## Adding Liquidity to GMX V2 GLV Vaults: A Step-by-Step Guide This lesson details the process of adding liquidity to a GMX V2 GMX Liquidity Vault (GLV), specifically using a single token like USDC. We will contrast GLV Vaults with GM Pools and explain the mechanics involved. **Understanding GM Pools vs. GLV Vaults** Before proceeding, it's crucial to understand the distinction between GM Pools and GLV Vaults within the GMX V2 ecosystem: * **GM Pools:** These are liquidity pools designed to facilitate trading for a *single* market (e.g., ETH/USD, BTC/USD). The tokens backing a specific GM Pool are typically listed alongside its name (e.g., [BTC-USDC]). Users providing liquidity directly to a GM Pool receive GM tokens representing their share of that specific pool. * **GLV Vaults:** These are yield-optimized vaults that enable trading across *multiple* markets simultaneously. A GLV Vault essentially acts as a curated "basket of GM tokens" from various underlying GM Pools, as defined by the GMX protocol. Examples include GLV [BTC-USDC] or GLV [WETH-USDC]. **Key Relationship & Implications:** Depositing into a GLV Vault means you are gaining exposure to the collection of underlying GM Pool tokens held within that vault. Consequently, depositors earn fees and yield generated from the underlying pools *but are also exposed to potential losses* incurred within those same pools. The GLV Vault diversifies exposure across multiple markets but also aggregates the risk from them. **Prerequisites:** * A connected web3 wallet (e.g., MetaMask). * The token you wish to deposit (in this example, USDC) available in your wallet. **Step-by-Step: Adding Single-Token Liquidity to a GLV Vault** Let's walk through adding USDC liquidity to the GLV (BTC-USDC) Vault: 1. **Navigate and Select Vault:** Go to the GMX V2 interface section displaying available liquidity options (often labeled "Earn" or similar). Locate the "Select a GLV Vault" section. Identify the target vault, for instance, GLV (BTC-USDC). Click the "Buy" or "Deposit" button associated with this vault. 2. **Understand the Vault Interface:** You will be directed to the dedicated page for the selected GLV Vault (e.g., GLV [BTC-USDC] GMX Liquidity Vault). * **Composition:** Note the "Composition" section. This area lists the various underlying GM markets/pools that the GLV Vault holds liquidity in (e.g., DOT/USD, HYPE/USD, ICP/USD, BTC/USD), along with their respective Total Value Locked (TVL) and percentage weight within the vault. This visually confirms the "basket" nature of the GLV Vault. 3. **Initiate Single Token Deposit:** * Locate the deposit interface, often presenting options like "Single" and "Pair". Select the "Single" option. * From the "Pay" or "Deposit" dropdown menu, select the token you wish to add. In this case, select USDC. Your available balance will typically be displayed. * Enter the amount of the token you want to deposit. You can manually enter a value or use a "MAX" button if available. 4. **Select the Target Underlying Pool (Crucial Step):** * After selecting the token and amount for a single-token deposit, a "Pool" or "Target Pool" dropdown menu will appear. * **Mechanism:** When depositing a single token (like USDC) into a multi-asset GLV Vault, you must specify *which* underlying GM Pool within the vault's composition this liquidity should be added to. The system does not automatically distribute a single token deposit across all underlying pools. * **Action:** Use the dropdown to search for and select the specific underlying GM Pool you want your USDC to enter. For the GLV (BTC-USDC) vault, if your goal is to provide USDC liquidity against Bitcoin, you would select the **BTC/USD [BTC-USDC]** pool. * **Outcome:** By selecting BTC/USD, your deposited USDC will be added specifically to the BTC/USD GM Pool. In return, a corresponding BTC/USD market token (GM token) is minted. The GLV (BTC-USDC) Vault takes ownership of this newly minted GM token, effectively adding your liquidity contribution (via that specific market token) to its overall basket. 5. **Execute and Confirm Transaction:** * Click the "Buy GLV" or "Deposit" button. * Your connected wallet (e.g., MetaMask) will prompt you to confirm the transaction. Review the details and approve it. * Wait for the transaction to be confirmed on the blockchain. You should see confirmation messages on the GMX interface (e.g., "Buy request sent," "Buy order executed"). 6. **Verify the Result:** * Navigate back to the main page listing the GLV Vaults. * Locate the GLV Vault you deposited into (e.g., GLV [BTC-USDC]). * Check the "Wallet" or "Your Balance" column. It should now reflect an increased amount of GLV tokens, representing your newly added liquidity share in the vault. **Key Takeaways:** * GLV Vaults offer diversified exposure to multiple GMX V2 markets by holding a basket of underlying GM Pool tokens. * Depositing into a GLV Vault exposes you to both the profits and losses of the underlying GM Pools it holds. * When performing a *single-token* deposit into a GLV Vault, you must explicitly select the target underlying GM Pool for your funds. * The GLV Vault manages the underlying GM tokens generated from deposits; users receive GLV tokens representing their overall share in the vault.