[GMX] Bi-Weekly Update [1/12/23]
Recap of the Previous Two Weeks
ARB Received Last Disbursement: 3,428,572
ARB Utilized as Incentives in the Last Two Weeks: 1,415,158.17 ARB
Liquidity Pool incentives: 599964.54 ARB
Trading incentives: 538759.87 ARB
Migration Incentives: 5433.76 ARB
Add Grants Incentives 271,000 ARB* Intended to be distributed.
Contracts incentivized over the last 2 weeks:
Contract address label Form 7 completed for all addresses: Yes
ARB left over: 3,541,865
Plan for leftover ARB: Continuing with Liquidity Incentives, Trading Incentives, and Grants Incentives campaign.
Summary of incentives:
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:
- Incentives for GM Liquidity Providers
- Incentives for migrating GLP liquidity to the GM pools
Incentives for migrating GLP to GM liquidity
- To encourage existing GLP liquidity providers to provide liquidity to GMX V2, an experimental 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.
Trading Incentives
- GMX reduced the trading fees on the decentralized perpetual exchange to a level comparable to the VIP tiers of leading centralized exchanges.
- Traders traded on-chain without needing to custody their funds and enjoy trading fees as low as ~0.015% on Arbitrum.
- During the third week of Trading Incentives, approximately 248k ARB tokens were airdropped to 2,265 GMX traders as a refund for fees paid.
- In the fourth week of Trading Incentives, there was a significant distribution of ARB tokens as well. A total of 291K ARB tokens were airdropped to a total of 1,860 GMX traders as a refund for fees paid.
- During week three and week four, we distributed a total of 538K ARB tokens to approximately 4125 traders as trading incentives on GMX. These traders enjoyed trading fees as low as ~0.015% on Arbitrum as a result, a level comparable to leading VIP tiers of centralised exchanges.
- The purpose of this airdrop was to provide a refund for the fees that these traders had previously paid. This initiative not only rewarded existing traders but also incentivized and promoted participation in trading activities by new users. Overall, this event has been a success so far, and showcases the commitment of the platform to its users.
- Traders on GMX V2 received a rebate of up to 75% of open and close fees, thanks to STIP.
Grants Incentives
We initiated the grants program on November 8th with a focus on increasing on-chain activity and bringing liquidity to the protocol. Thus far, we have received approximately 37 applications, out of which we have accepted around 13 applications. We have provided upfront payment for the grantees whose applications have been accepted, in the amount of $271,000 ARB. The next payments for the accepted grantees will be made upon completion of the milestones.
The committee is currently in the process of reviewing various applications that are in the review phase. In addition to this, the ecosystem contributors and the grants committee are actively working with the applicants whose proposals have been rejected, offering guidance and support to help them enhance their proposals and increase their chances of success.
We intend to disburse around $271,000 over the weekend. The delay in funds disbursed occurred due to legal and KYC reasons.
Sharing a list of Accepted applicants:
| Project Name | Amount Asked (Funds allocated) |
|---|---|
| Binance Wallet | 28.5K ARB |
| GMD Protocol | 100K ARB |
| Perpie | 100K ARB |
| GMX v2 Telegram & Discord Analytics - Sniper Monke | 10K ARB |
| RabbitHole | 100K ARB |
| Vaultka | 100K ARB |
| Rodeo Finance | 100K ARB |
| Tradao | 100K ARB |
| Python SDK by Sniper Monke | 55K ARB |
| Dolomite | 100K ARB |
| Delta Prime | 100K ARB |
| Fluid | 100K ARB |
| Symbiosis | 50K ARB |
| 1,043,005 ARB |
Additional Info / Disclosures to Multisig: None
STATS
Link to Dashboard showing metrics: Dune
OpenBlocks
Average daily TVL:
- Overall: $463,897,509.12
- V2: $149,950,314.61
- V1: $313,948,525.15
Average daily transactions:
- Overall: 2480
Average daily volumes:
- V2: $125,933,210.24
- V1: $77,972,725.22
Number of unique user addresses:
- Overall: 19,226
- V2: 6,016
- V1: 14,512
Transaction fees:
- ETH Fees Spent By Users: 32.40 ETH
Plan For the Next Two Weeks
Amount of ARB to be distributed: Plan For the Next Two Weeks
Amount of ARB to be distributed: 1.65 million ARB
Liquidity incentives: 300K + 300K = 600K ARB
Trading incentives: 300K + 300K = 600K ARB
Grants Disbursement: $400K = 400K ARB
Migration Fees= $50K ARB
Contracts that will be incentivized:
Contract address label Form 7 completed for all addresses: Yes
Mechanism for distribution incentives: Distributed via an Airdrop
Summary of incentives plan:
We intend to disburse around $600K ARB in the upcoming two weeks as liquidity incentives. $300K will be disbursed each week as liquidity incentives. We also plan to disburse $300K in ARB for trading incentives, followed by an additional $300K in ARB to be distributed in the week after that for trading incentives.
The grants committee is currently reviewing the new applications. Once the review process is complete, we will disburse some of the funds upfront for newly accepted grantees, and for the accepted grantees who have completed the milestones, we will be paying after the milestone completion. This disbursement will amount to approximately $400k ARB and $50k ARB in Migration fees.
Summary of changes to the original plan: N/A