GMX <> GMD Protocol Proposal

Proposals
1

The Introduction
GMD Protocol is a Yield Aggregator that uses smart vaults with delta-neutral and pseudo-delta-neutral strategies built on top of applications such as GMX, and other real yield generators on other protocols, to optimize yields for GMD Protocol’s token holders.

The Proposal

We are aiming to complete an OTC swap between GMX and GMD Protocol of $80,000 worth of esGMX for $85,000 worth of esGMD (GMD on Arbitrum) and esAGMD (GMD on Avalanche):

  • The $85,000 will be split into $42,500 worth of esGMD, and $42,500 worth of esAGMD
  • The amount of tokens to be swapped will be determined by the 30-day-trailing trading price of the token on the day of the swap.
  • GMD Team is readily giving GMX a $5,000 discount for this swap to compensate for the additional volatile nature of $GMD compared to $GMX, and as a sign of goodwill.

The Usage:

The esGMX and esGMD swap will take place as follows:

  • 100% of the esGMX and esGMD will be immediately staked into the respective vaults by both parties.
  • 100% of the esGMX and esGMD will be staked by both parties for at least 2 years from the moment of the swap.
  • Each protocol will hold the respective tokens in their treasury indefinitely. After 2 years, a review of the tokens will be considered to see if changes in tokenomics/functionality warrant a reconsideration of the terms to hold the respective tokens indefinitely.
  • Neither protocol intends to vest their esGMX/esGMD in pursuit of the abovementioned point of indefinite holdings in the spirit of long-term interest alignment

For GMD Protocol, the yield generated by the esGMX will be used for the following purposes:

  • 50% of the yield generated from the esGMX will be used for The GMD Reserve, which will increase GMD’s GLP Vaults performance and safety, which, in turn, will increase usage, adoption, and liquidity of GLP.
  • The remaining 50% will be used strictly for building a GMD Vault that integrates into GMX’s Synth Markets, once Synth Markets are live. The fund can be used for, but not limited to, the following purposes:
    • Vault Development Expenses
    • Marketing Fees
    • Team Administration Expenses
    • Auditing Fees

GMD Protocol’s Future Synth Markets Adoption:

The increased trust and marketing boost gained from this treasury swap will help put GMD in a great position to quickly and effectively build and introduce vaults based on GMX Synth Markets.

This token swap will allow GMD to prepare for and prioritize GMD Products for GMX Synth Markets, which will be effective in helping to promote user adoption of GMX.

The Main Goal:

GMX Synth Markets is essential to GMD Protocol’s future product development of an additional Delta-Neutral Vault. As such, we believe this integration and the trust granted to us through this swap by GMX will be vital to our development process of a functional vault on GMX Synth Markets.

GMD Protocol has so far proven itself by rolling out products quickly and effectively, and we believe this integration between the two protocols will vastly improve our capabilities and trustworthiness.

19 Likes
2

very interesting to see a delta-neutral focused protocol prepare for Synth integrations

great to see another community-focused project approach GMX governance with a neat proposal

2 Likes
3

Nice to see an integration with GMX’s upcoming synthetic Markets being explicitly included in the proposal. Thanks for bringing this to the DAO for discussion!

3 Likes
4

Yes for the Integration

5

Yes yes yes and yes! LFG GMD x GMX

6

I fully support this proposal and the continued development of the GMX x GMD co-operation :pray:

7

If the liquidity of GMD trading is low. Its prize can be easily manipulated therefore do we need higher buffer for valuation of GMD?

8

yes for the protocol interegation

9

Hi this is my first reading GMD, allow me to ask some simple questions.

  1. the proceeds from GMD tokens purchase (presales or public) are used 75% to buy GLP and 25% to provide liquidity pairs such as GMD-ETH on AMM. Am I correct?

  2. Following on item 1. that means none of the proceeds are actually used for team funds, so to speak?

  3. Why would USDC, ETH, BTC holders single-stake with GMD when they can stake directly with GMX and earn twice the yield, because based on GMD gitbook, half of the GMX proceeds will be taken away.

1 Like
10

GMX is looking to become a big project, allready evolving everyday. the new proposal shows decentralization. Great job team!

11

Firstly, yep, none of the proceeds are planned for team funds.
Secondly, nope, you cannot single-stake USDC, ETH, and BTC directly on GMX. You can only do so on GMD

12

Hey,

I like this proposal a lot.

The proposal aligns with @coinflipcanda’s December “partnership” proposal and achieves the goal of diversifying the GMX treasury while integrating new partners. Few questions:

  • Did the December STFX swap pan out?
  • Is there a dashboard to track swaps yet? Know it was in the works.

If the community votes yes on the proposal, would love to discuss whether it would make sense to use SIZE which is a protocol for on-chain OTC. [disclaimer, cofounded SIZE]. :slightly_smiling_face:

Thanks,

Nic

13

For item 1) we talked, is it the two below to a total of 26,000 GMD below?

  • 17,000 $GMD locked as $esGMD. Those will be used to OTC swap for partnership tokens/ long-term investors through several rounds of funding.

  • 9,000 $GMD will be used to add liquidity on Uniswap V3 and partnered decentralized exchanges on Arbitrum.

How does this tally with below, as the ratio doesn’t match

  • 75% of the initial mint will be converted into GLP

  • The other 25% will be used to form Uniswap V3 protocol-owned liquidity for receipt tokens(gmdUSDC, gmdETH, gmdBTC), allowing users to enter/exit their vault positions when unstake is disabled.

3 Likes
14

Strongly Agree. I love both protocols.

1 Like
15

I like it too. :lying_face: gmx is going up or down?

1 Like
16

GMD is starting to get some great traction. Gives me grail vibes but who knows.