GMSOL: Bringing GMX V2 to Solana and realizing the trinity of decentralized leverage trading

Over the past two months, our team have completed the construction of the basic framework of GMSOL, guided by close communication with GMX Core Contributors and invaluable feedback from the community. By adopting the foundational model of GMX V2, we have successfully replicated all of its functionalities. To ensure the highest standards of security and reliability, GMSOL will undergo multiple rounds of audits before being officially deployed on the Solana network.

  1. GMSOL will operate as an independent project while maintaining a close relationship with GMX.
  • All value measurements and storage will exclusively utilize the GMX token.

  • Buyback mechanism for GMX will be implemented. A significant portion of fee will be allocated towards buying back GMX, consequently establishing the GMSOL Treasury. The GMSOL Treasury will be subject to the oversight of the GMX DAO.

  • GMSOL Points will be introduced. No pre-minting or pre-sale of GMSOL Points. GMSOL is built on the principles of complete transparency and fairness. The specific rules governing GMSOL Points will be disclosed prior to the official launch of GMSOL. The GMSOL Treasury will provide a robust value backing for GMSOL Points.

  • GMSOL does not necessitate any funds from VC, with all initial technical development and operational costs being covered by ourselves.

  1. GMSOL strives to achieve the Trinity of Decentralized Leverage Trading:
  • Barrier-free creation of GM Markets and GM Pools, enabling the trading of a wide range of assets on GMSOL. We anticipate supporting over 50 assets directly at the time of the official launch. Moreover, by leveraging the ultra-high-performance Solana network, we can effectively mitigate front-running risks. Subsequently, the deployment of additional markets will be straightforward for GMSOL, and users will benefit from reduced trading fees, potentially as low as 0.001 USD, along with an enhanced trading experience.

  • Barrier-free utilization of advanced trading strategies. We will endeavor to equip users with access to various mainstream trading strategies and tools available in the market while actively fostering a vibrant strategy development community. Consequently, on GMSOL, any trader can seamlessly transition into a professional by employing advanced trading strategies without the prerequisite of programming knowledge or incurring additional fees.

  • Barrier-free entry into market making is a key advantage of GMX V2. We firmly believe that the democratization of liquidity provision, as opposed to concentration among a select few institutions, is the most crucial cornerstone in our journey towards true decentralization. Instead of relying on closed-source market making strategies provided by GMSOL itself or specific partner institutions, we aim to avoid single points of failure while ensuring that GMSOL does not manage any user’s assets, represent any user’s interests, or have any potential conflicts of interest with any user, thereby avoiding all possibilities of malicious behavior.

  1. GMSOL aims to incentivize every potential participant in the community.
  • Regarding the development of GMSOL, beyond traders and LPs, we recognize the immense potential of talented developers within the community as a vital driving force. We aspire to adhere to the core values of Proof of Contribution and provide suitable incentives for developers and community members.

  • Any community member (including developers) can compile beneficial proposals for GMSOL into an issue list for developers to address. They can also initiate voting in advance. If the developments are successfully integrated into GMSOL, GMSOL Points will be allocated to reward the developers, calculated as a multiple of the net GMX_DAO votes. Furthermore, even if a community member has not directly participated in the development process but has put forth a comprehensive and effective requirement document, they will be entitled to an additional percentage of the incentives earned by the developers.

  • Whether you are a trader, LP, developer, or a community member with a unique perspective on GMSOL’s development, we all have the opportunity to contribute as X in our areas of expertise.

The comprehensive docs for GMSOL will be made publicly available prior to the official launch. To showcase our progress, we have developed a corresponding web-demo, and the demonstration is provided below. While the overall development is still ongoing, and certain details require refinement, I believe it is sufficient to proceed with submitting a proposal and initiating a vote based on the current state: Our application is straightforward and does not necessitate substantial financial support unlike similar proposals from competitors. Additionally, we do not require any supplementary incentives.

Our sole request is for the GMX DAO to cover the potential audit fees of GMSOL, as well as grant a license for the replication, use, and front-end code.

Q

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I will do my best to become the chief customer service officer of GMSOL. In this proposal, I hope to explore the vast possibilities of GMSOL together with GMX community members. I will strive to answer every question. This will be an exciting journey, and it will also be a journey that belongs to each and every one of us. I look forward to everyone’s feedback.

