Gloop Review 2026: GMX GM Index and Lending on Arbitrum

Gloop is a DeFi suite on Arbitrum with two products. The first is an index token protocol that lets users invest in a basket of GMX liquidity providing assets, known as GM tokens. The second is a lending protocol where users deposit GM tokens as collateral and borrow USDC.

DefiLlama lists Gloop under Lending, with a TVL of about $27,197 and a 7-day change of 1.0%. It has been listed since 5 August 2025, has a GLOOP token and shows two audits. These numbers show a very small, young protocol.

Its homepage available is minimal, so this review relies mainly on the DefiLlama description. Details such as fees, collateral ratios and team information are not published publicly.

Gloop builds on GMX, a perpetuals exchange whose liquidity providers hold GM tokens. Each GM token represents a share of a GMX market pool and its value moves with trader activity and the underlying assets.

The index product holds a basket of GM assets. Its Index contract calculates the weights of each asset and lets users mint index tokens by depositing, then burn or redeem them to exit. This gives exposure to several GM pools through a single token.

The lending product lets users deposit GM tokens as collateral and borrow USDC. If the collateral value falls too far against the loan, positions are usually liquidated, which is standard for overcollateralized lending. Gloop's exact parameters are not public.

Fees are not published. This covers mint and redeem fees on the index tokens, borrow interest rates on USDC loans, and any protocol fee or liquidation penalty.

Users should check the app interface before transacting, where rates and costs would normally be shown, and read the project documentation. Normal Arbitrum network gas costs also apply.

DefiLlama lists two audits, but the auditors, dates and findings are not given publicly. Audits reduce but do not eliminate smart-contract risk, especially for a young protocol.

Risks include smart-contract bugs, GM token price swings, liquidation during volatile markets, oracle dependence, and the added risk layers from GMX itself. With TVL near $27,000, liquidity may be thin, so large positions may be difficult to exit. Custody is self-held through your wallet. Regulatory status and any incident history are not stated.

Gloop is for experienced DeFi users on Arbitrum who already understand GMX GM tokens and are comfortable with the risks of small, early-stage protocols. It is not suited to beginners or anyone who needs deep liquidity.