Unlocking New DeFi Opportunities: gmBTC & gmETH Now Live on Venus Arbitrum

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Venus Protocol has taken another significant step in expanding its offerings by listing gmBTC-USDC and gmWETH-USDC from GMX V2 on the Arbitrum network. This integration provides Venus users with new opportunities to utilize these liquidity tokens as collateral, unlocking greater liquidity and yield generation possibilities.

Understanding gmBTC & gmETH

gmBTC and gmETH are liquidity tokens on GMX V2, backed by BTC-USDC and ETH-USDC liquidity pools. These assets generate yield through leveraged trading, borrowing fees, and swaps on GMX, offering users exposure to BTC and ETH while earning passive income.

The increasing adoption of these assets highlights their importance in the DeFi ecosystem:

  • Over $118.26 million worth of gmBTC has been minted on Arbitrum.
  • Over $210.47 million worth of gmETH has been minted on Arbitrum.
  • More than 757 liquidity providers (LPs) hold gmBTC, while 4,715 LPs hold gmETH, demonstrating a healthy, decentralized distribution.


Why This Matters for Venus Users

The integration of gmBTC and gmETH into Venus Protocol brings several key benefits:

✔ Use as Collateral – Users can now deposit gmBTC and gmETH as collateral to borrow against them.
✔ Unlock Borrowable Assets – Borrow BTC, ETH, or USDC while holding gmBTC or gmETH.
✔ Diversify DeFi Strategies – Expand portfolio strategies with added liquidity and yield opportunities.
✔ Enhanced Security & Pricing – Chainlink oracles provide best-in-class pricing, reducing manipulation risks. ✔ Low-Volatility Asset – gmBTC and gmETH have low beta properties, making them ideal borrowing collateral.
✔ Attractive Yields – Current APRs stand at 17.87% for gmBTC and 37.97% for gmETH, offering competitive returns.

Security & Composability in DeFi

A major advantage of integrating gmBTC and gmETH is their security and composability within the DeFi ecosystem. The latest features in GMX V2, such as Chainlink Data Streams, help mitigate front-running risks and price manipulation. Additionally, GMX’s GM tokens are designed for composability, allowing seamless integration across various DeFi platforms.

gmBTC and gmETH are already being integrated into multiple money markets, including Dolomite, Solv, Abra, Radiant, Rodeo, Vaultka, Silo, LodeStar, and Deltaprime. Moreover, Aave 3 is considering supporting gmBTC, with a TempCheck proposal recently passing.


How to Get Started on Venus?

Venus users can now take advantage of gmBTC and gmETH as collateral. Here’s how:

  1. Supply gmBTC or gmETH on Venus:
  2. Use gmBTC or gmETH as collateral.
  3. Borrow against your collateral in BTC, ETH, or USDC.
  4. Optimize your yield strategy to maximize DeFi gains.

Final Thoughts

With gmBTC & gmETH now available on Venus, users gain new ways to earn, borrow, and grow their DeFi portfolios. The strong liquidity, security, and yield potential of these assets make them an excellent addition to the Venus ecosystem.

This integration strengthens the synergy between Venus, GMX, and Arbitrum, further enhancing the decentralized finance landscape. Whether you’re looking to diversify your DeFi strategies or unlock liquidity in BTC and ETH, gmBTC and gmETH on Venus provide a powerful new way to engage with DeFi.

Start exploring the gmBTC and gmETH markets on Venus today!

Disclaimer

This article is for informational purposes only and should not be considered financial advice. DeFi investments come with inherent risks, including smart contract vulnerabilities and market fluctuations. Always conduct your own research and consult with a financial advisor before making investment decisions.