Strategy Overview

GoldLink's inaugural strategy, GMX Funding Rate Farming, capitalizes on the unique dynamics of funding rates in perpetual contracts. In essence, funding rates ensure alignment between futures and spot prices, allowing traders to leverage without directional exposure.

On GMX, GoldLink borrowers have the opportunity to farm funding rates by deploying short positions when long open interest surpasses short open interest. Leveraging GoldLink's borrowing capabilities, borrowers can access additional capital from the lending pool to deploy short positions, fully collateralized by spot positions in the same market. This approach effectively mitigates directional exposure while maximizing yield potential.