I was wondering if it was a reasonable idea to put GMX into the GLP pool.
What are the Pros, what are the Cons?
GMX has a fairly high trade volume on Uni and my thought process was to profit from those high trade volumes by generating fees through the GLP pool.
We could either add GMX into the pool or exchange it with one of the less used tokens (Uni and USDT are underutilized most of the time).
Any feedback is welcome and i would also appreciate any explanation if and why it would not be a good idea!
Given the structure of GLP in some ways you can look at risk in a manner similar to defi lending pools. You want to avoid having assets which do to their relatively thinner liquidity could be used as an attack vector on the pool.
There was recently an attempt using CRV against AAVE, and that was a relatively more limited attempt which only sought to manipulate price using scarcity and not further attempt to manipulate oracle prices as happened with the attack on Mango Markets last month.
The proposed new synths contracts though will help to create isolated markets for trading, which could potentially be a better option when looking at tokens like GMX, it will be for liquidity providers to get comfortable about the exposure and returns that such markets provide.
i don’t think this is a wise idea. It would be better to keep GMX on isolated pool paired with some volatile assets maybe. It’s not so liquid and might open protocol to some attack vectors eg: AAVE.
Actually it might be a gud idea to create another pool with more volatil assets and take more fees from those trades. GMX might have a place in there but not on GLP pool, imo.
