GLV Liquidity Pool
Overview
GSOL introduces a Global Liquidity Vault (GLV) as the core liquidity layer for perpetual trading.
Instead of fragmented liquidity across multiple pools, GSOL aggregates all liquidity into a single unified vault, which is dynamically allocated across supported perpetual markets (e.g., BTC, SOL, ETH).
This design ensures:
Deep and consistent liquidity across all markets
Efficient capital utilization
Simplified liquidity provision for users
How GLV Works
Users deposit assets into the GLV and receive a proportional share of the vault.
The GLV then allocates liquidity internally across different markets through a virtual allocation system.
User Deposit → GLV → Allocated to Markets (BTC / SOL / ETH)Each market operates with its own internal accounting, allowing GSOL to manage exposure and risk independently while maintaining a single liquidity source.
Liquidity Provider (LP) Incentives
Liquidity providers earn yield from multiple sources:
Trading fees from perpetual positions
Funding fees between traders
Price impact fees from imbalanced trades
LP performance is directly influenced by trader PnL — LPs benefit when traders incur losses and vice versa.
Risk & Allocation Model
GLV liquidity is distributed across markets using a combination of:
Base allocation (predefined distribution per market)
Dynamic adjustment (based on demand, volume, and risk conditions)
This ensures balanced exposure and prevents over-concentration in a single market.
Risk Engine
GSOL integrates a multi-layered risk engine to protect liquidity providers and maintain system stability.
Open Interest (OI) Cap, Limits the total position size that can be opened per market.
Funding Mechanism, Balances long and short positions.
Dynamic Fees (Price Impact), Adjusts trading costs based on market imbalance.
Position Limits, Restricts the maximum size per position.
Reserve Factor, Limits how much of the GLV can be used to back open positions.
PnL Factor Cap, Caps the impact of unrealized trader profits on vault valuation during deposits and withdrawals.
Early Liquidation, Triggers position closure before full insolvency.
Auto-Deleveraging (ADL), A last-resort mechanism activated during extreme market conditions.
Oracle-Based Pricing, All positions and orders are executed using external oracle prices.
Keeper-Based Execution, Orders and liquidations are executed by decentralized keepers.
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