It has been approximately three months since GMX began on Arbitrum, and a lot of progress has been achieved. Consequently, it is now necessary to plan for the upcoming months.
A brief overview of progress since launch
- 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 setup allowing holders to vote with their tokens on the project’s direction
- Multiple new tokens were added expanding the options available for traders
Expansion
Gambit, the predecessor of GMX, is still being used on Binance Smart Chain today and generates considerable activity. We anticipate that multiple blockchains will remain in use for the foreseeable future.
Going down this route, GMX can take advantage of the chance to increase swap and leverage activity by launching on a third blockchain.
A possible way to set this up would be:
- Launch all core contracts on Avalanche
- This would setup 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
We propose that staking and vesting be set up on Avalanche to facilitate compounding of rewards. For esGMX rewards, we suggest a distribution of 50,000 esGMX each month for 3 months and 25,000 esGMX per month for 9 months thereafter. These tokens would come from the marketing fund.
Seventy percent of the fees from Avalanche will be given out as AVAX tokens to those who have staked GLP tokens on Avalanche. The remaining thirty percent will be divided between GMX that have been staked on Avalanche and GMX that are staked on Arbitrum, with the division dependent upon the relative amounts held by each side in order to attain equal Annual Percentage Rates for GMX across both networks.
Liquidity of GMX-ETH will stay on Arbitrum to prevent it from being split up, although the possibility of having extra liquidity on Avalanche can be taken into account.
We are enthusiastic about Avalanche as it boasts an engaged user base and projects, so we will experiment with launching and operating on the chain to make a definitive judgment.
Interface Improvements
xhiroz has joined our development team and is overseeing a group of designers and frontend developers to enhance the GMX user interface.
The team has implemented a variety of visual and user-friendly enhancements that will be released in the upcoming weeks.
Incentives
We are monitoring the amount of usage each user has, which can be developed further to offer incentives for potential users to give our platform a try.
- 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
We could offer a referral program to encourage more people to spread the word about GMX, rewarding 10,000 esGMX per month to those who refer others based on the trading volume of those who sign up with their link.
Fee Discounts
Some members of the community have recommended introducing fee reductions comparable to those of FTX; this has been successful for exchange tokens and we believe it is a great idea to add more value to GMX while making the exchange more appealing for larger traders.
- $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
One way to go about this could be to demand the full fee up front and then hand out discounts as rebates each week. Rebates can be given in GMX, with a cap of 2500 GMX per week. If more than 2500 GMX is due for that particular week, the remaining rebates will come from the fees collected in ETH. The discounts are only applicable when margin trading and the amount of GMX needed for each tier can be adapted according to the average price over a 30 day cycle.
Olympus Pro
Utilizing Olympus Pro could be beneficial for boosting both the marketing fund and community development fund. Here is a quick synopsis of how it would operate:
- An amount of GMX tokens are placed into the Olympus Pro platform
- Any user can purchase GMX tokens from the platform at a slightly discounted rate, e.g. 10%, using ETH
- Discounts will vary based on supply and demand, as more GMX is purchased, the discount rate would be reduced
- GMX tokens bought through the Olympus Pro platform would be locked for 5 days
We suggest allocating 10,000 GMX from the marketing and community development funds for a period of one month in order to test this.
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 with a closer integration with GMX if possible.
We suggest providing a monthly grant of 5000 esGMX to the project. As discussed with XM92, they will allocate these tokens entirely to the public:
- 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 see the Blueberry NFTs as a way to further bond and bring together the GMX community, in combination with other product creations it would result in GMX turning into an exceptionally special project.
Token Counts
It would be beneficial to have an overview of the GMX token counts for the various plans mentioned previously:
- 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
Altogether, this would constitute an outlay of 935,000 GMX tokens over a 12-month period, within the 3 million GMX allocated for marketing and the floor cost reserve.
Core Improvements
Once the aforementioned changes have been made, further enhancements like cross-margin and paired pools can be worked on to augment the protocol.
