Listing Proposals I - Nov 2021

Proposals
1

To allow for more swaps and leverage trading, we propose to expand the list of tokens in GLP.

Proposed stablecoins:

  • DAI
  • FRAX
  • MIM

Listing these would diversify the stablecoin holdings of GLP and allow users to use these tokens as collateral for leverage positions.

The current stablecoins available in GLP are USDC and USDT, the combined stablecoin weight is currently 20%, 15% USDC and 5% USDT. The combined weight is less than 50% due to the high utilization of ETH and BTC and lower utilization of USDC and USDT. This weightage may change in the future, but that would be a separate topic.

If DAI, FRAX and MIM are added, a possible updated weightage would be:

  • 10% USDC
  • 3% USDT
  • 3% DAI
  • 3% FRAX
  • 3% MIM

That would be a combined weight of 22%.

Frax Protocol (FRAX) and Abracadabra.Money (MIM) are open to co-marketing with us for the listing, so this listing would be helpful in increasing the visibility of GMX as well.

It would also make GMX unique as one of the few places where FRAX and MIM can be used as collateral for leverage trading.

For non-stablecoins that we can list, it would be:

  • AAVE
  • SUSHI
  • YFI

This is based on the tokens with price feeds on Chainlink: Arbitrum Feeds | Chainlink Documentation

The current UNI pool is somewhat utilized, 20% currently, we could list these tokens with smaller weights and sharing some of the weight from UNI.

Possible updated weights:

  • 40% ETH
  • 25% BTC
  • 5% LINK
  • 2% UNI
  • 2% AAVE
  • 2% SUSHI
  • 2% YFI

This would be a combined weight of 78%.

The listing proposal can be combined in one single snapshot vote where users can vote for more than one option.

There would be two options for each token, e.g. Yes for AAVE, No for AAVE.

The token will be listed if gets more Yes votes than No votes.

3 Likes
2

I have follow MIM & FRAX & I think there is a network effect happening with both MIM & FRAX with MIM having a superb growth spurt. The trails of MIM (Abracadabra money) is phenomenal.

A new class of users are holding and using MIM & FRAX & can easily find their way to GMX.

When we look at the regulatory risk exposure of USDC, having stablecoins being diversified to me is a good way to look at things,

Why not list CRV instead of AAVE. While AAVE is also a good project, but CRV is in massive growth phase and are innovating as well speak.

1 Like
3

Regarding stables
MIM has grown astronomically since launch and the following on social for that community is insane. Having them partner with us would be incredible. Their founder is a grinder and we need more of those in the space. MIM’s trading volume is minimum 2x that of FRAX. DAI is around 1B…you can check to spreadsheet. It looks like CG kinda underreports the numbers…possible they just don’t link to as many sources.
I’m not super aware of FRAX so I don’t have a great feel for them so I won’t comment.
DAI feels like a boomer stable. Not saying it isn’t good, it’s just not the meme of the day.

All in all, you can’t argue with these volumes and I think adding them to be used as collateral would be helpful. If these can be used for swaps as well (I think adding to the GLP makes this automatic but I’m forgetting) then our work with integrators is going to be pretty fire.
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Regarding non-stables
If we look at the volumes on PERP and Dydx, AAVE and YFI don’t hit the top 10 in volume. So while it’d be nice to add those…I’m not sure how many traders will utilize those pairs. I’m not certain what underutilization would do for GLP but something to note. Sushi is the only thing in the top 10 for either…and could bring in more volume and could actually be somewhat utilized.

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4 Likes
4

With regards to listing MIM and FRAX as stables: these are good assets with lowered risk to centralised stablecoins. I am in favor. It would also attract a lot of liquidity, as these are assets looking for more use cases.

With regards to non-stables:

  1. YFI: Yearn does not even have a presence on Arbitrum: it should not even be considered in this proposal. I am very confused why it is even in there.
  2. AAVE: Same as above.
  3. SUSHI: This is an excellent choice, and we should add it to the GLP. Sushi also actually has a presence in Arbitrum.

I miss SPELL in this proposal: SPELL is a very real, legitimate asset with very good tokenomics and very good demand in the market. On Arbitrum One, SPELL is constantly trading either on a discount or in premium with respect to its market price. It is also an asset that is quite volatile: meaning swap revenue from arbitrageurs will be aplenty.

