, knowing their assets are secured by one of the most robust infrastructures in DeFi.

This commitment to security extends into all of our future developments as well. We’ve applied for the Arbitrum Security Subsidy Fund (SSF) via Areta to cover most of the upcoming audits for new vaults, including the $ARB vault, ensuring every new product meets the highest security standards.

With Umami, your yield doesn’t come at the cost of your peace of mind.

Across+ Partnership

In the last few months, we’ve also integrated Across Bridge, making it easier than ever to bridge assets directly into our vaults from other chains. With a 95% refund on bridging fees, this integration is unique to our product and offers seamless access to top-tier yields, no matter where your assets are currently stored.

Proud to Deliver, Positioned for More

We take immense pride in the success of our GM Vaults.

Consistently recognized among our peers as one of the top-performing yield products in DeFi, our vaults deliver reliable, single-sided yields with no impermanent loss — a true game-changer in today’s market.

With ongoing ARB rewards and the upcoming ARB Vault launch, there has never been a better time to deposit. By doing so, you’ll not only secure impressive yields, but you’ll also be well-positioned to capitalize on future opportunities in the DeFi space.

We’re proud of what we’ve built, and we’re excited for you to be part of this journey.

Deposit today, maximize your yield, and join us as we continue to raise the bar for DeFi.

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Umami
Umami

Written by Umami

A Bonsai SubDAO Providing Sustainable, Risk-Hedged Arbitrum Yields. https://medium.com/@bonsaidao.xyz

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