[HMX] LTIPP Application - FINAL


Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.

Applicant Name: Tao Ree

Project Name: HMX

Project Description: HMX is a perpetual protocol (PerpDEX) with cross-margin and multi-asset collateral support. HMX offers low-fees trading on crypto, FX, and commodities markets with up to 1,000x leverage.

Team Members and Roles:

Shu Wei (Co-founder, Head of Engineering)

  • 6 years in smart contract development
  • Elected as a Pythian Council Member (Link)
  • Experience working with notable projects such as OPN (previously OmiseGo) and large corporates such as Agoda

Rockman (Co-founder, Head of Marketing & Community)

  • 6 years experience in DeFi
  • Ex-TradFi professional having worked extensively in corporate banking and wealth management

Tao Ree (Co-founder & Head of Strategy & BD)

  • 6 years experience in DeFi
  • 2 years experience in banking industry
  • Ex-Management consultant

John Xina (Head of Product)

  • 6 years experience in smart contract & product development
  • Led technical consultant for a large technology consulting firm

Kim Hera (Engineering Team Lead)

  • 6 years in smart contract development
  • Experience working with various DeFi projects

Jinlong9922 (Senior Developer)

  • 4 years in smart contract development
  • 6 years in frontend development

Yingyang888 (Senior Developer)

  • 4 years in smart contract development
  • 6 years in frontend development

Kangdaiyu (Senior Developer)

  • 4 years in smart contract development
  • 6 years in frontend development

Chentang88158 (Developer)

  • 1 year in smart contract development
  • 1 year in frontend development

Asaki-Katsu (Developer)

  • 1 year in smart contract development
  • 1 year in frontend development

In addition to the team members above, we also have 2 business analysts and 6 community managers

Project Links:

Contact Information

Point of Contact: Tao Ree (@HMX)

Point of Contact’s TG handle: @taoree88

Twitter: @HMXorg

Email: Taoree@hmx.exchange

Do you acknowledge that your team will be subject to a KYC requirement?: Yes

SECTION 2a: Team and Product Information

Provide details on your team’s past and current experience. Any details relating to past projects, recent achievements and any past experience utilizing incentives. Additionally, please provide further details on the state of your product, audience segments, and how you expect incentives to impact the product’s long-term growth and sustainability.

Team experience (Any relevant experience that may be useful in evaluating ability to ship, or execution with grant incentives. Please provide references knowledgeable about past work, where relevant. If you wish to do so privately, indicate that. [Optional, but recommended]):

The selected experiences of our team members can be seen in the section above.HMX is developed from the ground up with many innovative features such as multi-collateral and cross margin support.

Since our full-scale launch in August 2023, HMX has established , which is a testament to our team commitment and capabilities to execute. We highlight some of the key platform statistics below:

  • Total trading Volume: $15Bn+
  • Avg. Daily Trading Volume: ~$90Mn+
  • Avg. Daily Trading Transaction: ~1k
  • Platform TVL: ~$29Mn (Liquidity Pool + Traders’ Collateral)
  • HLP TVL: $26Mn (Liquidity Pool)
  • No. of Unique Users: 5,600+
  • No. of Trades Supported: 174,000+
  • Telegram + Discord members: 9,300+
  • Twitter Followers: 17.7k+

For complete platform statistics, please visit:

What novelty or innovation does your product bring to Arbitrum?

HMX is a Perpetual Protocol (PerpDEX), bringing many innovations to the Arbitrum Ecosystem. We highlight the key features below:

