| GM pool | Weight in GLV (%) | Pool APR (%) | Pool max drawdown (%) |
|---|---|---|---|
| ETH/USD | |||
| DOGE/USD | |||
| NEAR/USD | |||
| ATOM/USD |
Why GLV risk isn't a weighted average
A GLV basket's expected drawdown is not the weight-averaged sum of each GM pool's own drawdown — that number (shown below as "naive concentrated risk") assumes every pool moves against you at the same time, which only happens if pools are perfectly correlated (ρ=1). Real GM pools on different underlyings rarely move in lockstep, so the actual portfolio-level risk is lower. This calculator uses σ_p = √(Σwᵢ²σᵢ² + Σᵢ≠ⱼ wᵢwⱼσᵢσⱼρ) — the same variance formula used for any multi-asset portfolio — to size the real diversification benefit of holding the basket instead of one GM pool directly. See perp vault LP risk for the single-vault yield-vs-drawdown framing, and LP rebalancing cost for what active rebalancing itself costs.
How GLV actually allocates and rebalances
GMX Liquidity Vaults (GLV), live since September 2024 on Arbitrum and Avalanche, sit one layer above the individual GM pools that back GMX v2 perps. Each GLV — for example GLV [ETH-USDC] — is an index over every GM market that shares its collateral pair: ETH/USD, DOGE/USD, NEAR/USD, ATOM/USD and others. The vault doesn't hold fixed weights. Chaos Labs-recommended allocation logic shifts capital toward GM pools with high open interest and tight available liquidity, and away from pools sitting idle, so the composition you see on-chain today (often 55-70% concentrated in the largest market, the rest spread thin across smaller ones) can look meaningfully different a month later.
That matters for depositors because a single GM pool is a concentrated bet: 100% of your capital eats that one market's price-impact swings, funding skew and directional demand shocks. GLV spreads the same capital across pools whose price action isn't perfectly correlated — ETH/USD and DOGE/USD don't necessarily draw down together — so the basket's realized volatility comes in lower than a naive weighted average of the parts would suggest. The gap between that naive number and the real, correlation-adjusted number is the actual value GLV adds over picking one GM pool yourself, and it's exactly what this calculator isolates.
The other side of GLV is that rebalancing isn't free. GMX applies dynamic swap-style fees on deposits and withdrawals to steer flow toward the vault's target allocation — depositing into an already-overweight pool costs more than depositing into an underweight one. Over time that fee structure nudges the blended APR you actually realize away from the simple weighted-average APR shown on most dashboards, which is why the target-weight drift is worth checking before assuming the headline number holds.