GMX - Polygon

Proposals
48

I want to personally thank @Hamzah for his proposal. Polygon is doing integrations that few L1s or L2s have done before. Some of these integrations include:

  1. Facebook
  2. Instagram
  3. Reddit
  4. Disney
  5. Mercedes Benz
  6. Magic Eden

Most important to this proposal is the Polygon integration of Robinhood. The MATIC team have explicitly noted that dApp integration of GMX and the forthcoming Robinhood crypto wallet would be an impetus for protocol adoption and growth. In this, I believe they are correct.
Let’s look at the numbers:

  1. There are 1.5m users who have signed up for the Robinhood crypto wallet
  2. Robinhood has 15m active users who are potential Web3 users in the making
  3. On the day this proposal was made, Ethereum had only 300k active users.

In this regard, Robinhood integration could be massive. Not only could it help onboard new users to the blockchain, but it can also increase both OI as well as revenue from widespread access and adoption. I firmly believe that we should look to integrate with polygon POS or zkEVM to facilitate this integration.

Now to the bad. I see three problems with the current proposal, all of which can be mitigated fairly easily.

  1. stMATIC as collateral in GLP is a systemic risk at the moment due to our outstanding oracle issues (as demonstrated by the oracle manipulation on AVAX in September). Until this issue is fixed by the devs, to their satisfaction, MATIC or stMATIC as collateral would need to have strict limitations on trade size and actual composition of GLP (ie. 1-2% like UNI and LINK).
  2. Latency on POS is an issue. Network congestion can result in reverted trades and delays in order execution. Polygon needs to put forth a clear plan on how to mitigate these issues….OR, I’d recommend consideration of GMX for zkEVM launch in Q1 2023 rather than an earlier POS launch. GMX is a lynchpin of defi which can bring deep liquidity to any chain that it launches on. Launch on zkEVM would permit for super-fast order execution and encourage defi growth by acting as a defi primitive for additional protocols to launch around its ecosystem.
  3. The current GMX UI is terrible. Everyone knows im a GMX bull but this is the honest truth. Anyone who has ever used another perp platform knows that the UI needs stop loss orders and take profit orders at a minimum. Furthermore, we badly need synthetic integration to remain competitive with other perp platforms like GNS, Kwenta, etc.

I would propose the Polygon team and GMX community consider an addendum to the above proposal for the following:

  1. Delay launch of GMX until the current synthetic and UI integrations are complete for launch on the existing iterations on Arbitrum/AVAX.
  2. Plan for a Polygon POS or zkEVM launch in Q1 or Q2 after UI/synthetic integrations.
  3. Delay integration of any meaningful quantity of MATIC or stMATIC into a polygon based GLP until the current oracle issues are fixed to the satisfaction of X and the other devs. Once the oracle issue is fixed to permit GLP users to be safu, the amount of MATIC/stMATIC allocation can be adjust to a reasonable amount consistent with other chains like AVAX (10-15% allocation).
  4. Until launch on polygon, form a marketing partnership with Polygon in the meantime to help encourage existing GMX ecosystem projects like Umami, Plutus, Vendor, etc to ALSO support polygon integration so that deep liquidity can be assured from day 1.
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