GMX Successfully Completes Distribution Plan For Arbitrum GLP Holders
Claims are now live, making every affected GLP liquidity provider whole and closing the chapter on the GMX V1 incident.
GMX is today announcing the successful completion of its Distribution Plan to compensate liquidity providers affected by the recently disclosed GMX V1 vulnerability.
Eligible users can now claim their distribution in the GMX dApp: https://app.gmx.io/#/stake
You will find the claims interface at the bottom of the Staking page, alongside an FAQ answering common questions about the GLP incident.
Please note: Wallets that hold the full amount of claimed GLV for at least 3 months will receive a share of $500,000 in retention incentives, made available by the GMX DAO.
GMX V2 was entirely unaffected by the incident and continues to facilitate billions in weekly volume and thousands of trades every day.
Despite the initial disruption, GMX has sustained growth in trading volume and liquidity deposits over the past month, reflecting renewed confidence in the platform’s resilience and governance.
“This positive outcome is proof of what a strong, united community can achieve,” comments Jone Zee, GMX Communications contributor. “Faced with a dreaded scenario, we’ve managed to turn a challenge into an opportunity to reinforce trust. I’m legitimately proud of all the builders involved with GMX, and the extended community that supported us. Let’s keep pushing DeFi forward, together."
Details of the Claims Process
About $44 million in value is being distributed, making all impacted Arbitrum GLP holders whole and marking a favorable resolution to the security challenge GMX faced. In addition to the recovered GLP funds, this figure includes $2 million in complementary funds from the GMX Treasury.
The distribution is issued in the form of GLV tokens, the upgraded liquidity vault product at the core of GMX V2. The GLV token was designed as a yield-optimising successor to the GLP token, and enables seamless integration into GMX V2's liquidity ecosystem.
Upon claiming, eligible users will receive two GLV tokens in equal proportions:
GLV [BTC-USDC]
GLV [WETH-USDC]
Together, these GLV tokens equate to approximately 25% WBTC, 25% ETH, and 50% stablecoins. This composition closely resembles that of the original GLP in terms of asset exposure.
Custom solutions for DeFi protocols that integrated GLP are currently being developed in collaboration with them. The relevant protocols will announce these.
Once GLP redemptions are enabled on Arbitrum, any remaining GLP that users hold can be sold normally. Enabling redemptions is expected to take place in about 10 days.
Hold your GLV and earn Retention Incentives
GLV is fully liquid and permissionless. Users can either redeem their GLV for the underlying assets, or hold the tokens to earn yield from trading fees generated on GMX.
To encourage long-term participation, a $500,000 GLV incentive pool will be distributed proportionally to those who keep their allocated GLV. If you hold your distributed GLV for at least 3 months without selling or transferring, you'll receive a pro-rata share.
Recipients have complete flexibility to redeem their received GLV immediately, but will forfeit their share of these incentives.
Note that all GLV products feature auto-compounding, facilitating seamless growth. This growth rate amounts to a 20-30% historical average annualized performance.
Understanding Liquidity on GMX: GLV Vaults & GM Pools
The GLV vaults offer an innovative solution built on top of the isolated GM liquidity pools of GMX V2. Users can provide liquidity to a single market through GM, or hold GLV for an automatically optimising ‘set-and-forget' liquidity solution.
Different GLV vaults are currently available, enabling LPs to provide liquidity with either Bitcoin or Ether on Arbitrum, or Avax on Avalanche:
GLV [WETH-USDC]
GLV [BTC-USDC]
GLV [WAVAX-USDC]
Every GLV Vault holds multiple GM pool tokens and dynamically rebalances its liquidity towards the best-performing pools. Essentially, GLV is an enhanced version of GLP that maximizes capital efficiency for liquidity providers.
Note: There are no lock-up periods for providing liquidity on GMX.
Analytics for Liquidity Providers
Insightful data dashboards are available for users who provide liquidity on GMX through GM or GLV. To evaluate the base performance of the GLV vaults on Arbitrum and Avalanche, see: https://dune.com/gmx-io/gmx-analytics#v2-glv-pools
This section of the main GMX Analytics Dashboard displays the long-term price trends of the two GLV vaults, as well as GLV’s performance compared to a standard Uniswap V2 LP position with the same two assets (the Benchmark Comparison).
For granular performance data on the isolated GM pools, as well as the GLV vaults, please visit the updated V2 LP Dashboard on Dune: https://dune.com/gmx-io/v2-lp-dashboard
About GMX
GMX is the go-to non-custodial exchange for trading perpetuals and spot, providing a seamless trading experience across public blockchains. The permissionless multichain DEX offers deep liquidity, low swap fees, and up to 100x leverage. It features one-click trading, support for numerous collateral types, a complete suite of trading and price alerts, and reliable sub-second Chainlink oracle pricing.
Trading on GMX is made possible by isolated GM pools and capital-efficient GLV vaults, enabling anyone to provide liquidity and earn market-leading fees. Thanks to these composable liquidity pools, and an ecosystem of over 80 integrations, GMX serves as a foundational base layer for multichain DeFi.
Join the community:
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Announcements: https://t.me/GMX_Announcements
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Documentation: https://docs.gmx.io/