Q

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For further Q&A - GMSOL

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how do we make sure it doesn’t turn into something like unibot/trojan?

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This is incredible. So happy to see how this turns out and becoming the premiere place to trade on Sol

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Incredible work, cant wait for the launch!

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In the case of unibot/trojan i believe there were multiple tokens involved, while there will be no new token and GMX will be primary beneficiary

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Wow, this guy never ceases to amaze…

I’m in favor of this request.

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Seems like a slam dunk

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Loving the vision, and I believe in your ability to execute it faithfully. Let’s do this.

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Love this! I’m working with a team building a similar model based on GitHub - askibin/perpetuals: Solana Perpetuals Exchange. It’s in stealth and close to launch. Would love to chat more with you about what you’re thinking and get your feedback on the project. @sigma_ventures on tg

I think your question is excellent, Wazi!

GMSOL adopts the foundational model of GMX V2 but will innovate in a different direction than GMX. We firmly believe that only continuous innovation can truly drive development. However, we also know that innovation inevitably involves many risks and the possibility of failure.

As an independent project, GMSOL ensures that if it achieves rapid development, GMX can not only acquire GMSOL’s innovations at zero cost but also receive significant support from GMSOL’s fee mechanism. At the same time, it avoids the potential negative impact on GMX if GMSOL experiences a devastating failure. In other words, GMSOL may fail, but we must ensure GMX’s success.

Regarding your question about whether GMSOL will split GMX from within, I have three perspectives:

  1. GMX operates on the EVM mechanism, while GMSOL is entirely different, so there is no direct competition in this aspect.
  2. GMX can easily expand horizontally to more EVMs, while GMSOL does not have this capability.
  3. We are top holders of GMX, so our interests are highly aligned.

Moreover, from the disclosed information, you may easily discover that we are purely driven by vision. The main reason for developing GMSOL is that I, as a community member, have had enough of the status quo where GMX V2, despite its great innovation and infrastructure, has only had 10 trading pairs for a long time and has not expanded to more chains due to objective factors. In fact, we also have the ability and conditions to develop on EVM, but we still chose the more challenging Solana to open up more possibilities and space for GMX.

Here are some interesting background details about the proposal and development of GMSOL that I’d like to share with everyone, so you can better understand the great person leading GMX’s development:

  1. When I suggested deploying GMX-Solana and handing it over to the community, X encouraged us to have maximum freedom in our innovation and to name the project GMSOL.
  2. I offered to directly pay for the audit fees, but X suggested that we propose having the GMX DAO cover the costs, subject to passing a vote.
  3. Although I proposed using GMX’s economic model, X gave us complete freedom to design our own, while also offering to provide ample suggestions to help us.

As a member of the GMX community, everyone must be proud to follow such a leader. X grants the GMSOL great autonomy and support, encouraging bold innovation while always keeping the project’s best interests in mind and offering valuable suggestions. This is exactly the image of an ideal leader: giving the team the freedom to create and strive while providing necessary guidance at critical moments.

Being able to contribute to an outstanding project like GMX and witness its continuous growth under X’s leadership must also be exciting and a source of pride for me personally.

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First of all, thank you Q for being so big brain and working tireless with GMX long term vision. We are fortunate you are in GMX community

My humble hope is that fees would be distributed to gmx stakers rather than buy back gmx tokens. :slight_smile:
It would be great to have a new chain fee paid to gmx stakers…. Damn good optics too.

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To be honest, I don’t oppose adding GMSOL fees to GMX Stakers, but since we already have real yield, why don’t we try incremental buybacks without affecting the current basis? In addition to real yield, GMX can also serve as a buyback token, governance token, and global liquidity token. This might be an attempt worth trying.

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Incredible work. Launching in Solana is much better than Base or Polygon.
Thanks for your working, Mr Q.

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Thanks for all the work you put in to! Some questions.

  1. How would you plan to bootstrap on Solana? The competition would be fierce given Jupiter’s dominance in the space. Re GMSol point’s effectiveness. For most projects, points in one season entitle them to around 5-10% of total token supply. But in this case it’s only backed by treasury so may not appear that attractive to SOL users.
  2. How do you implement the buybacks? As fees are generated on Solana network and GMX token is on Arbitrum. What crosschain/bridging solutions would be utilized.

