New Asset Listing: APE

Risk
1

New Asset Listing: APE
New Asset Listing: APE1920×960 25.5 KB

Summary

Below, we provide initial recommendations for launch parameters for APE on GMX V2, following our new asset listing framework New Assets Listing Framework.

Based on the market cap and trading volume of these assets, we recommend setting parameters similar to those of mid-cap assets, with adjustments to account for the specific risks associated with the low liquidity and high volatility it has.

We suggest different Reserve Factors and Open Interest Reserve Factors for backed and synthetic markets and more conservative swap parameters for backed markets.

Analysis

Asset Asset Class Market Cap Volume Slippage [bps] Liquidity Depth [$]
APE mid cap $871,007,541 $80,834,413 21 0.8M
  • Market Cap - average 180 days market cap
  • Volume - average 180 days volume
  • Slippage - The 99th percentile of slippage on Binance XXXX-USDT perp at 100K
  • Liquidity Depth - the 10th percentile of order book depth at 1% from the middle price on leading CEX over the last two months

Below, we present the daily price change for each of the assets, alongside statistics derived from it:

Daily Price Change (%)
Daily Price Change (%)2048×1288 137 KB

As observed, this asset is highly volatile. Therefore, we recommend a maximum leverage of 100x, a minimum collateral factor of 0.01, and suitable minCollateralFactorOILong and minCollateralFactorOIShort values.

We suggest setting initial open interest (OI) caps at $1 million on each side. As the market grows, we can potentially increase the OI caps while continuing to consider the low liquidity.

Recommendations

Parameter Backed Synthetic
Position Impact Exponent 2.2 2.2
Position Impact Positive Factor 2.50E-10 2.50E-10
Position Impact Negative Factor 5.00E-10 5.00E-10
Position Impact Max Positive Factor 0.005 0.005
Position Impact Max Negative Factor 0.005 0.005
Position Impact Max Factor for Liquidations 0 0
Swap Impact Exponent 2 2
Swap Impact Positive Factor 1.5e-8 2.5e-9
Swap Impact Negative Factor 3e-8 5e-9
Swap Fee Factor (Positive Price Impact) 0.0005 0.0005
Swap Fee Factor (Negative Price Impact) 0.0007 0.0007
Position Fee Factor (Positive Price Impact) 0.0005 0.0005
Position Fee Factor (Negative Price Impact) 0.0007 0.0007
Borrowing Factor Long 1.6e-8 1.6e-8
Borrowing Factor Short 1.6e-8 1.6e-8
Borrowing Exponent Long 1 1
Borrowing Exponent Short 1 1
Funding Increase Factor 1.16E-12 1.16E-12
Funding decrease Factor 0 0
Max funding Factor 1.50E-08 1.50E-08
Min funding factor 3e-10 3e-10
Threshold for stable funding 0.05 0.05
Threshold for decrease funding 0 0
Min Collateral 1 1
Min Position size 1 1
Min Collateral Factor 0.01 0.01
Min Collateral Factor OI Long 2.5e-9 2.5e-9
Min Collateral Factor OI Short 2.5e-9 2.5e-9
Max Leverage 100 100
Max Open Interest Long 1,000,000 1,000,000
Max Open Interest Short 1,000,000 1,000,000
Reserve Factor Long 0.95 0.8
Reserve Factor Short 0.95 0.8
Open Interest Reserve Factor Long 0.9 0.75
Open Interest Reserve Factor Short 0.9 0.75
Max PnL Factor Long 0.8 0.5
Max PnL Factor Short 0.8 0.5
2

Look forward to getting this in snapshot and listed.

3

I support GMX adding the APE asset. It might enhance collaboration with the leading NFT community.

4

With Apechain deployment imminent, as well as a reasonably strong daily trading volume currently, i see good reasons to list APE for trading on GMX v2 and the potential partnerships which could emerge from such a listing.

1 Like
5

Support for this proposal: The listing of APE will benefit GMX by attracting new potential users from NFT communities, given that the $APE coin has significant volume on major CEXs. We look forward to the potential collaboration between Bored Ape Yacht Club and GMX beyond the listing of APE.

6

We are happy to see more assets listed on GMX. However, we must note that currently, the newly listed altcoins do not bring a lot of liquidity, trading volume, or fees to the protocol. Since many people in the community think it is necessary to list more assets, we don’t think it is a bad idea. If, in the future, people find that more assets do not lead to more fees or TVL, it will not be a bad outcome.

This proposal will help resolve the disagreements. We will vote for it.

7

Bringing the NFT community to GMX is always beneficial, it might not bring the best volumes/fees numbers but definitely worth bringing APE to Arbitrum.

8

As far as the risk parameters are concerned (and we believe Chaos Labs has done a good job historically), D2 Finance supports the new token listing and will be happy to add it to our strategies if it fits the strategy mandate.

9

With potential catalysts like Apechain on the horizon, listing APE on GMX represents a strategic opportunity to attract new users, more so from the NFT community.

+1 vote from us.

1 Like
10

My hope would be that as new assets are added and GLV comes to fruition it allows narratives to create the respective fees.

11

so when to list ape?

12

Coming right up, I hear