  • Cross-margin Collateral: Allows for the sharing of margin balances across multiple positions, increasing the capital efficiency and flexibility for users.
  • Multi-asset Collateral: HMX supports multiple assets, including yield bearing tokens, as collateral (BTC, ETH, wstETH, stables, etc.) Traders are not restricted to a single collateral asset or a specific collateral type based on their trade direction. This will allow them to execute certain strategies much more effectively - i.e. carry-trade strategy.
  • Oracle Data Compression: Utilizes “Tick Math” (similar to UNIv3) in order to compress price data, making trades on HMX more gas efficient
  • Customized Index Market (CIM): Allows users to trade on a basket of related assets, betting on an overall trend while minimizing idiosyncratic risk. Our first CIM launched is the US Dollar Index Market (DIX).
  • Multi Asset Classes Support: Support 50+ markets on Crypto, FX, and Commdity
  • Adaptive Trading Fees: Variable trading fees based on trade size relative to reference liquidity depth, allowing us to list more crypto markets including ones with lower market cap, and increase Max trade size while still safeguarding LPs.
  • High Leverage: Max leverage of up to 1,000x for FX markets
  • 1-Click Trading: HMX offers a one-click trading feature through our use of account abstraction. Users do not need to sign the transactions via their wallets every time they want to execute a trade. Instead, they simply need to input their PIN to confirm and complete their trade - a much faster and simplified experience, on-par with using a centralized exchange!
  • On-chart Trading: Ability to drag and drop to adjust order (take-profit, stop-loss, etc.) directly on the chart
  • Advanced Order Types: HMX supports advanced order types such as limit order, take profit, and stop loss.
  • Subaccount Support: HMX supports multiple subaccounts under the same wallet address. Using subaccount allows users to employ different trading strategies, segregate risks, and provide an easy way for users to track their performance under the same wallet address, improving the overall user-experience.
  • Robust price oracle: HMX utilizes Pyth Network for price feeds for a fair and reliable price source. The robust setup also protects traders and liquidity providers from scam wicks or short-term rapid price movements in a volatile market condition.
  • LP protection: HMX has multiple mechanisms in place to ensure our liquidity providers are safe from various risks.
  • Instant Liquidity Provision: Efficient On-Chain computation to accurately track the real-time PnL of all active positions to enable liquidity providers (HLP) to enter or exit the pool fairly.
  • Progressive Web App (PWA): HMX’s mobile interface delivers an experience that rivals that of a centralized exchange, ensuring seamless and intuitive usability.

Is your project composable with other projects on Arbitrum? If so, please explain:

We believe in a composable, highly capital efficient DeFi ecosystem. Thus, we have built HMX for maximum composability with other projects on Arbitrum. We list the current integrations with HMX below and their benefits:

1. Leveraged Market Making:

  • Description: Our HLP token integrates with other LP tokens, namely, GMX’s GM token. As we re-hypo the GM tokens, our LPs are market making for both GMX AND HMX traders.
  • Benefits: Depositors get yields from both protocols. They continue to earn 100% of the yields from GMX while also earning additional yields from fees generated on HMX.

2. HLP Integration with Other Protocols

Pendle, Penpie, Equilibria

  • Benefit to Protocols: Provide an additional high-yield source option for users to earn fixed yields or trade on yields.
  • Benefits to HMX: Improve HLP Liquidity, which means HMX can support higher OI, and also provide more flexibility for depositors to manage their yields


  • Benefit to Vaultka: Provide an additional yield farming sources for farmers; Increase lenders’ APR%
  • Benefit to HMX: Improve HLP Liquidity, which means HMX can support higher OI

Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
PerpDEX is one of the most popular DeFi categories on Arbitrum. Many protocols in this category are well known players. However, we believe the combination of HMX’s features distinguishes itself from other players and offer additional value to the Arbitrum ecosystem. For a detailed exploration of what makes our product uniquely valuable on Arbitrum, please to “What novelty or innovation does your product bring to Arbitrum?” section above.

How do you measure and think about retention internally? (metrics, target KPIs)

Relevant usage metrics - Please refer to the OBL relevant metrics chart . For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:

General Metrics

  • Daily Active Users: A time series metric representing the daily count of unique addresses interacting with the HMXl’s contracts.
  • Daily User Growth: A time series metric representing the daily user growth interacting with the HMX’s contracts.
  • Daily Transaction Count: A time series metric representing the daily number of transactions interacting with the HMX’s contracts.
  • Daily Protocol Fee: A time series data representing the daily total protocol fee generated. This includes borrowing fees, HLP fees, trading fees, and liquidation fees.
  • Daily Transaction Fee: A time series, daily total transaction fees generated daily by interactions with the HMX’s contracts.
  • Daily ARB Expenditure and User Claims: Data on individual ARB incentive claim transactions made by users, as incentivized by the protocol. It should include the timestamp, user address, and the claimed ARB amount. The spent ARB will allow for the normalization of growth metrics.
  • Incentivized User List & Gini: Data of individual esHMX incentive claim and vest transactions made by users, as incentivized by HMX, as well as a list of traders and HLP stakers with their respective performance metrics.