Totally understand that details are still rolling out. Again appreciate your work!

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Hi Luke, first of all, thank you very much for raising these valuable questions.

Firstly, about Jupiter, it is undeniable that this is a good product and is currently in a leading position on Solana. The mechanism is similar to GMX V1, while we have the full support of GMX to bring GMX V2 to Solana, so the development direction is different.

Secondly, if necessary, we can also bring GMX V1 to Solana, which is not difficult for us, and may even be necessary, especially since we may launch a large number of GM Markets. The categorized GLP mechanism could provide good support for these small markets, meaning V1 and V2 can coexist within GMSOL.

As for the Points incentive, it’s hard for me to say which is good or bad, as each product has its own unique nature. Regarding the detailed documentation on Points, we expect to release it after the audit is completed, which is before the official launch. I hope it will help you better understand our Points design.

Regarding buybacks, your question is crucial. I have also discussed this issue with X. We need to push in two directions: one is to communicate with some designated bridges to allow GMX tokens to come to Solana; the other is that based on the liquidity situation, we may need to transfer funds back to Arbitrum for buybacks. In any case, the GMSOL Treasury address will be public and will be placed on the corresponding GMSOL page, and any user can supervise every activity of the GMSOL Treasury.

Thank you again for your questions. If you have any other doubts, I would be happy to answer them for you.

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Really excited for this proposal and massive respect for attempting this. Between SOL and hopefully more to come EVM deployments, GMX could become the home of liquidity on most relevant chains in the future.

Just a couple of questions surrounding the audit, since the DAO may vote to fund it:
What timescales are you looking at to start the audit?
How will the auditing firm be selected? Is this something you also propose to put to the DAO or do you have one in mind?

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really impressed with this one

thank you Q for making this possible and showing your support to the GMX project, fortunate to have you in the community! :handshake: :fire:

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Hi Heinz, thank you very much for your question.

Yes, I agree with your view that GMX could become the home of liquidity on most relevant chains in the future. This is also why GMSOL does not issue its own token. We hope to attach more value and functionality to GMX, giving it the opportunity to become a global liquidity token, whether on Arbitrum, Solana, or more networks.

In addition to having real yield, we hope that GMX will also have buyback capabilities and serve as a governance token, while also being a global liquidity token. I want to further explain the concept of a global liquidity token. As you can see, the current ss pool is based on BTC and ETH, and on GMSOL there may be a large number of ss pools based on SOL. The reason is that BTC, ETH, and SOL are currently the tokens with the best liquidity consensus, so many users hold BTC, ETH, and SOL and use them as a basis for providing liquidity and as collateral for trading.

GMX is no different from BTC, ETH, and SOL in this function, but there is a significant problem in that GMX’s liquidity is relatively thin, and few people may be willing to use GMX as collateral or for yield settlement. An obvious example is, if you long BTC and earn 10m USD, would you prefer to receive 10m USD in USDC, BTC, ETH, SOL, or would you prefer to receive 10m USD in GMX? Obviously not GMX.

To this end, we may have planned a very long-term implementation path, including GM GMX Market, SS GMX Pool, and GMX Magnet, which I have not formally proposed on gov.

As for expanding to other EVM chains, it is not a difficult task for GMX Core Contributors. I think it’s just a matter of continuing to deeply evaluate the potential attack issues that EVM cross-chain may bring, which requires in-depth research and resolution. During the development process of GMSOL, a lot of effort was spent on building various attack models against GM Pool to test its performance under various conditions.

The issue of auditing depends on the development progress. We are currently only implementing all the basic functions of GMX V2, and still need to further implement the innovative functions of GMSOL, so this is uncertain. Regarding auditing institutions, we are also communicating with GMX Core Contributors to contact mainstream auditing institutions. Once the auditing institution is determined, we may supplement the information and initiate a vote.

Multiple rounds of auditing are what enable GMX to become one of the most trusted protocols in Defi. We also hope to inherit this advantage and make no compromises on security. We also hope that everyone will be patient with the audit, as this will be a very long-term matter.

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