Date: 21 August 2024
Summary
In August 2024, KnightSafe received a total of 75,000 ARB grant from GMX to drive further growth in GMX V2 in terms of both trading volume and to recover part of its audit costs for enhancing the security level of the KnightSafe protocol. The goal was to boost the trading volume by $50m and increase the inflow of capital into GM pools by $3m. Surpassing our original targets, KnightSafe users contributed $184 million+ in trading volume and $32 million+ in capital inflow.
Objective 1: Completion of Smart Contract Audit by Renowned Auditor to Strengthen User Confidence
In late June, KnightSafe engaged SlowMist, a reputable smart contract auditor, to review our systems. The audit, completed in July, yielded highly satisfactory results, significantly boosting user confidence in KnightSafe’s ability to securely manage their assets within the GMX ecosystem.
Objective 2: Boosting additional inflow of capital into GM pools
Capital inflows have surpassed $32 million, exceeding the initial target of $3 million by over 1,000%. This influx not only generated additional fees for the GMX ecosystem but also enhanced liquidity, creating a more robust trading environment. This increased liquidity is particularly crucial during periods of high volatility, such as the recent 20% price correction in ETH that occurred within hours.
Objective 3: Boosting additional trading volumes in GMX v2
Cumulative trading volumes have reached $184 million since June, far exceeding the $50 million target. This demonstrates our effectiveness in channelling trading activities into the GMX Perp DEX ecosystem, thereby enriching both the GMX and Arbitrum ecosystems.
KPIs and Results
| KPI | Milestones | Target | Final Results |
|---|---|---|---|
| Smart Contract Audit | Completion and Satisfactory Audit Result from Renowned Auditor | Completion | Satisfying Result Completed |
| TVL in GM | Accumulated additional inflow of capital into GM pools exceeds $3 million | $3 million + | $32 million + |
| Total Trading Volumes | Accumulated additional trading volumes of exceeds $50 million | $50 million + | $184 million + |
Reflections
The grant led to a significant increase in trader activities within the GMX ecosystem via KnightSafe, highlighting its effectiveness in channeling liquidity into GMX V2 and supporting the vibrant activities within the Arbitrum ecosystem. Despite some dilution of APR due to the expansion of the GM pool relative to trading activities, we continue to observe healthy capital inflows into the GM pool from KnightSafe users, particularly following the boost in user confidence after the completion of the smart contract audit.
We attribute the success of the grant initiative to a combination of factors: the grant incentives, the liquidity incentives, the trading incentives, and the continued success of GMX as one of the most prominent perpetual DEXs in the Arbitrum ecosystem. This initiative not only underscored KnightSafe’s capability to secure user assets but also highlighted the strong interest and trust within the community towards our innovative DeFi asset management platform.
Metrics
The trading volumes and capital inflows to GM mint volume have grown steadily, reflecting strong interest and demonstrating the grant’s effectiveness in boosting KnightSafe users’ activities, thereby benefiting the GMX V2 ecosystem. We anticipate that this momentum will be sustained throughout the claiming period, which is expected to conclude in approximately 2 weeks.
https://dune.com/knightsafe/knight-safe-x-gmx-v2
