GMX V2 Deployment on MegaETH - Proposal

Proposals
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Proposal Overview

This proposal seeks to gauge the GMX community’s interest in deploying GMX V2 on MegaETH — positioned as the Ethereum Layer 2 designed to unlock ultra-low latency trading experiences. This proposal outlines the deployment of GMX V2 on MegaETH’s innovative infrastructure while exploring the potential for specialized trading experiences that leverage MegaETH’s unique technological capabilities.

If this proposal is approved, it will allow contributors to take the necessary steps towards deploying on MegaETH, coordinate with ecosystem projects and their foundation for a successful rollout, and position GMX as an active participant in ecosystem programs.

Summary & Strategic Context

GMX is a leading decentralized exchange renowned for its deep liquidity, fair and transparent execution, and focus on permissionless trading for all. This proposal builds upon GMX’s successful Ethereum-led multichain strategy, which has enabled expansion across leading EVM chains through abstracted deployments leveraging Arbitrum’s infrastructure.

MegaETH represents an enhancement to this established strategy, not a departure from it. With its revolutionary 10ms block generation, streamlined low-latency infrastructure, and sequencer-level integration of Chainlink Datastreams, MegaETH provides GMX an opportunity to iterate and test protocol improvements in a live environment without introducing risks to the core protocol.

Key Integration Highlights:

Ultra-Low Latency Trading: Near-instantaneous trade execution approaching centralized exchange performance while maintaining full decentralization.

Advanced Oracle Integration: Sequencer-level Chainlink Datastreams building on GMX’s three-year collaboration for unparalleled oracle performance.

Risk-Free Innovation Platform: Isolated environment to validate protocol improvements and accelerate development cycles before broader ecosystem implementation.

Reasons for Integration

Technological Innovation Leadership

GMX has consistently deployed on chains bringing meaningful technical innovation:

  • Arbitrum: Pioneered optimistic rollups with sub-second execution through its sequencer-based architecture and interactive fraud proofs, the first environment that allowed a product like GMX to exist, and every subsequent update including V2 leveraged the ever-improving chain design

  • Avalanche: Revolutionized consensus achieving sub-second probabilistic finality through repeated random sampling rather than traditional leader-based approaches, enabling true finality (not just confirmation) in under one second. This, along with their institutional focus, created an exposure to a distinct set of users

  • Botanix: Introduced the first Bitcoin-native Layer 2 with its Spiderchain innovation—a distributed network of dynamically rotating multisig wallets that enables native Bitcoin settlement and EVM compatibility without bridging or wrapping mechanisms. Allowed GMX to evaluate the potential and appetite of the BTCfi space

  • Solana: Presented a unique ecosystem opportunity requiring a complete GMX codebase rebuild to leverage its distinctive parallel execution environment and account model, unlocking access to a vibrant trading community and novel DeFi primitives impossible on EVM chains

  • MegaETH: Represents the next frontier with 10ms block generation and pioneering sequencer-level Oracle integration. MegaETH and ecosystem protocols have demonstrated strong alignment and desire to collaborate, leveraging GMX both as a yield generation platform and trading venue for deeper protocol integration

Live Innovation Environment

MegaETH provides an isolated platform for rapid iteration without affecting existing deployments. This enables real-world validation of ultra-low-latency features and ensures innovations are thoroughly proven before broader ecosystem implementation.

Strategic Partnership & Protocol Integration

MegaETH’s innovative protocol suite offers unique composability opportunities with GMX’s trading and yield infrastructure. The strong collaborative alignment between teams enables deeper integration possibilities, positioning GMX not only as a trading venue but as a foundational liquidity and yield layer for MegaETH’s emerging protocol ecosystem.

Technical Readiness & Infrastructure Expertise

Infrastructure challenges of such a blockchain environment are distinct, but GMX has, over the last year plus, kept growing its technical contributor base to handle such challenges, onboarded top infra partners, and can now start to move into even more granular execution. The work done by the GMX Solana team has also greatly contributed to this understanding of how to handle and interact with such environments.

Market Leadership & Ecosystem Growth

Early deployment solidifies GMX’s position as the most performant perpetual DEX while providing access to MegaETH’s user base. While GMX continues to grow our multi-chain architecture, a deployment on MegaETH works in parallel and will need to be dovetailed over time into this approach.

Technical Feasibility

EVM Compatibility & Infrastructure

MegaETH maintains full EVM compatibility, ensuring seamless smart contract porting. Key infrastructure providers (RPCs, relayers, subgraphs, keepers) have confirmed comprehensive ecosystem support, meaning the technical lift will be minimized.

