DeltaPrime will foster growth within the GMX ecosystem in three ways with this grant:

GM Liquidity
DeltaPrime finished integrating its first GM pools on November 27th. This grant will be used to provide bonus APY on top of the existing yields, for every borrowed dollar that provides liquidity to these pools. This does a couple of things:

New users
Undercollateralized borrowing can, with the right integration, lead to sky-high APYs. Where usually these leveraged positions get their real APYs nuked due to impermanent loss, with DeltaPrime’s borrowing system and GMX v2’s synthetic system, you can design your own exposure. So while you could choose 4x exposure on the underlying assets, you can also choose to go quasi (due to counterparty risk) delta neutral.

Quasi delta neutral + sky high APY attracts new users to GMX increasing the size of the pools.

Existing users
This delta design also allows GMX users to safely increase their existing positions. GM can be imported in the Prime Account straight from the wallet, after which users can directly borrow with their desired risk profile.

One liquidity provider providing $1mm to BTC-USD can in a few clicks provide an additional $1mm to ETH-USD and $1mm to ARB-USD, without taking on additional price risk. This way GMX’s users get the most of the platform, and the platform gets the most out of them.

GLP transition
Currently, DeltaPrime users on Arbitrum own a total balance of $870,229 in GLP. For these users, DeltaPrime will implement a new ZAP function. As one of these holders, you can soon migrate your GLP with one function (and a couple of transactions acceptations) by selecting the GM pools you would like to get exposure to instead. All within the Prime Account. By routing more funds from GLP to GM, liquidity on GMX will be used more efficiently, leading to faster and stabler growth of the platform.