GMX V2 - go to market

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The beta roll-out of GMX V2 continues to progress with key completed milestones:

  1. GMX V2 Fee Split, Interface & Market Parameters, and V2 Genesis Parameters implemented by governance have established the protocol developed for the DAO and the parameters for Launch
  2. the approval of Chainlink Low Latency Oracles to support V2 and the eventual integration of Chainlink Data Streams on Arbitrum
  3. and the recent approval by the Arbitrum DAO of a grant proposal to support the adoption of GMX V2 as part of Short Term Incentive Program

GO TO MARKET

The items below are not a commitment from Contributors, but a reflection of ideas received from community members, protocol users and liquidity providers on how to support the growth of V2, in direct messages, meetings and this governance forum.

The 12 million ARB incentive campaign provides a natural opportunity to accelerate the DAO’s other efforts toward the adoption of V2.

GLP to GM

  • Evaluate the integration and whitelisting of a contract that supports the redemption of GLP directly into GM liquidity tokens.
  • This contract could reduce friction for existing liquidity providers to support V2 markets with reduced or zero redeem fees when exiting GLP
  • Easy setup to convert from GLP to multiple GM liquidity tokens
  • Given initial markets of V2 utilize native USDC, incorporate other swap venues to swap USDC.e for USDC, making the process more efficient for liquidity providers and removing manual steps.

New Markets / New Tokens

  • Initiative the process of evaluating and establishing new GM markets
  • This process will be accompanied by a technical review for risk, and market size
  • 1-2 new token listing monthly starting with pre-approved assets from risk managers, the community votes monthly to add a token. New assets can be evaluated based on community feedback and this risk review, then added to the voting pool.
  • Support for alternative collaterals (different stables, LSTs) if supported by DAO-to-DAO understandings

esGMX

  • Evaluate enabling vesting of esGMX previously earned while providing GLP liquidity against select GM tokens determined by the DAO. Such vesting could also allow the same vesting schedules when vesting against GM tokens.
  • Evaluate the creation of an esGMX loyalty program for GMX stakers, for actions such as trading, providing liquidity, and/or driving referral volume on V2.

Supply caps

  • Supply caps are utilized as a security mechanism for GLP and V2 and evaluated by the Risk committee when established under governance vote (Interface & Market Parameters)
  • In addition to security inputs, evaluate regular input from governance on supply caps for specific markets, including GLP, to target optimal capital allocation on the platform. For example, higher mint / redeem fees when pools grow beyond certain thresholds.

GMX V2 - STIP Incentives

  • Feedback on the formation of the STIP incentives, the provision of which has some degree of flexibility on how on-chain activity is incentivized on Arbitrum, between liquidity, trading activity, and integrations.
  • Some community recommendations and ideas include:
    • Incentives for long-term provision of liquidity. Ex.
      • Hold your GM liquidity from X date to the end of the program and you will receive a % of the extra Arb Token. E.g, if a user deposits $1000 in the ETH/USDC pool and holds for the entire program length, they earn an additional 15% arb bonus, any withdrawals over the timeframe would make you ineligible
    • Incentives for higher-volume traders

-Tiered Rebates for weekly volumes

  • Incentives for trading competitions

        -Highest % PnL Weekly with $500 min collateral

    -Lowest % PnL Weekly with $500 min collateral

    -Large trading competition prizes weekly (50 arb or greater) after LP incentives open up V2 liquidity so as to not bottom-neck the competition.

The above ideas from this forum discussion, after confirmation of preliminary feasibility for technical implementation, will be voted on for development attention and possible integration within the GMX V2 code base. Proposals may be individual or bundled together for voting based on community feedback on the GMX forums. The language above reflects individual community ideas and have not been specifically vetted for ability to be implemented.

Disclaimer:

The content presented is for informational purposes only and does not constitute legal, financial, or investment advice, nor represent a binding legal agreement.

While discussions and voting may transpire on GMX DAO’s official social media channels, it’s crucial to understand that contributors act independently. Any discussions or proposals should not be construed as a commitment or obligation by any individual contributor.

No warranties or representations are made regarding the accuracy, completeness, or suitability of the information presented, and no liability will be accepted for any losses, damages, or adverse consequences that may arise in relation to this discussion or proposal.

It is strongly advised to undertake your own due diligence and seek advice from relevant professionals before decisions are made based on the content of this proposal or related discussions.

10 Likes
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Regarding the incentive mechanism for GM to obtain esGMX and ARB, I have the following opinions. Since GM is AutoCompounded, it is reasonable for people to sell a small amount of GM daily to realize returns. Taking 10% APR as an example, selling 0.02739% of GM daily is entirely reasonable and should be acceptable. Therefore, it is very extreme to cancel the eligibility to obtain ARB for any selling behavior.

We can consider a mechanism similar to staking GMX to obtain Multiplier Points, where holding GM can earn you something like MP-GM. The distribution of ARB incentives can be determined based on the proportion of MP-GM held. For instance, if you hold 100GM, you can earn 100MP-GM evenly over a year. However, if you sell 5% of your GM, then 5% of your earned MP-GM will be destroyed. Like GMX, you can exit from GM anytime, but there is a cost to your exit. ARB serves as an incentive for those who hold GM long-term, and it is distributed in a mild and rational manner.

One of the excellent points about GMX is that it uses a good incentive mechanism to encourage users to hold for the long term, rather than by forcibly locking up their assets. I personally greatly appreciate this approach and hope it continues.

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What about programs or mechanisms for applications built on GMX? Should we encourage the development of our ecosystem?

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excited for the new assets schedule, think its changes the dynamic and engages both sides of the community more (traders and GMX holders) in the product

GLP to GM, STIP and other are all great too

GMX is going to market! Great work

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This is indeed a small part of the Short Term Incentive Program as well; integrations built on GMX will be encouraged in some form.

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I think monthly community voting on new GM asset listings is a good approach; looking forward to those engaging discussions.

Different stablecoin collaterals and the potential of LSTs as collateral is definitely worth exploring…!

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As a representative of GMD Protocol, we believe this idea is beneficial. Of course, this might make it a little trickier for Devs from protocols building on top of GM Tokens and the STIP distributing contracts as well, but it should be worthwhile since this will thoroughly increase the “stickiness” of the liquidity. Such sticky liquidity will enable GMX to be significantly better in the long run

2 Likes