Dolomite enables one-click gmBTC looping strategy for GMX fees

Dolomite, the decentralized money market protocol on Arbitrum, has been pushing its one-click gmBTC looping strategy as a way for users to multiply their exposure to GMX trading fees without taking on additional directional Bitcoin risk. The strategy has generated enough borrowing demand for Wrapped Bitcoin (WBTC) on the platform that lenders are collecting a 2.27% organic yield, with no token incentives or emissions sweetening the pot. How the loop actually works A user starts by holding gmBTC, which is a GMX V2 liquidity token tied to the BTC-USD trading pool. That token earns a share of the fees generated by trading, liquidations, borrowing, and swaps happening in that pool. Specifically, gmBTC holders collect 63% of those fees. On Dolomite, users can deposit their gmBTC as collateral, borrow WBTC against it, then convert that borrowed WBTC back into more gmBTC. Rinse, repeat. Each loop increases the user’s total gmBTC position, which means more fee exposure from the GMX ecosystem, while the net Bitcoin price exposure stays close to 1x. The “one-click” part is the automation layer. Instead of manually executing each step of borrowing, swapping, and redepositing, Dolomite bundles...