GMX Bi-Weekly Update [17/11/2023]

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 1,714,286

ARB Utilized as Incentives in the Last Two Weeks: 212,549

Contracts incentivized over the last 2 weeks:

Contract address label Form 1 completed for all addresses: Yes

ARB left over: 1071737.522689028776 ARB

Plan for leftover ARB:
Continuing with Liquidity Incentives, Trading Incentives, and Grants Incentives campaign.

Summary of incentives:

:bulb: Liquidity Incentives

GMX’s S.T.I.P. proposal prioritises creating a range of highly liquid perpetual and spot pools for GMX V2. These GM pools are yield-generating, capital-efficient and composable with other protocols: they form a robust DeFi base layer for the Arbitrum ecosystem.

The GM Liquidity Incentives are divided into two types:

  1. Incentives for GM Liquidity Providers
  2. Incentives for migrating GLP liquidity to the GM pools

Incentives for GM Liquidity Providers

  • Allocations of Incentives for GM Liquidity are based on weekly epochs.
  • Every epoch, a set number of ARB will be allocated per each GM.
  • A time-weighted average of users’ GM balance is taken for the whole week to calculate proportional rewards.
  • ARB incentives will be airdropped directly to GM holders after the completion of each epoch.
  • APR and other information shown on the Earn/Pools page is a rough estimate; actual rewards depend on the final calculations at the end of each epoch.
  • The amount of ARB for each epoch and the conditions for distribution under this program may be amended from time to time, to make sure they meet the goals of GMX’s STIP proposal in the most cost-effective way.

Incentives for migrating GLP to GM liquidity

  • To encourage existing GLP liquidity providers to provide liquidity to GMX V2, a limited-period migration program has been set up.
  • Users will be eligible for Fee Rebates for manually redeeming GLP, as long as they purchase GM tokens thereafter with the same wallet during that epoch.
  • The maximum Fee Rebate will be based on the USD value of the GM purchase, in case the value of GLP redeemed prior was higher.
  • On the first 100m ARB equivalent of eligible migrations, they will be rebated the lower of 0.25% or actual redemption fees paid.
  • On the next 100m ARB equivalent of eligible migrations, they will be rebated the lower of 0.10% or actual redemption fees paid.
  • This campaign has a planned maximum cap of up to 350,000 ARB and is on a first-come, first-serve basis.
  • GM mint should occur in the same weekly epoch as the GLP burn, to be eligible for migration incentives.
  • ARB incentives will be airdropped directly to GM holders after the completion of each epoch.
  • Epochs reset weekly on Wednesday at 00:00 UTC.
  • This program will end on December 31st, and any unutilised funds will be redirected within the GMX STIP initiative.
  • We are conducting an experiment with the GLP-GM migration program.

:chart_with_upwards_trend: Trading Incentives

GMX aims to reduce trading fees on the decentralized perpetual exchange to a level comparable to the VIP tiers of leading centralized exchanges. By offering lower trading fees, GMX aims to incentivize traders to transition from centralized exchanges (CEXs) to decentralized exchanges (DEXs). This move towards lower fees will encourage more users to trade on-chain.

  • While trading on GMX, you’ll earn trading fee rebates in ARB tokens.
  • These fee rebates can add up to cover the total cost of GMX’s base trading fees (though never more than that).
  • Not all trades will be equally incentivised, with rebate multipliers for specific trading actions. The goal is to incentivise utilisation and not to pay for trading activity.
  • Trading incentives will be paid out against all qualified trades during every weekly epoch.
  • We will also be conducting trading incentive experiments to onboard new traders on GMX.

With the support of Arbitrum’s STIP grants, traders have the opportunity to receive rebates of up to 75% of trading fees on opening & closing positions on GMX V2 across all crypto markets.

These reductions provide the traders the opportunity to trade on-chain without having to custody their funds, while still enjoying an effective cost comparable to VIP-tiers from leading CEXs.

The program will be reviewed and may be adjusted to optimise the goal of showcasing the GMX trading experience. This is especially important for our integration partners who rely on these on-chain markets, and the growing group of power, casual and institutional traders who are coming on-chain.

Trading incentives will be capped at 300k ARB during this first one-week epoch of trading incentives.

This program — as with all campaigns under STIP — will be monitored for fair play, and participants deemed to abuse the program’s intent may not receive rebates/incentives at the sole discretion of the Grants Committee.

:blueberries: Grant Incentives

We launched our grants program on November 8th, and so far, we have received 13 applications within a span of approximately 7 days. We are currently in the process of receiving and reviewing more applications. As of now, we have accepted one grant application for the Binance Wallet.

  1. Binance Wallet
    GMX is thrilled to be one of the first dApps available on the new Binance Web3 Wallet. Soon, users will be able to conveniently, securely, and non-custodially trade on GMX directly from the wallet.

Additional Info / Disclosures to Multisig : GMX Grants Mult-sig Address - Google Sheets

ARBITRUM STATS

Average daily TVL:

  • Overall: $422,231,562.14
  • V2: $76,324,008.90
  • V1: $346,085,007.19

Average daily transactions:

  • Overall: 1,562

Average daily volumes:

  • V2: $62,982,659.73
  • V1: $115,414,413

Number of unique user addresses:

  • V2: 922
  • V1: 1098

Transaction fees:

  • ETH Fees Spent By Users: 18.47 ETH

Link to Dashboard showing metrics: Dune
Open Blocks

Plan For the Next Two Weeks

Amount of ARB to be distributed:
Liquidity incentives: 300K ARB + 350K ARB = 650K ARB
Trading incentives: 300K ARB + 350K ARB= 650k ARB
Grants Disbursement: $200K ARB = 200K ARB
Migration Fees= $50K ARB

Contracts that will be incentivized:

Contract address label Form 1 completed for all addresses: Yes

Mechanism for distribution incentives: Distributed via an Airdrop

Summary of incentives plan:

We have planned to disburse $300k ARB in the upcoming week, followed by $350k ARB in liquidity incentives. Additionally, in the following week, we will disburse $300k ARB for trading incentives, with another $350k ARB to be disbursed the week after that.

Currently, our grants program is active and has received a substantial number of applications. The grants committee is currently reviewing these applications. Once the review process is complete, we will disburse funds upfront and for the milestones completed by grantees. This disbursement will amount to approximately $200k ARB and $50k ARB in Migration fees.

Our goal is to support innovative projects and initiatives that align with our mission to incentivize GMX v2 and have the potential to make a significant impact within the GMX and Arbitrum ecosystem.

Summary of changes to the original plan: N/A

Disclaimer

The information provided is prepared in good faith, but the definitive results are the actual on-chain distributions. Factors such as time zones and fluctuations in exchange rates may impact the accuracy of exact numbers. Please consider these potential variations when assessing the accuracy of the submission.

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