ARB Subsidy for V2

V2 is about to launch, and I believe it’s an excellent product that traders will fall in love with once they start using it. Thus, it’s essential to motivate traders to use it for the first time. Our direct competitor is CEX, and traders highly value the trading fees, so I propose that in the initial stage of V2’s launch, we set aside a portion of ARB to incentivize traders, such as for buying or selling behaviors. The fee rate for such behaviors is approximately 0.05%, and we could use a suitable amount of ARB to subsidize these costs, making the actual fee rate around 0.02%, similar to or even lower than the rates for derivative trading on Binance or other major DEXs. By lowering the actual transaction fees, we allow traders to enter GMX at a lower threshold and retain them with the excellent user experience offered by V2, thus enabling GMX to achieve greater prosperity. Specifically, we could set a fixed amount of ARB to be used for these subsidies, and stop this incentive-based promotion once the subsidies are completed. I present this proposal for discussion and decision-making by the core contributors and community users.


Trading fees will already be lower than on V1, so the effect may be limited. Particularly because volume is highly tied to wider market volatility, which is at its lows at the moment. But it could be considered from a promotional point of view…

1 Like

I think this is an important topic to bring up. Many new protocols that have been taking some of GMX’s market share in the per DEX space are doing so using incentives or promotions. While this may not be sustainable long-term, they allow for the acquiring of users who will then stay simply due to their familiarity with the project.

To reassert GMX’s dominance, we can incentivize trading by paying for fees using our $ARB holdings or host some sort of competition which can result in an $ARB distribution. This may also be something we want to consider when it comes to GMX v2 expansion to other chains.

1 Like

100% agree with you.