GM Index (GMI)

What is the GM Index?

GM Index (GMI) is an index protocol that allows users to invest in a basket of assets by interacting with the protocol's Index contract. It manages various assets, calculates their weights, and allows users to mint, burn, and redeem index tokens.

What tokens are in the GM Index?

The current index assets are gmBTC, gmETH, gmSOL, and gmUSDC-USDT-SWAP.

Can tokens be added or removed from the Index?

Yes, the Admin can add new tokens or remove existing ones, with accompanying weight adjustments. Ample warning will be given ahead of token changes.

How can I check the composition of the GMIndex?

The bottom of the main GMI page displays a live breakdown of the assets that make up the index.

How are the token weights determined?

The index periodically undergoes optimal rebalancing via a proprietary algorithm that enhances the risk/return ratio of the basket of assets.

How can I mint index tokens (GMI)?

Users can "mint" GMI tokens by depositing one of the GM assets into the Index. This is done via the "Buy GMI" section/button on the main GMI App page. The number of GMI tokens that are minted is determined by equivalent ratio math.

A simple example would be if your GM asset deposit value is 2% of the total GMI token value in the Index, then you would mint and receive an amount of GMI that is equivalent to 2% of the total GMI token supply.

How do I get GM tokens?

See the instructions from GMX. You can buy GM tokens here.

Do I have to use GM tokens to buy GMI?

It's your lucky day. You can also use USDC to buy GMI. If you select USDC to Buy GMI and enter an amount, our code in the background calls the GMX contracts, buys GM tokens (the contracts determine which GM asset is furthest away from its target weight and buy that one), and deposits them into the Index, and withdraws GMI to your wallet, all in one click of a button.

Can I exchange GMI tokens to redeem underlying assets?

Yes, users can click on the "Sell GMI" button on the main GMI App page. This effectively burns their GMI tokens, and they receive the equivalent value of the burned GMI tokens in the GM asset they selected to sell the GMI for.

What are the fees?

The Index fees are as follows:

• The Minimum Fee is the minimum fee that is charged on each Index deposit or withdraw.

• The Base Fee is the nominal fee if the token you are depositing/withdrawing is at its target weight.

• The Base Tax is an increased fee for taking an Index token away from its target weight.

• The Protocol Fee is the percent of each fee (in GMI tokens) that goes to the Gloop multisig for liquidity providing at a later date.

See Pool Parameters for the current fee percentages. Also, you can go to the Fees section for further explanation.

How is the price of the GM Index token determined?

The total amounts held in the Banks of the underlying GM assets are multiplied by each asset's latest price (provided by oracles). These values are then summed into a total Index value variable. This value divided by the total GMI supply results in the current price of GMI.

What happens if the value of a token in the index changes?

When the value of a token in the index changes, the proportion of that token in the index may change as well. The index value will adjust accordingly based on oracle price updates.

Can I redeem specific tokens from the Index?

No, the index operates as a basket, so when you burn GMIndex tokens, you redeem a proportional amount of all underlying assets, not a specific token.

What happens if an asset in the Index becomes illiquid or delisted?

The core team will ensure the Index is holding liquid and active tokens. If a token needs to be removed or replaced, ample warning will be given, and the Index algorithm will calculate a rebalancing of token weights, and the Admin will set the new target weights in the Index.

How are rewards or fees handled within the GMIndex?

Any rewards or fees generated within the index (e.g., from staking or yield farming) are either reinvested into the index or distributed according to the protocol’s rules. This is managed internally within the contract.

How can I track the historical performance of the GMIndex?

We are always open for the community to help with things like a Dune Dashboard which tracks the historical price/performance of the Index.

How is liquidity managed in the GMIndex?

GM Index tokens are deposited into Token Bank contracts. These contracts hold the underlying GM assets, acting as the source for deposits and withdrawals.