Suggestion for Permissionless Listing

Proposals
1

Following the Ethos of a perp dex, i am proposing that team would enable the capability to allow permissionless token listing for isolated synthetic markets.

After the implementation of v2.3, I would suggest enabling an weekly auction based permissionless listing system, where protocols could bid to automatically list their tokens. Or fixed cost example 100k to instantly list their token on GMX.

Bidded funds would be used to bootstrap the isolated market. While 5% of bidded funds be used to repurchase GMX from the open market and be sent to burn address.

Synthetic to prevent exploitative nature, where protocols could drain the pool usdc using token supply.

While additionally to combat price manipulation, would recommend a criteria where the listed token needs 500k-1m liquidity within arbitrum dex for a minimum of 1 month. With minimally 40% of the pool being composed of USDC/ETH.

Timeline
Auction based bidding smart contract should not take a long time for developers to create. As there are several variants of such smart contract in the public.

Audit of the said smart contract, then followed by adjusting routers to allow smart contract to launch pool weekly, and corresponding gmToken is burnt to lock the amount while 5% of amount is sent to gmx buyback address/another contract to buy and burn it.

Hope core contributors could comment on the suggestion. As referencing other forum discussion i see protocols wanting to list on GMX, was thinking as a perp we do not want to spread GLV too thin, but also we would like to allow more tokens to be listed.

Proposed smart contract

Either an auction based bidding/instant listing for fixed cost example 100k usdc, the smart contract would hold the funds and emit an event call, backend script capture the event, then pull datapoints from etherscan/defillama to filter if criteria is met.

Script would update contract to reject token or accept the token for immediate listing based on data points retrieved.

Should token be rejected, prevent token address from being resubmitted for a month to prevent spam.

Could deduct gas cost to do these checks from given funds.

2 Likes
2

Interesting proposal.

Some bottlenecks would be GLV liquidity, Chainlink Data Streams feed availability, and the need for adequate market parameters from Chaos Labs for any listing, I feel.

It’s a powerful idea, thanks for suggesting a potential way to realise it.

1 Like
3

The listing process has over time gone through some iterations.

  • like how all new asset addition stopped on GLP because of the difficulty and risk of adding new assets.
  • Governance actively deciding for adding new markets to V2
  • then the election of the Listing committee which is currently responsible for this today

If we go all the way back to X2 (part of XVIX that rolled into the GMX DAO) permissionless listing of markets was one of the main features, effectively allowing anyone to deploy leveraged loan markets secured by available chainlink feeds.

I do think a permissionless process is interesting and possibly an end goal, but we should also be intellectually honest, some platforms that (claim to) have permissionless listing may still have msigs/nodes that can actually over-rule that process, mechanisms for restricting visibility for such created markets.

Definitely think there is merit in seeing how we can continue to evolve the listing process.

4

Love this idea overall especially if project itself would help be an LP.

1 Like
5

permissionless listing would be a great end-goal, with several criteria for listers to list their tokens in, with the amount of liquidity provided, for example.
love to get this done in the next big gmx extension :wink:

1 Like
6

Understood on ur perspective and jonezee response, based on the suggestion, the backend script could check the following criteria and have a set parameters to list the tokens at. Only if there is a price feed else we would reject it.

Additionally do not wish to spread GLV too thin, thus the suggestion to use bidded funds/listing price to bootstrap the pool with a vesting mechanism so protocol cant just pull liquidity and manipulate pools.

Additional criteria could be added to backend scripts and these datapoints are available via api calls, additionally suggest the checks of composition of pools to be made up of at least 40% usdc/eth to prevent manipulation along with minimum Liquidity Depth on arbitrum at least numbers etc could be tweaked.

Additionally liquidity can come from users whom choose to LP similar to how uniswap Lp works free market, If required GLV will step in only if token is verified and risk calculated by chaos lab. That be my idea of how permissionless listing would work.

I do understand the risk concerns etc, same risk parameters can be said on uniswap LP. Creating a path forward for faster listing/more tokens on GMX.

“Just a food for thought, could follow chainlink validator concept gmx validator to be part of listing process, 66% of validator has to sign to approve listing” all running the backend script to check if criteria is met. If a validator approves a token but it actually fails to pass the criteria they get slash, else rewards be given via a commission from bidded/listing funds. Just a random idea dont have to implement this portion.

2 Likes
7

thank you for this suggestion, i think it is a good idea, agree that we could work on this after v2.3, perhaps together with some solution for oracleless markets (may be possible using an internal AMM, but will need to look into this more deeply to work out the details and if it makes sense)

2 Likes
8

Appreciate the feedback X, yeah let’s see after v2.3 and loop back ig, would like to see how the final implementation be like too :slight_smile:

1 Like