Summary
Chaos Labs has implemented a structured framework of guidelines and asset categorisation to enhance the efficiency and effectiveness of the asset listing procedure on GMX. Our approach involves establishing specific preconditions for assets. When these criteria are fulfilled, the asset automatically becomes eligible for a preliminary review by Chaos Labs. This review provides initial recommendations for listing parameters.
Assets not fulfilling these predefined conditions will be subject to a governance vote to gauge the community’s preference regarding their listing. This approach aims to ensure that Chaos Labs, as the protocol’s risk manager, dedicates its resources to analyzing only the most viable assets, thereby streamlining the listing process and aligning it with the community’s interests.
Conditions Qualifying for Automatic Review:
- CEX Listing - the asset is listed as perp on major CEX (Binance, Kraken, OKX, Bitmex, etc.)
- Market cap - the average market cap over the past six months is at least $1B.
- Volume - the average daily volume over the past six months is at least $100M.
- Liquidity (CeFi) - the 99th percentile slippage over 3 months for a 100k trade on both sides less than 50bps
- Oracle - live Chainlink oracle (or any other DAO-approved oracle)
Asset Classes
To facilitate clear communication, we have categorized the assets into four specific groups:
- Large Cap Backed
- Mid Cap Backed
- Large Cap Synthetic
- Mid Cap Synthetic
Definitions for these categories are as follows:
- Large Cap: Refers to assets with a market capitalization exceeding $15 billion.
- Mid Cap: Refers to assets with a market capitalization that falls between $1 billion and $15 billion and has successfully met the listing criteria.
Asset Classes Parameters Example
Below, we outline baseline recommendations for the various asset classes. It’s important to emphasize that these are illustrative examples and serve solely for demonstration purposes. Actual new asset listings will undergo a tailored review process. In this process, we will provide bespoke risk parameter recommendations that accurately reflect the current market conditions, ensuring a nuanced and precise approach for each asset under consideration.
Backed Large Cap (i.e. UNI)
| Parameter | Value |
|---|---|
| Position Impact Exponent | 2 |
| Position Impact Positive Factor | 2.10E-08 |
| Position Impact Negative Factor | 4.20E-08 |
| Position Impact Max Positive Factor | 0.005 |
| Position Impact Max Negative Factor | 0.005 |
| Position Impact Max Factor for Liquidations | 0.005 |
| Swap Impact Exponent | 2 |
| Swap Impact Positive Factor | 1.50E-08 |
| Swap Impact Negative Factor | 3.00-08 |
| Swap Fee Factor (Positive Price Impact) | 0.0005 |
| Swap Fee Factor (Negative Price Impact) | 0.0007 |
| Position Fee Factor (Positive Price Impact) | 0.0005 |
| Position Fee Factor (Negative Price Impact) | 0.0007 |
| Borrowing Factor Long | 9.40E-09 |
| Borrowing Factor Short | 9.40E-09 |
| Borrowing Exponent Long | 1 |
| Borrowing Exponent Short | 1 |
| Funding Factor | 2.00E-08 |
| Funding Exponent | 1 |
| Min Collateral | 1 |
| Min Position Size | 1 |
| Min Collateral Factor | 0.01 |
| Min Collateral Factor Ol Long | 4.00E-08 |
| Min Collateral Factor Ol Short | 4.00E-08 |
| Max Leverage | 100 |
| Max Open Interest Long | 1,000,000 |
| Max Open Interest Short | 1,000,000 |
| Reserve Factor Long | 0.95 |
| Reserve Factor Short | 0.95 |
| Open Interest Reserve Factor Long | 0.9 |
| Open Interest Reserve Factor Short | 0.9 |
| Max PnL Factor Long | 0.8 |
| Max PnL Factor Short | 0.8 |
Backed Mid Cap (i.e. ARB)
| Parameter | Value |
|---|---|
| Position Impact Exponent | 2.2 |
| Position Impact Positive Factor | 2.50E-10 |
| Position Impact Negative Factor | 5.00E-10 |
| Position Impact Max Positive Factor | 0.005 |
