Introduction
In January 2025, the DAO approved a request to migrate protocol-owned liquidity from the GMX/ETH Uniswap LP position. 994.70 ETH (approx. $3.2M at the time) and 69,132.83 GMX (approx. $1.6M) were collected through claiming fees from POL. The DAO also moved 21 NFTs under its control into the timelock multisig to be utilised for future incentivization.
The Labs team has already begun utilising the fees claimed from POL. The distribution was divided into three parts, two of which have already been successfully implemented.
Actions Taken:
-
25,000 GMX was added to single-asset liquidity via the liquidity pool GM: GMX/USD [GMX-GMX]
-
Approximately $1.7M worth of WETH was converted and allocated to the two Arbitrum GLV vaults: GLV [WETH-USDC] and GLV [BTC-USDC]
The process of improving CEX liquidity is ongoing, but there have been unforeseen administrative delays. In the meantime, the other portions of the proposal have already been implemented.
This proposal seeks DAO approval to redeem a batch of NFTs, specifically NFTs 19, 20, 21, 2726, 16797, 16810, 17080, and 69115, from the set of 21 DAO-owned NFTs currently held in the DAO timelock multisig. Upon redemption, the ETH will be converted into SOL and WBTC. The redeployed assets will be utilised across Solana and Botanix and within the GMX ecosystem to support strategic initiatives like GM and GLV.
Rationale
The primary goal of this proposal is to support GMX’s multi-chain expansion. The redeemed liquidity will bootstrap and incentivise liquidity in the new ecosystems, specifically Solana and Botanix. By converting ETH from the redeemed NFTs into SOL and WBTC, we aim to deepen market presence, improve trading experiences, and expand the deep GMX liquidity markets beyond the Arbitrum ecosystem. For example, redeploying these funds into new ecosystems like Botanix will help ensure GM and GLV assets have deep liquidity from the first day of launch.
Specification
-
This proposal seeks to redeem the following NFTs from the DAO-controlled timelock multisig: 19, 20, 21, 2726, 16797, 16810, 17080, and 69115.
-
Upon redemption, the underlying ETH will be converted into SOL and WBTC.
-
The acquired SOL and WBTC will bootstrap liquidity on Solana and Botanix within GMX to support GM and GLV.
Conclusion
This proposal continues the DAO’s proactive approach to treasury management and long-term protocol growth. By redeploying its existing assets, the DAO can strengthen its multichain presence. We request that the community and the DAO support this initiative and help GMX expand its footprint in the newer ecosystems.
As GMX expands across multiple chains, more effective oversight of the DAO’s treasury is important. We suggest forming a Treasury Committee, a small group that will actively manage the treasury, make informed decisions about fund allocation, and provide regular updates to the community. This approach will enhance transparency, improve accountability, and enable the DAO to respond more swiftly when needed.