HMX Metrics

  • TVL: A daily time series expressed in USD.
  • Trading Volume: A daily time series, also measured in USD.
  • Open Interest: A daily time series measured in USD.
  • List of Traders: A comprehensive record of individuals or entities that have engaged in HMX’s trading activities.
  • List of Liquidity Providers: A list of current and past participants who have provided HLP during the incentivized period.
  • Trader Net P&L Improvement: The change in traders’ profit and loss accounts, reflecting on the platform’s fairness and attractiveness to traders.
  • Funding Rate Stability: Tracks the fluctuations in the funding rates, assessing the balance between long and short positions and market sentiment.

Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan: [Yes/No]


Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest (Note: this does NOT disqualify an applicant):



Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the protocol native to Arbitrum?:


On what other networks is the protocol deployed?:

HMX is live on Arbitrum and Blast

What date did you deploy on Arbitrum mainnet?:

Our first contract was deployed on Arbitrum on 29 May 2023

Do you have a native token?:

Yes. $HMX is our Governance token. You may refer to our tokenomics here.

Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?

HMX have extensive experiences running incentives program, with many of them in place since the launch of the protocol. Most of these incentive programs are still ongoing. The incentives are distributed in the form of USDC.e, Dragon Points (loyalty points), and esHMX (escrowed version of HMX token which needs to be vested for 1 year to fully convert into HMX token) Here is the HMX platform statistics dashboard. We provide details of each program we ran below.


  • Description: We bootstrapped the HLP vault to build up the market making liquidity. The Surge program gives bonus esHMX to users who committed the liquidity to our protocol at launch.
  • In total, ~$6.3 Mn participated in the HLP Surge. See results of the HLP Surge here.

HLP Staking

  • Description: In addition to the share of protocol revenue, HLP token stakers also earn esHMX incentive rewards
  • Total incentives from staking the HLP token include:
    • Earn 65% of protocol revenue in the form of USDC.e when staked
    • Earn a share of esHMX token emission when staked
    • Earn ARB incentive from GMX’s GM token (During ARB’s STIP)
  • HLP remains one of the most attractive yield farming opportunity in its category with ~50%+ APY

HMX & esHMX Staking

  • Description: HMX and esHMX stakers earn rewards and yields from several sources.
  • Incentives:
    • Earn 25% share of protocol revenue in the form of USDC.e when staked (shared with staked esHMX & Dragon Points)
    • Earn a share of esHMX token emission when staked
    • Earn Dragon Points at 100% APR when staked
    • Earn PYTH from PYTH’s retrospective airdrop

Trader Loyalty Credit

  • Description: For every $1 of trading volume, HMX’s users will be awarded at least 1 TLC (depending on the asset that they trade). Each week, esHMX rewards will be distributed pro-rata to traders based on their TLC amount.
  • Incentives:
    • Receive a share of esHMX rewards
    • Receive a share of PYTH’s retro active airdrop

Open Interest Incentives

  • Description: Rewards to users who have active positions on HMX. The incentives are distributed pro-rata based on duration and position size.
  • Incentives:
    • Receive a share of esHMX rewards

HMX-ETH LP Staking

  • Description: To increase on-chain liquidity, we incentivized liquidity providers of the UNIv3 HMX-ETH pool.
  • Incentives:
    • Receive a share of esHMX rewards

Referral Program

  • Description: The participants of the referral program receive rebates of fees for referrers and discount on trading fees for code users.
  • Incentives:
    • Receive rebates in the form of USDC.e for referrers
    • Receive discount on trading fees in the form of USDC.e for code users

Trading Discount

  • Description: A tiered trading fee discount based on the user’s trading volume OR the amount of HMX staked. More details here.
  • Incentives:
    • Get up to 12.5% discount, paid on a weekly basis

Current Incentivization: How are you currently incentivizing your protocol?

