GMX Update 2
A quick look at the developments since the launch
It has been ~3 months since the launch of GMX on Arbitrum, and much progress has been made since the last update:
From $150 million in volume traded to $6.5+ billion
From $1 million in liquidity to $100+ million
Vesting was implemented, completing the initial tokenomics plan
Advanced orders were launched, allowing users to set limit, take-profit and stop-loss orders
GMX governance was set up, allowing holders to vote with their tokens on the project’s direction
Multiple new tokens were added, expanding the options available for traders
To keep moving forward, we’ve gathered feedback from discussions with the community to prioritize and work on the next steps.
Expansion
GMX still runs on Binance Smart Chain today and does a decent amount of volume. For the short term, at least, it is our view that multiple blockchains would continue to have active usage.
Following this line of thinking, launching on a third blockchain provides an opportunity for GMX to facilitate more swaps and leverage volume.
A possible way to set this up would be:
Launch all core contracts on Avalanche
This would set up a new GLP token that is separate from the Arbitrum GLP token
Allow staking of GLP and GMX for esGMX and AVAX rewards on Avalanche
Staked GMX and esGMX on Avalanche would earn Multiplier Points
Allow vesting of esGMX on Avalanche
Allow bridging of GMX from Avalanche to Arbitrum and vice versa
GMX-ETH liquidity will remain on Arbitrum
Staking and vesting should be set up on Avalanche to allow for rewards to be more easily compounded. For esGMX rewards, we propose distributing 50,000 esGMX a month for 3 months and 25,000 esGMX a month for 9 months after. These esGMX tokens would come from the marketing fund.
70% of fees from Avalanche would be distributed as AVAX to staked GLP tokens on Avalanche. 30% of fees will be split between GMX staked on Avalanche and GMX staked on Arbitrum; the split will depend on the relative amounts staked to target equal APRs for GMX on both chains.
GMX-ETH liquidity will remain on Arbitrum so as not to fragment liquidity, though options to have additional liquidity on Avalanche could be considered.
We are keen on Avalanche as it has active users and projects. We will try out launching and working with the chain more, before making a final decision on it.
Interface Improvements
We have expanded the development team with xhiroz joining us. xhiroz manages a team of designers and front-end developers who are helping to improve the interface of GMX.
The team has made quite a few visual and usability improvements, and these should be rolling out over the next few weeks.
Incentives
We have started tracking volumes per user, and this can be expanded upon to provide incentives for new users to try out the platform.
A possible incentives program could look like this:
A budget of 20,000 esGMX could be allocated for a one-month period
On Wednesday of each week, traders would be airdropped esGMX tokens based on their amount of volume traded
The reward pool could also be split between long and short traders, which should help balance the ratio of long and short positions
Referral Program
A referral program would be helpful to incentivize more publicity of GMX. We could distribute 10,000 esGMX per month to referrers based on the trading volume of the people who sign up using their referral link.
Fee Discounts
A few community members have suggested implementing fee discounts similar to FTX. This has worked well for exchange tokens, and we think it is a great idea to bring more utility to GMX while making the exchange more attractive for larger traders.
Possible fee tiers:
$100 GMX: 3% discount
$1000 GMX: 5% discount
$5000 GMX: 10% discount
$10,000 GMX: 15% discount
$50,000 GMX: 20% discount
$100,000 GMX: 25% discount
$200,000 GMX: 30% discount
$500,000 GMX: 35% discount
$1,000,000 GMX: 40% discount
$2,500,000 GMX: 50% discount
A possible implementation would be to charge the full fee upfront and to distribute the discounts as rebates each week. Rebates could be distributed as GMX, up to a maximum of 2500 GMX per week.
If the total rebates for a week exceed 2500 GMX, then the rest of the rebates could be distributed as ETH from the fees received. The discounts will be for margin trading only, and the amount of GMX required for each tier can be routinely adjusted based on the average price over a 30-day period.
GMX Blueberry Club
GMX Blueberry Club is a community NFT project led by XM92, and we are very excited for what is being built. We would like to support the project through a closer integration with GMX if possible.
To facilitate this, we propose giving a grant of 5000 esGMX per month to the project. As discussed with XM92, they will distribute these tokens fully to the community:
Every week a snapshot is taken of each user’s Blueberry NFT holdings
At the end of the month, if a user held at least one Blueberry NFT for 4 weeks and at least 1 GMX staked, they would share from the reward pool based on the number of staked GMX, staked esGMX and staked Multiplier Points they have on Arbitrum at the time of distribution. Holding more than one NFT will not increase the bonus.
We view the Blueberry NFTs as an opportunity to further strengthen and unite the GMX community. Together with product developments, it would lead to GMX being a very unique project.
Token Counts
Quite a few of the plans mentioned above involve distributing GMX tokens, so an overview of the counts would be useful:
Avalanche rewards: 50,000 esGMX per month for 3 months, 25,000 esGMX per month for 9 months, 375,000 tokens
Trading incentives: 20,000 esGMX for one month
Referral program: 10,000 esGMX per month, 120,000 GMX for one year
Fee Discounts: Max of 10,000 GMX per month, 120,000 GMX for one year
Olympus Pro: 20,000 GMX per month, 240,000 GMX for one year
GMX Blueberry Club rewards: 5,000 esGMX per month, 60,000 GMX for one year
In total, this would be an expenditure of 935,000 GMX tokens over one year, within the budget of 3 million GMX allocated to marketing and the floor price fund.
Core Improvements
Once the above have been implemented, improvements such as cross-margin and paired pools can be worked on to further improve the protocol.
As always, we are grateful for the support from the community. Thank you for all the feedback and help, and we look forward to bringing GMX much further together with everyone here.
Connect with us
Website: https://gmx.io/
Twitter: https://twitter.com/GMX_IO
Telegram: https://t.me/GMX_IO
Announcements: https://t.me/GMX_Announcements
Discord: https://discord.gg/H5PeQru3Aa
Github: https://github.com/gmx-io
Disclaimer
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