It has decent volume, and will add lots of revenue to the platform as a whole. It also has an Arbitrum chainlink feed. SPELL also has Arbitrum presence, meaning that real liquidity will actually come to GMX from SPELL holders looking for yield from SPELL liquidity mining emissions on Arbitrum (and holders who don’t want to go to Ethereum because of prohibitive fees on layer-1). Why is this not even considered?

What I have been fearing is that GMX holders are treating the GLP as an index fund: it is not. It is a pool of liquidity that traders trade against. Its sole purpose should ALWAYS be to generate more revenue for GMX, and NOT for people to incooom off of vested GMX emissions and trading fees.

Bottom line:

  1. Great choices on FRAX and MIM.
  2. I think AAVE and YFI should not be considered at all in no given circumstance, and SPELL should be seriously considered.

Edit: just read about AAVE v3. I am reconsidering my stance on Aave.

3 Likes
5

I‘m in favor of all stables, however I would prefer smaller target allocations to the newcomers. In other words - try to maintain safer target levels of USDC and USDT Dai. This will likely reduce concerns from potential GLP Investors with more conservative views.

Additional non-stable tokens for GLP fund should be subject to certain limitations such as:

  1. have existed for at least one year and volatility is below a certain threshold.
  2. have a History of outperforming Eth on a macroscale.
  3. have fundamentals, active development and more than just a strong community.

Im ok with sushi - other than that - there is no need to rush to add shitcoins which would be detrimental to GLP size.

2 Likes
6

I’m a fan for reducing the weighted average of a single stable so expanding this pool with more options reduces the risk in case there is a catastrophic event imo (ie. Tether goes under).

I also think it’s smart to continue to bring on more solid Defi Projects in the pool versus other types of protocols. This helps support the entire market and keeps GMX on brand verus bringing on random and non-related projects such as Doge or Shib as some have requested.

This proposal has my full support.

7

As Tether is so under-utilised (8% currently) why don’t we get rid of it all together and have some combination of DAI, FRAX and MIM, say 4,3,3?

1 Like
9

I am quite scared about FRAX & MIM because not familiar with them too much.
But as marketing thing to gather attention from their community looks clever idea.
If we start with little weighting on these very new assets - I am rather ok with that proposal.
But would be nice to have more participants to this discussion and to hear their thoughts about MIM and FRAX… especially those, who did DYOR on these projects.

10

I think adding the 4 Chainlink token (2 now, 2 later perhaps is optimal for 2% stake in GLP for the following reasons :

  • More options for whales to feed GLP
  • Aggregator Volume will eventually come for those coins, just need some exposure to them
  • Can always chop out later
  • Each of of those communities have maxis that could join GMX
  • GLP is a swap pool, not a bonding pool
  • Low utilisation rate for futures trading which is the bigger part of the cake right now

tldr : A/B test them all

11

Thank you for the thoughts on it, CRV doesn’t have a Chainlink price feed on Arbitrum yet Arbitrum Feeds | Chainlink Documentation

12

Good points raised, I’m personally more for listing the stablecoins and AAVE, SUSHI, SPELL.

We can have all these options listed for the voting, tokens with lower utilisation can have their weights decreased later on.

2 Likes
13

I’m personally more for listing the stablecoins and AAVE, SUSHI, SPELL.

can we get them added to the voting, in this case include. SPELL ?

14

+1 to this - I’d love if we can add in DAI, MIM and FRAX as the stables, and AAVE, SUSHI and SPELL (rather than YFI).

Is it possible to list DPX for a non-stablecoin? The token’s red-hot atm, and they provide a decentralized options protocol. I imagine co-marketing with them would be amazing for GMX.

15

ah nvm, theres no chainlink feed for DPX yet.

16

Yes will add SPELL to the voting list

17

Considering the development of ust on avalanche maybe it should be considered. Being the largest decentralised algorithmic stable coin it should be considered. Will also bring the Terra community eyes to gmx.

1 Like
18

That makes sense, thank you for the suggestion! The volume looks alright on Pangolin, I think it is worth a vote, we have been contacted by a few other stablecoin projects as well, will collect them together to be voted on.

2 Likes