Recap of the Previous Two Weeks
ARB Received Last Disbursement: 900,000 ARB
ARB Utilized as Incentives in the Last Two Weeks: 950,770.12 ARB
Liquidity Incentives: 385,883.81 ARB
Trading Incentives: 549,886.31 ARB
Grants Incentives: 15,000 ARB
Contract address label Form 56 completed for all addresses: Yes
Contracts incentivized over the last 2 weeks: ****
ARB left over: 1,382,816.13 ARB
Plan for leftover ARB: Continuing with Liquidity Incentives, Trading Incentives, and Grants Incentives campaign.
Summary of incentives:
Liquidity Incentives
GMX V2 works with a range of highly liquid pools that facilitate all perpetual and spot trading activity. These GM pools are yield-generating, capital-efficient and composable with other protocols: they form a foundational DeFi base layer for the entire Arbitrum ecosystem.
The GM Liquidity Incentives on Arbitrum are divided into three types:
- Incentives for Liquidity Providers to the GM pools of GMX V2
- Incentives for the newly launched Single-Asset GM pools.
- Incentives for the GLV Liquidity Vault
Incentives for GM Liquidity Providers
- All GMX’s GM pools on Arbitrum, except the swap-only pools, are eligible for liquidity incentives. These incentives boost the native returns based on pool fees.
- The allocation of incentives for GM Liquidity is based on weekly epochs. Every epoch, a set number of ARB will be allocated per GM pool.
- 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’ wallets after each epoch. Please note that there is a threshold of 0.1 ARB to qualify for the rewards airdrop.
- The APYs and other information shown on the Earn/Pools page are rough estimates; actual rewards depend on the final calculations at the end of each epoch.
- The amount of ARB for each epoch may be amended from time to time to ensure they meet the goals of GMX’s STIP-Bridge incentives in the most cost-effective way.
- The Liquidity Incentives are expected to be maximised at around 25% APR for each GM pool.
- We recently launched the GLV vaults, which have received fantastic traction from LPs and gathered around 15 million in TVLwithin just one week of launch.
Incentives for new Single-Asset GM pools
- GMX will especially incentivise its single-sided GM liquidity pools, which have just one token backing the market on both the Long and Short sides. These liquidity pools do not have a stablecoin component.
- Any newly launched Single-Asset GM pools will also receive liquidity incentives to help bootstrap deep, healthy markets quickly.
Trading Incentives
GMX aims to bring trading fees on the decentralised perpetual exchange to 0.02% on average – a level that is competitive with the trading fees of the VIP tiers of leading centralised exchanges. Lower trading fees will encourage traders to move on-chain, helping to convert CEX users to DEX users.
- Traders receive rebates of up to 25% of trading fees on opening & closing positions across all GMX V2 crypto markets on Arbitrum
- These fee rebates can add up to cover almost the total cost of GMX’s base trading fees, when combined with a GMX referral-code fee discount (though never more than that).
- Not all trades may be equally incentivised, as the goal is to incentivise optimal utilisation rather than pay for trading activity.
- Trading incentives will be paid out against all qualifying trades during the weekly epoch.
- The trading fee rebate will be airdropped as ARB tokens on a pro-rata basis, at the end of each epoch. Please note that there is a threshold of 0.1 ARB to qualify for the rebate airdrop.
- Total trading fee rebates will be capped during every epoch. If the rewards cap for the epoch has been reached, the actual rebate could be less than the maximum rebate percentage of 75%.
- In the 9th week of trading incentives, we distributed approximately 199,956.03 ARB to 1855 traders.
- In the 10th week of trading incentives, we distributed approximately 349,930.28 ARB to 2133 traders.
- In weeks 9 and 10 we distributed 549,886.31 ARB to 3988 traders.
Grants Incentives
We started the grants incentives program on June 3, 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 29 applications and have accepted approximately 9 of them. We will be making upfront payments to the newly accepted grantees, with further disbursements depending on the achievement of KPI milestones.
We closed down our grants program on June 24th. Considering the numerous proposals already received, the STIP Bridge timeline, and the limited grants budget, the grants committee decided this was the most sensible course of action.
Grantee Highlights
- After its grant was approved, KnightSafe generated a trading volume of around $184 million and TVL deposits of 32 million in its vaults.
- Goldlink was able to achieve $1M TVL on their lending pools and reach a total of $654K in total borrow volume deployed
Additional Info / Disclosures to Multisig: N/A
STATS
Average daily TVL:
- Overall: $362,653,639.58
- V2: $295,467,522.64
- V1: $75,310,570.91
Average daily transactions:
- Overall: 420
Average daily volumes:
- V2: $129,839,437.51
- V1: $13,187,135.52
Number of unique user addresses:
- Overall: 13,197
- V2: 11,278
- V1: 1,920
Transaction fees:
- Overall: 5.28 ETH
- V2: 4.45 ETH
- V1: 0.84 ETH
Link to Dashboard showing metrics: https://dune.com/gmx-io/gmx-analytics
Plan For the Next Two Weeks:
Amount of ARB to be distributed: 1,350,000 ARB
Liquidity Incentive: 500,000 ARB
Trading Incentive: 700,000 ARB
Grants Incentive: 150,000 ARB
Contracts that will be incentivized:
Contract address label Form 56 completed for all addresses: Yes
Mechanism for distribution incentives: Distributed via an Airdrop
Summary of incentives plan:
As part of the liquidity incentives, we intend to distribute approximately 240,000 ARB during epoch 11 and an additional 260,000 ARB in epoch 12. As for the Trading Incentives program, we plan to allocate around 350,000 ARB initially, followed by another 350,000 ARB one week later.
Currently, our focus is on assisting accepted grantees in achieving their milestones more efficiently before the conclusion of the STIP Bridge program. Once the grantee’s milestones are successfully completed, we anticipate disbursing approximately $150,000 ARB.
Summary of changes to the original plan: N/A