In response to the proposal for Buyback GMX, the D2 Finance team strongly supports this idea for the following reasons:
GMX++ Vaults
We are excited to announce that with the implementation of this proposal, we will be able to release GMX++ vaults. As soon as Dolomite allows lending on GM GMX, we will offer a vault with GMX exposure that will earn additional GMX.
With our monthly epoch, it has been challenging to fully benefit our users with the GMX multiplier system ( we have been traded GMX in our vaults just in just spot format).
This change will completely transform our approach and allow us to introduce another vault on top of GMX, enhancing our users confidence to deposit.
Positive Impact on $GMX Price Growth in the Long Run and Help Allocation of Other Vaults like ARB++
Since GMX++ is primarily exposed to GMX, healthy price growth of teh underlying is crucial. Implementing a buyback feature that creates consistent buying pressure for GMX tokens, instead of minting new ones, is essential. Utilizing the ETH reward for GMX buybacks could positively impact GMX++ by providing a reliable onboarding mechanism.
Our “vaults of vaults” structure, such as ARB++, will be able to purchase GMX++ in larger quantities, knowing there is constant buy pressure.
Increased Exposure of $GMX in the Open Market
Maintaining consistent purchasing volume can enhance liquidity, which is fundamental for our monthly epoch system. Enhanced liquidity will support the stability and growth of our GMX++ and other interconnected vaults.