Advanced Integration Capabilities

Sequencer-level Chainlink Datastreams integration provides unprecedented oracle performance, while MegaETH’s specialized 10ms block infrastructure creates opportunities for potentially specialized GMX implementations optimized for ultra-low latency trading.

Crosschain Integration

GMX’s robust crosschain architecture enables seamless MegaETH integration while maintaining connectivity across the broader ecosystem, operating within the established multichain framework that leverages Arbitrum-based infrastructure.

User Experience & Deployment Architecture

GMX’s current multi-chain presence reflects our commitment to meeting users across diverse blockchain ecosystems, but this expansion has created UX and operational complexity that does require strategic resolution. Four years of aggressive multi-chain growth has accumulated technical and architectural debt that MegaETH deployment acknowledges but doesn’t at this stage directly solve—instead, it can serve as a catalyst for systematic improvement.

Current State

GMX users today encounter varied experiences depending on their entry point:

  • Arbitrum: Native chain integration with GMX Accounts and comprehensive market access
  • Avalanche & Botanix: Independent deployments with dedicated liquidity pools and market structures
  • Base, BNB, Ethereum and more soon: Unified multi-chain experience leveraging Arbitrum’s liquidity infrastructure
  • Solana: Parallel implementation with GMTrade, serving a distinct ecosystem

Each deployment serves specific strategic objectives, expanding into Bitcoin DeFi, targeting institutional-focused environments, or accessing vibrant trading communities. However, this diversity creates fragmentation in a market increasingly dominated by unified perpetual DEX experiences on single, high-performance chains.

Strategic Approach

MegaETH will launch as an isolated deployment, allowing rapid iteration on ultra-low latency capabilities without disrupting existing operations or forcing premature architectural decisions. This approach buys time to address GMX’s UX fragmentation properly, treating MegaETH as an experimental environment where protocol innovations (single GLV liquidity, optimized trading flows, advanced oracle integration) can be validated in real-world conditions before informing broader architectural evolution across all deployments.

Contributors are simultaneously advancing longer-term thinking on how to abstract away complexity and consolidate user experience while preserving the strategic advantages of each chain relationship if aligned. There are multiple possible approaches and we need to engage in transparent dialogue with ecosystems we support about mutual commitments, success metrics, and how we ensure that GMX and chains succeed together and provide users the best experiences. Their support may help dictate which approaches we unlock to best achieve this goal.

Implementation Plan

Given the deployment architecture context above, MegaETH implementation follows a phased approach that balances immediate ecosystem participation with long-term strategic flexibility.

Phase 1: Approval & Ecosystem Coordination

  • Seek DAO approval and coordinate with MegaETH foundation and ecosystem projects

  • Establish participation in ecosystem programs and finalize partnership frameworks

  • Follow the same fee structure framework as established in the Botanix proposal for standalone deployments

  • Deploy initial infrastructure and complete integration testing

  • Coordinate with GMX bridge infrastructure development for fee collection and distribution mechanisms

Phase 2: Launch & Performance Validation

  • Phased mainnet deployment with comprehensive low-latency testing

  • Real-world validation of ultra-low latency capabilities and sequencer-level oracle integration

  • Monitor user adoption patterns and gather performance data on 10ms block execution

Phase 3: Innovation Testing & Architectural Learning

  • Iterative development and testing of protocol enhancements in isolated environment

  • Validation of potential improvements (single GLV liquidity, optimized trading flows, advanced oracle patterns)

  • Documentation of learnings and implementation patterns for potential broader ecosystem application

Phase 4: Strategic Integration Assessment

  • Evaluation of successful innovations for potential implementation across GMX V2 deployments

  • Assessment of MegaETH’s role within evolving multi-chain architecture strategy

  • Coordination with parallel thinking on a unified abstraction layer to determine optimal approach

Call to Action

The GMX community is invited to provide feedback on this proposal to deploy GMX V2 on MegaETH establishing new performance standards for on-chain perpetual trading while maintaining a commitment to permissionless, transparent markets and providing a risk-free environment for protocol innovation

Next Steps

Community Discussion: Engage on the forum to discuss technical details, performance implications, and specialized implementation opportunities.

DAO Approval: If supported, empower contributors to aggressively move into with MegaETH ecosystem, participate in programs, and establish collaboration frameworks benefiting the DAO.

Your participation shapes GMX’s continued leadership in perpetual trading innovation and expansion into next-generation blockchain infrastructure.