Currently, our incentive programs include HLP Staking, HMX & esHMX Staking, Trader Loyalty Credit, Open Interest Rewards, Referral Program, and Trading Discount (You can check the description of each incentive program from the previous question)

Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program? [yes/no, please provide any details around how the funds were allocated and any relevant results/learnings(Note: this does NOT disqualify an applicant)]


Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]

We highlights our key performance metrics below

Activity Stats (as of March 11th 2024)

  • Total trading Volume: $15Bn+
  • Revenue distributed to users: $4.5Mn+
  • Platform TVL: ~$29Mn (Liquidity Pool + Traders’ Collateral)
  • HLP TVL: $26Mn (Liquidity Pool)
  • Avg. Daily Trading Volume: ~$90Mn+
  • Avg. Daily Trading Transaction: ~1k
  • No. of Unique Users: 5,600+
  • No. of Unique Traders: 3,800+
  • No. of Unique HLP Depositors: 3,200+
  • No. of Trades Supported: 174,000+

More complete stats on our Dashboard here.

Community Stats

  • Telegram + Discord members: 9,300+
  • Twitter Followers: 17.7k+
  • HMX token holders: 3,100+
  • No. of users issues Tickets Supported: 1,100+
  • No. of Community UI/UX Suggestions: 100+

Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]

Q2 2024

  • Gasless trading via Intent-based architecture
    • Allow order adjustments without paying gas, greatly improving the overall UX
    • A foundation for supporting collateral deposits on other chains, while consolidating trade transactions on Arbitrum, effectively making Arbitrum as our root chain.
    • A foundation for on-boarding users without needing a web3 wallet.
  • Launch of Governance process for HMX
    • Community have more voice can vote on protocol’s future directions
    • Users can vote on adjusting various parameters of the protocols
  • Add more markets
  • Various UI improvements

Q3 2024

  • Trading model UX improvements
    • Remove borrowing fees
    • Remove individual position’s ADL
  • Integration with other derivative protocols to allow for more efficient hedging
  • Launch of HMXv2 with undisclosed features (can discuss in private with the panel)

Q4 2024

  • Improvements on HMXv2
  • Additional cross-chain expansion
  • Listing on additional CEXs

Audit History & Security Vendors: [Provide historic audits and audit results. Do you have a bug bounty program? Please provide details around your security implementation including any advisors and vendors.]

HMX has 3 formal audits. The reports can be found below:

  • Cantina (backed by SpearbitDAO) Audit Report LINK
  • WatchPug’s Audit Report: LINK
  • 0xfoobar’s Audit Report: LINK

Security Incidents: [Has your protocol ever been exploited? If so, please describe what, when and how for ALL incidents as well as the remedies to solve and mitigate for future incidents]

No, our protocol has never been exploited.


Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size:
800,000 ARB (actual distribution amount will be based on the trading volume growth, trading tx, and new users acquired. Any unused funds will be returned.)

** Please note that the requested amount has been reduced by ~66% from the original 2,375,000 ARB. While we believe we have a strong basis to justify our original grant size, we are cognizant of the fact that the total amount of grant requested are over subscribed by ~3x. With this reduction, our ask should be more in line with the amount available and spread the LTIPP to more protocols.

All the analyses below still show the original requested number because it still reflects the reality of the current baseline and what we can achieve. The 800k ARB would still go a long way in achieving these goals.

Justification for the size of the grant :

1.) HMX is currently doing ~$90Mn in daily trading volume. (last 7-day avg.) Our target is to increase the daily trading volume on the platform to $270Mn, representing a 200% growth.

2.) With the trading volume increase, the # of trading transaction should also increase, but at a lower percentage. HMX is doing ~1k of trading tx / day. We are expecting 100% growth to ~2k tx / day.

2.) We believe these targets are realistic and achievable with the support of the grant. HMX has run trading discount programs in the past and have seen a noticeable uptick in the platform trading volume, showing that users are sensitive and respond to the decrease trading fees.


