GMXSOL: Provide GT rewards to LPs

Background

Since the base APY for LPs is currently low, it’s difficult to achieve meaningful TVL growth. To increase LP earnings and encourage long-term liquidity provision, we plan to introduce a tiered GM/GLV reward mechanism—similar to esGMX—by distributing GT to LPs as an incentive.

Mechanism

  • LPs can withdraw freely without any lock-up.
  • LPs can claim GT at any time; GT will be minted upon claiming.
  • The longer the LPs provide liquidity, the more GT rewards they can earn. The tiered APY rewards are as follows (set as parameters and adjustable):
  1. 1 to 4 weeks → 5%
  2. 5 to 12 weeks → 10%
  3. 13 to 24 weeks → 15%
  4. 25 to 48 weeks → 20%
  5. ≥ 48 weeks → 30%

Note: LPs will not receive any GT rewards during the first week. From week 2 to week 4, they will earn GT at a 5% APY. From week 5 to week 12, the APY increases to 10%, and so on, until the LP withdraws their liquidity.

4 Likes

It’s definitely wise to use a tiered mechanism that incentivises long-term LP’ing, I think.

I think that the APY should be higher while the TVL is below 20-50 million. For example, 40-50% in the maximum version and in the first 4 weeks about 10%. Also, it is worth adding a boost depending on the amount of holding GT (VIP level) of the user

1 Like

I agree with stimulation based on TVL. At the moment, it’s necessary to raise the plan to 40-50%. It’s also important to consider VIP status, as the more and longer a user holds GT, the fairer it is to provide a higher % APR. Will the timer reset if the LP is only partially withdrawn or if the position is increased? And how will this recalculation occur?

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Will there be rewards for referrers if the referral provides liquidity in LP?