| Position Impact Max Negative Factor | 0.005 |
| Position Impact Max Factor for Liquidations | 0.005 |
| Swap Impact Exponent | 2 |
| Swap Impact Positive Factor | 4.00E-09 |
| Swap Impact Negative Factor | 8.00E-09 |
| Swap Fee Factor (Positive Price Impact) | 0.0005 |
| Swap Fee Factor (Negative Price Impact) | 0.0007 |
| Position Fee Factor (Positive Price Impact) | 0.0005 |
| Position Fee Factor (Negative Price Impact) | 0.0007 |
| Borrowing Factor Long | 5.10E-12 |
| Borrowing Factor Short | 5.10E-12 |
| Borrowing Exponent Long | 1.5 |
| Borrowing Exponent Short | 1.5 |
| Funding Factor | 2.00E-08 |
| Funding Exponent | 1 |
| Min Collateral | 1 |
| Min Position Size | 1 |
| Min Collateral Factor | 0.01 |
| Min Collateral Factor Ol Long | 1.00E-08 |
| Min Collateral Factor Ol Short | 1.00E-08 |
| Max Leverage | 100 |
| Max Open Interest Long | 5,500,000 |
| Max Open Interest Short | 5,500,000 |
| Reserve Factor Long | 0.95 |
| Reserve Factor Short | 0.95 |
| Open Interest Reserve Factor Long | 0.9 |
| Open Interest Reserve Factor Short | 0.9 |
| Max PnL Factor Long | 0.8 |
| Max PnL Factor Short | 0.8 |
Synthetic Large Cap (i.e. XRP)
| Parameter | Value |
|---|---|
| Position Impact Exponent | 2 |
| Position Impact Positive Factor | 1.40E-08 |
| Position Impact Negative Factor | 2.80E-08 |
| Position Impact Max Positive Factor | 0.005 |
| Position Impact Max Negative Factor | 0.005 |
| Position Impact Max Factor for Liquidations | 0.005 |
| Swap Impact Exponent | 2 |
| Swap Impact Positive Factor | 5.00E-09 |
| Swap Impact Negative Factor | 5.00E-09 |
| Swap Fee Factor (Positive Price Impact) | 0.0005 |
| Swap Fee Factor (Negative Price Impact) | 0.0007 |
| Position Fee Factor (Positive Price Impact) | 0.0005 |
| Position Fee Factor (Negative Price Impact) | 0.0007 |
| Borrowing Factor Long | 2.25E-11 |
| Borrowing Factor Short | 2.25E-11 |
| Borrowing Exponent Long | 1.5 |
| Borrowing Exponent Short | 1.5 |
| Funding Factor | 2.00E-08 |
| Funding Exponent | 1 |
| Min Collateral | 1 |
| Min Position Size | 1 |
| Min Collateral Factor | 0.01 |
| Min Collateral Factor Ol Long | 2.00E-09 |
| Min Collateral Factor Ol Short | 2.00E-09 |
| Max Leverage | 100 |
| Max Open Interest Long | 1,000,000 |
| Max Open Interest Short | 1,000,000 |
| Reserve Factor Long | 0.8 |
| Reserve Factor Short | 0.8 |
| Open Interest Reserve Factor Long | 0.75 |
| Open Interest Reserve Factor Short | 0.75 |
| Max PnL Factor Long | 0.5 |
| Max PnL Factor Short | 0.5 |
Synthetic Mid Cap (i.e. DOGE)
| Parameter | Value |
|---|---|
| Position Impact Exponent | 2 |
| Position Impact Positive Factor | 1.30E-08 |
| Position Impact Negative Factor | 2.60E-08 |
| Position Impact Max Positive Factor | 0.005 |
| Position Impact Max Negative Factor | 0.005 |
| Position Impact Max Factor for Liquidations | 0.005 |
| Swap Impact Exponent | 2 |
| Swap Impact Positive Factor | 5.00E-09 |
| Swap Impact Negative Factor | 5.00E-09 |
| Swap Fee Factor (Positive Price Impact) | 0.0005 |
| Swap Fee Factor (Negative Price Impact) | 0.0007 |
| Position Fee Factor (Positive Price Impact) | 0.0005 |
| Position Fee Factor (Negative Price Impact) | 0.0007 |
| Borrowing Factor Long | 2.30E-11 |
| Borrowing Factor Short | 2.30E-11 |
| Borrowing Exponent Long | 1.5 |
| Borrowing Exponent Short | 1.5 |
| Funding Factor | 2.00E-08 |
| Funding Exponent | 1 |
| Min Collateral | 1 |
| Min Position Size | 1 |
| Min Collateral Factor | 0.01 |
| Min Collateral Factor Ol Long | 5.00E-09 |
| Min Collateral Factor Ol Short | 5.00E-09 |
| Max Leverage | 100 |
| Max Open Interest Long | 1,000,000 |
| Max Open Interest Short | 1,000,000 |
| Reserve Factor Long | 0.8 |
| Reserve Factor Short | 0.8 |
| Open Interest Reserve Factor Long | 0.75 |
| Open Interest Reserve Factor Short | 0.75 |
| Max PnL Factor Long | 0.5 |
| Max PnL Factor Short | 0.5 |