  • The 1st campaign started on 12th December 2023, where we reduced trading fees of BTC and ETH to 0.02% (50% Discount), other crypto and commodities to 0.03% (57% Discount) Details here.
  • The 2nd campaign has just started on Feb 29th 2024, where we reduced the trading fee for BTC and ETH down to 0.02% from 0.04% (50% Discount). Details here.

3.) The ARB incentives will be used for three purposes and will run over 12-week period

  • Trading fees rebate
  • Gas fee rebate
  • New users bonus

4.) Trading Fee Rebate: The protocol is currently charging trading fees between 0.01% - 0.05%, depending on the asset class, with the blended rate of ~ 0.025%. We are aiming to rebate 100% of all trading fees paid to the platform back to users. With these target and a program running for 12 weeks, it would require:

  • Total fees paid by users: $270 million * 12 weeks * 7 days / week * 0.025% = $5,670,000
  • ARB equivalent = 5,670,000 / 2 = 2,835,000 ARB (Assuming ARB = $2)

5.) Gas Fee Rebate: The gas fee for each trading transaction = 0.0003ETH (~$1.2) We are aiming to rebate 100% of the gas fees to repeated users (at least 5 txns over 3 separate days, see more details in section4) With this target and the program running for 12 weeks, it would require:

  • Total gas fee paid by users: 2k transaction * 12 weeks * 7 days / week * $1.2 / tx = $201,600
  • ARB equivalent = 201,600 / 2 = 100,000 ARB (Assuming ARB = $2 and round down)

6.) New Users Bonus: One of our objective is to attract CEX users to try DEX and convert them into long-term users. As such, we are allocating a small portion of the grant for this purpose. Qualified new users are defined as follow:

  • Wallet addresses must have received deposits from CEXs wallet - Binance, Bybit, OkEX, or Gate prior to March 1st 2024 (using past snapshot to prevent sybil)
  • Must not have used HMX before
  • To qualify, must trade at least $500 on HMX, making at least 3 txs on 2 separate days
  • Bonus awarded to the first 1,000 users who complete the tasks above
  • Users will receive 25 ARB (~$50 USD), which is in line with the bonus we have seen being given out to incentives new users on trading platforms.
  • Total budget = 1,000 users x 25 ARB = 25,000 ARB

Grant Matching:

HMX has been and will be providing incentives with its Governance Token ($HMX) alongside the grant incentives from Arbitrum. The incentives to the traders over a 12-week period will roughly be 130,000 HMX = $1,170,000 USD ($HMX price at $9)

The ARB incentives will only be used to top up the fee rebate, up to 100% of the fees paid, beyond what the HMX incentives don’t cover. In the case where HMX incentives already cover the trading fees paid by users, no ARB incentives will be distributed. This method of distribution will ensure there is no incentives for sybil and wash trading.


  • Total weekly fees paid = $100,000
  • HMX incentives distributed = $40,000
  • ARB incentives used = $60,000


  • Total weekly fees paid = $39,000
  • HMX incentives distributed= $40,000
  • ARB incentives used = $0

With the esHMX incentives in mind, the required grant amount will be:

  • Trading Fees Rebate = $5,670,000 - $1,170,000 = $4,500,000 = 2,250,000 ARB
  • Gas Rebate = 100,000 ARB
  • New User Bonus = 25,000 ARB

TOTAL = 2,375,000 ARB

Grant Breakdown:

The ARB incentives will be used for three purposes and will run over 12-week period, with the following allocation. (Refer to the grant size justification above on the rationale for this split.)

Purpose ARB Amount ARB %
Trading Fees Rebate 2,250,000 94.7%
Gas Fee Rebate 100,000 4.2%
New Users Bonus 25,000 1.0%
Total 2,375,000 100%

With the reduction in grant size requested. Our updated use of grants are as followed:

Purpose ARB Amount ARB %
Trading Fees Rebate 742,000 92.8%
Gas Fee Rebate 33,000 4.1%
New Users Bonus 25,000 3.1%
Total 800,000 100%

Please note that we keep the new user bonus amount the same, while doing a pro-rata reduction on the Gas Fee & Trading Fee rebate.

