Proposal to develop automatic ETH to GMX/GLP compounding

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

ETH Rewards to - GMX - [*]GLP

Disclaimer - I know nothing about smart contract development


Autocompounding my ETH rewards into GLP while rebalancing the pools is a great idea…where do I sign up?!!

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Autocompounding my ETH rewards into GMX while rebalancing the pools is a great idea…where do I sign up?!!

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).

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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.

yes, I agree with this proposal. I compound daily but would love to automate this. I think more people would auto compound as well as it is a convenient feature.

Let’s get the party started! Sign me up!

Autocompounding my ETH rewards into GMX while rebalancing the pools is a great idea…where do I sign up?!!

I am not sure if I understand this correctly.

At the moment by staking GMX you are receiving:

  • 50% ETH
  • 50% esGMX

You are already compunding that esGMX.

What you propose is to stop receiving ETH in order to receive: 50% GMX + 50% esGMX ? :confused:

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.

I think that we should use GMX it this case.

This is a great idea. Maybe without a daily signup message. now has autocompounding vaults for both GMX + GLP

isn’t this already possible with various auto compounding DApps?

Yes, but you don’t own the esGMX in these cases.

It is rather easy to auto-compound your GMX I can share a script I used for months if anyone needs it.