[GMX Bi-Weekly Update [15/12/2023]
Recap of the Previous Two Weeks
ARB Received Last Disbursement: N/A
ARB Utilized as Incentives in the Last Two Weeks: 1,279,537.59 ARB
Liquidity Pool incentives: 599,910.35 ARB
Trading incentives: 599,985.19 ARB
Migration Incentives: 79642.05 ARB
Grants Incentives: We didn’t disburse any money this week
Contracts incentivized over the last 2 weeks:
Contract address label Form 13 completed for all addresses: Yes
ARB left over: 2,235,599.77
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.
- Traders on GMX V2 received a rebate of up to 75% of open and close fees, thanks to STIP.
- In the fifth week of trading incentives, we distributed approximately 299951.94 ARB to 2593 traders.
- For the sixth-week trading incentives, we disbursed around 299958.41 ARB across 2656 traders.
- In weeks 5 and 6, we distributed a total of 599910.35 ARB to 5249 traders.
Grants Incentives
We started the grants incentives program on November 8th, with a focus on projects building in the GMX ecosystem to support them in increasing on-chain activity and bringing more liquidity to the protocol. So far, we have received around 53 applications and have accepted approximately 16 of them. We will be making upfront payments to the newly accepted grantees, with further disbursements depending on the achievement of KPI milestones.
We sunsetted our grants program on December 13th. Considering the numerous proposals already received, the STIP timeline, and the limited grants budget, the grants committee decided that this is the most sensible course of action.
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 |
| Umami | 100K ARB |
| Tradingview Alert Connector | $4K ARB |
| D2 finance | 100K ARB |
| 1,247,500 |
Grantee Highlights
- The ARB incentives received from the GMX Grant program for Vaultka have already successfully attracted approximately $4 million Total Value Locked (TVL) in the USDC Lending vault. This lending vault is exclusively used to support the GM Leverage and GM Leverage (Delta Neutral) vaults. The total TVL for Vaultka’s GM-related Vaults is $6,505,702 million.
- Fluid Protocol achieved $6 million in trading volume through their GMX-driven Telegram bot after receiving the GMX grant.
- Delta Prime has reached a TVL of $2.9M in their money market vaults since their grant was accepted.
Additional Info / Disclosures to Multisig: None
STATS
Average daily TVL:
- Overall: $493,975,568.83
- V2: $226,588,907.75
- V1: $267,398,763.99
Average daily transactions:
- Overall: 1222.13
Average daily volumes:
- V2: $163,632,724.78
- V1: $107,788,035.52
Number of unique user addresses:
- Overall: 32,311
- V2: 18,314
- V1: 16,069
Transaction fees:
- Overall: 205.34 ETH
- V2: 177.21 ETH
- V1: 28.13 ETH
Link to Dashboard showing metrics: Dune
GMX was the second biggest block space consumer on Arbitrum in the Past 30 days.
https://x.com/tokenterminal/status/1733523476294566318?s=20
Plan For the Next Two Weeks
Amount of ARB to be distributed: 1.55 million ARB
Liquidity incentives: 300K + 300K = 600K ARB
Trading incentives: 300K + 300K = 600K ARB
Grants Disbursement: 300K = 300K ARB
Migration Fees= 50K ARB
Contracts that will be incentivized:
Contract address label Form 13 completed for all addresses: Yes once
Mechanism for distribution incentives: Distributed via an Airdrop
Summary of incentives plan:
We plan to disburse around $300K ARB in epoch 7 and $300K ARB in epoch 8 as Liquidity Incentives. In the Trading Incentives program, we expect to disburse around $300K ARB, followed by another $300K ARB a week later.
The GMX Grants Program has been sunsetted for now. Due to the high number of proposals received, the timeline set by STIP, and budget constraints, GMX will no longer accept new grant applications. Instead, we will focus on supporting the existing projects that have been approved by the committee, helping them reach their milestones more efficiently. Once the milestones are completed by the grantees, we anticipate disbursing approximately $300K ARB. Additionally, there will be migration fees of around $50K ARB.
Summary of changes to the original plan: N/A