Wanted to thank the community for the great dialogue and wide-ranging feedback. Hope everyone can also take some time also to share your thoughts on our wider treasury swap strategy (Partnerships) which will help us in shaping the way we communicate and structure treasury swaps going forward.
Below are some clarifications and reconfirmations regarding the Rage Trade treasury swap for everyone’s consideration when deciding how you will vote when this proposal comes up to vote.
-
Was the lack of support the reason a core contributor did not post the original swap proposal? No, we had requested Rage to post themselves (and where possible will be asking other protocols as well), this way the representatives from that protocol are clearly identified and directly engage the community. Separately to avoid confusion X and I as contributors have shared our own reasoning and confirmed this reflects our prior discussions with Rage through noodles.
-
The treasury swap is conditional on the audit and launch of Rage’s GLP delta-neutral vault on Arbitrum main-net. This is targeted for Q4 2022.
-
esGMX that Rage receives from the swap will be deposited in this delta neutral strategy and 100% of the yield is going towards vault depositors. This bootstraps the vault with boosted yields while also creating a long-term incentive for Rage to iterate and build (given the baked-in incentive). GMX as a long-term staker of rage tokens has similar incentives to support the vault.
-
The 5k esGMX deployment is targeted and has the potential to deliver greater value against the 1.0m esGMX that has been directed at the Arbitrum GLP to date and the 100k being directed from September - December 2022.
-
The vault is additive to GLP’s liquidity as it opens us to depositors seeking delta-neutral yield and the broader Rage community. Rage will enable end users to deposit multiple assets (USD, ETH, GLP etc) which will broaden the potential growth of GLP. through increased utility and overall depth of liquidity; reinforcing the largest non-stable liquidity pool in DeFi but also as a base layer for other protocols.
-
In the view of the contributors handling partnerships, this swap creates much better alignment than short-term liquidity incentives. While both help to bootstrap initial liquidity, incentives lack the alignment created for long-term support of the vault or the gained alignment between two protocols building on Arbitrum.
Without getting too philosophical, as GMX has built from the strength of our community and the ideas we collectively created, we now need to expand our thinking of community to include a wider range of protocols, partners and collaborations. Our token emissions weren’t designated simply for marketing but for marketing, partnerships and community developers; a reflection of the way that GMX can grow, not by having a large team but by collaborating and having more people build on and with GMX.