Distribution Plan
Thank you to all community members and delegates who participated in the Snapshot vote about the Distribution plan for recovered funds from Arbitrum GLP.
A majority of the participating tokenholders chose the Distribution Plan consisting of GLV Distribution + a top-up from the Treasury + 500k incentives.
This decision means:
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The distributed amounts will be split between the two Arbitrum GLV tokens, resulting in the users receiving approximately 25% WBTC, 25% ETH, and 50% stablecoins — closely mirroring the original GLP composition.
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Long-term GLP holders will therefore maintain similar exposure to their original positions, allowing them to continue earning during the claim period and beyond
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The DAO has contributed an additional $2 million from the Treasury to assist in covering the shortfall from the security incident.
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$500,000 in GLV will be purchased and distributed to impacted users who claim and hold their GLV for three months. This distribution is a thank you for their continued support of the DAO.
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GLV can be redeemed immediately, without lockup or vesting; however, users who redeem the GLV within the first 3 months will not receive a share of the additional $500k distribution.
As the next step, users impacted by the disclosed vulnerability in the Arbitrum GMX V1 deployment will soon have access to their distribution of GLV tokens. These GLV tokens will be claimable by GLP holders through an easy-to-use claim contract hosted on the Stake page of the dapp. Claiming from the distribution contract will include signing an on-chain transaction releasing the GMX DAO and affiliates of further claims.
Meanwhile, DeFi protocols that offer products based on GLP and require customised solutions as their contracts can’t directly claim will be handled separately. These protocols will subsequently announce how the distribution to their affected users will be handled. We appreciate your patience while these tailored solutions are being developed.
Additionally, the GLP tokens held by the whitehat who uncovered the vulnerability will be burned, which will proportionally result in those funds being redistributed to GLP holders.
List of eligible accounts and distribution amounts
The list of eligible accounts is available here: https://dune.com/queries/5535631?sidebar=none. This list includes both externally owned accounts (EOA) and smart contracts.
The GLP price used for the distribution calculations is $1.4522064768, which corresponds to the price at block 355880236.
To streamline the distribution and accounting process, the contributors have excluded LPs that held less than $1 worth of GLP at the time of the event. There are almost 400k such holders, accounting collectively for approximately $20k.
Users who sold their GLP after the vulnerability was disclosed will also receive a distribution of GLV. They will claim their share of the $42m distribution from the claim contract.
In the first round of distribution, the funds will be distributed to EOA’s and gnosis safes that can directly interact with the claim contract. Integrations will be addressed separately, as mentioned above.
The distribution page isn’t live yet. Once it goes live, affected users will be able to claim it over here: GMX | Decentralized Perpetual Exchange
Example of GLP User Claim Process
If you were holding $10,000 worth of GLP, you would claim about $4,575 worth of GLV [WETH-USDC] and $4,575 worth of GLV [BTC-USDC] as part of the distribution, while $850 residual funds can be withdrawn from the GLP pool.
For example, Anne held $10,000 in GLP. She continued to hold her GLP during and after the event. She will claim approximately $9,150 in GLV from the claim contract, split between GLV [WETH-USDC] and GLV [BTC-USDC] liquidity tokens. And she will withdraw from the GLP vault for the remaining ~$850.
Boris held $20,000 in GLP. He sold all his GLP when he heard about the vulnerability. Boris will claim the remainder (worth approximately $18,300) in the form of GLV from the claim contract, divided into GLV [WETH-USDC] and GLV [BTC-USDC] tokens. Since the residual funds in GLP were already withdrawn by Boris, there is nothing more for him to withdraw.
Clarice held $500 in GLP via the yield optimisation protocol Beefy Finance, which integrates GLP. She will also receive GLV as part of the distribution plan for affected users. However, she will not use the claims contract. Instead, she will wait for an announcement from Beefy about how the distribution to their users will be handled.
Please note: All numbers are approximate and for illustration purposes only. The values of GLP and GLV are volatile, and actual values at the time of claim and/or redemption may vary depending on the state of the vaults and the assets within them.
~$44M is available for distribution — All impacted GLP holders are being made whole