5 Likes
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Reserved for future Labs posts

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For this proposal, would vote to deploy on MEGAETH given its popularity.

2 Likes
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My hope is that it would give arbitrum chain a run for its money.

Competition works.

3 Likes
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I think Arbitrum has been pretty fond of GMX especially from OffChain Labs contributors… But i think the support from them has not been strong compared to other networks as of late, do hope for stronger support to GMX given the amount of Gas the dapp drives on arb monthly.

Seen them promoting other Perps etc but rarely GMX nowadays, DRIP event would be nice, but given market sentiments not sure if it would help, and them losing mindshare to Base is concerning too.

3 Likes
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L2 chains are in a difficult spot, at the moment. It feels like Base and Arbitrum have captured the available territory there, and all other L2s are on the gentle road to irrelevance. Also the ones that had significant, temporary traction.

The data seems to back this up: L2BEAT - The state of the layer two ecosystem

Against that backdrop, I expect it won’t be easy for MegaETH to establish itself. But if there is one chain that I find very interesting from a tech point of view, and the potential synergies that tech can offer GMX, it’s MegaETH. So I’m in favour overall.

3 Likes
7

interesting.

Especially interesting if they can provide any form of incentives for traders to use GMX..

Is there any chances to make such activation programs with them ?

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Those discussions are very much underway, I understand.

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At last we have solid proposal from (i suppose) core contributors themselves. MegaETH choise looks logical because it is most hyped upcoming chain atm and first comer advantage can be key reason for our success. My concerns and questions:

  • How quickly we can move with this and will it be production ready on public mainnet day 0?

  • Do we have enough development resources for it and will this negatively affect our other urgent tasks or roadmap?

  • If initial deployment will be completely separate from current multichain concept would it be possible to add MegaETH to multichain workflow later as yet another settlement chain?

  • And most important question- do we have solid marketing and initiatives plan in place to make sure this deployment will be successful and game changer for GMX protocol?

Because it very sad to witness current situations then after full year of multichain development efforts and it’s release, because of lack of marketing or initiatives, we barely see any positive impact to userbase or uptick in protocol stats. To be honest, the number of platform users is currently dropping like a stone and nothing is being done about it. So it is good display that just new deployments or new functionality isn’t enough to withstand current competitive environment.

2 Likes
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All relevant questions indeed.

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Do I understand correctly that MegaETH is an EVM machine so it would not impact dev work much more than any other EVM chain?

I’m in favor of deploying on MegaETH and indeed hope it can compete with Hyperliquid for volume. If the work would be similar to adding any other EVM chain through multichain implementation I guess this one should be no brainer.

1 Like
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Yes, it’s a very fast EVM blockchain implementation.

But it would be a native deployment, not just a Multichain integration deployment. Liquidity pools would be on MegaETH itself.

An interesting follow-up question in that regard, is how activitity could be optimally bootstrapped on MegaETH in terms of go-to market and incentives.

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Why opt for dedicated liquidity and not the shared like with the other implementations?

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The potential unlock from their propsoed 10ms block generation and the sequencer level integration of Chainlink datastreams, creates a potential execution environment that we would not be able to unlock using our multi-chain infastructure.

For users on ethereum mainnet, base and BNB, once their accounts are funded provide them an experience comparable or in most cases better.

This provides the opportunity to show how much further we can push the GMX infa and performance once further optimized.

3 Likes
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I have been receiving feedbacks and questions too, on potential airdrops for users.

And if gmx receive incentives, airdrops, which would be nice for treasury OR additional benefits to users.

stay tuned. We will update when megaeth rolls out their plans. :slight_smile:

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GMX is aligning to be active on the chain during the bootstrap window for chain activity, Megaeth is taking a stagewise process in ramping up chain activity.

It will take resources to deploy on a new chain, but the experience from earlier this year in deployijng on Botanix, has ensured we have a clear roadmap for enabling a quick deployment including dependancies with key infra partners.

The code for a chain to be a settlement network exists in the common codebase deployed to all chains where GMX V2 is natively deployed, and could be turned on. As identified in the proposal, there are multiple paths for how the disperate experiences on various native deployments are handled and abstracted so there is no commitment today that this would be used on any given chain.

We have been in regular contact with the megaeth team on their own roll-out and how we can position ourselves within their ecosystem. If an effective bootstrap is achieved GMX can be the go to destination for trading in largest mcap assets on megaeth, providing our established execution, reliability and brand to users there. Being successful requires active engagement across the ecosystem, and we are commtted to such an effort and making preliminary inroads.

2 Likes