Similar to how LooksRare allows stakers to opt-in to auto compounding; This proposal is to explore how GMX can enable users to automatically compound their ETH rewards into a larger stake.
Instead of manually compounding the ETH staking rewards. I would like to explore a feature which allows users to sign a message allowing the GMX protocol to claim, swap, and stake GMX/GLP on their behalf at least once per day.
This system would promote a positive feedback loop which grows exponentially with the protocol. Not only creating steady buying pressure on GMX, but also granting users a larger pool of GLP to trade from. The protocol can use this steady capital inflow to automatically rebalance the GLP pool (AUM) into the token which is most depleted, improving the robustness of the token.
It would look something like this
Auto-Compound ETH Rewards to - GMX - [*]GLP
Disclaimer - I know nothing about smart contract development
Its a fine idea. Assuming implementation doesnt cost an undue HR cost to implement.
If it distracts from pushing forward major dev initiatives, I would say it might be more of a want than a need. Plus auto-compounding adds x number of daily tx’s to the system (x being number of glp holders opting into this function).
Definitely more of a want than a need, and a valid point about assuming the implementation cost. I would be interested to see a mock-up of what the development would look like. regardless i think it is low hanging-fruit to help bolster the GLP pool.
The idea is to allow the GMX protocol to compound just the ETH for you. It would take the user accrued ETH and swap it from the pool to GMX should you opt to auto-compound into more GMX. Or to take that ETH and swap it into the asset which is most depleted within the GLP reserves.