To make sure the grant goes to best use, we have anti-sybil and anti- wash trading mechanics in place:

Purpose Anti Sybil / Wash Trading Mechanics
Trading Fees Rebate - Users cannot get back more than the actual fees paid (including all incentives), so there is no incentives to watch trades
Gas Fee Rebate - User cannot get back more than the actual gas paid
- Only rebate to users who make at least 5 txs on at least 3 separate days in each week to incentivize repeated usages
New Users Bonus - Wallet addresses must have received deposits from CEXs wallet - Binance, Bybit, OkEX, or Gate prior to March 1st 2024; since snapshot has passed, users cannot sybil.
- Must not have used HMX, GMX, or Gains before (No wallet tx interaction with these protocols)

Distribution Timeline

  • To ensure we have enough grant to run for the entire 12-week campaign, we will cap the the max cumulative distribution amount according to the formula below. This is to safeguard against the case where we achieve a higher trading volume than expected and will run out of the grant early, but allow for a catchup in the later weeks

MaxDistributeAmount = Week# * (800,000 / 12)

  • The distribution will be done on an epoch basis with a total of 12 epochs, and each epoch lasting 1 week.

Funding Address: 0x24d53494dc9e260a6b2ddb0b40c1ed222471779c

Funding Address Characteristics: [Enter details on the status of the address; the eligible address must be a 2/3, 3/5 or similar setup multisig with unique signers and private keys securely stored (or an equivalent custody setup that is clearly stated). The multisig must be able to accept and interact with ERC-721s in order to accept the funding stream.

This address is a 2 / 3 gnosis safe address

Treasury Address:

HMX does not have a DAO wallet at the moment.

Contract Address:

Contract address will be provided at a later stage once we deploy the distribution logic.


Clearly outline the primary objectives of the program and the Key Performance Indicators (KPIs), execution strategy, and milestones used to measure success. This helps reviewers understand what the program aims to achieve and how progress will be assessed.


Leverage the ARB incentives to accelerate 1.) trading volume growth 2.) trading transaction growth, and 3.) Attract new users, especially CEX users, to the HMX platform, converting them into long-term users.

  • ARB incentives will help subsidize trading costs for users (trading fees + gas cost), making the barrier to try HMX lower, accelerating its adoption. We would like to emphasize here that HMX already offers one of the lowest trading fees amongst PerpDEX. Our fees for BTC and ETH markets are on-par with major CEXs, such as Binance, so the primary objective here is to grow the size of the PerpDEX ecosystem on Arbitrum (through acquisition of new users) and not to take market shares from existing PerpDEX on Arbitrum. To this effort, we have marketing initiatives lined up to run concurrently during the rewards period to
  • We are also providing a new user bonus targeting CEX users, who have not traded on any PerpDEX before to try out HMX.
  • Being a grant recipient would help increase HMX’ visibility and credibility, acting as another social proof for many users on the Arbitrum ecosystem to give HMX a try.
  • By rebating up to 100% of the trading fees, we also lower the cost for arbitrageurs to execute carry trade strategies, which would help balance open interest skew faster, positively impacting the protocol. This approach would reduce one-sided exposure for HLP and stabilize the overall funding rate, leading to lower overall costs for traders, and improving UX.
  • We believe HMX has many unique features and strong value propositions. We hope to turn a significant percentage of these new users into long-term users even after the incentive program ends, creating sustainable value for the Arbitrum network.
    • We have a tier-based trading fees discount program. So once users achive a high-tier with high discount, they will be incentivize to continue using HMX
    • Once users start trading and have open positions on the platform, it becomes inconvenient to move as they would have to wind down all the positions before being able to remove their collateral.

Execution Strategy:

1.) We will allocate the necessary development resources to prepare for the campaign and upgrade our UI so users can easily track their statistics and rebate live.

2.) The trading fees rebate and gas fee rebate will be calculated on a weekly basis, every Thursday. The USD-equivalent value of ARB to be rebated will be determined on a weekly basis (epoch) at the time of calculation.

3.) To ensure we have enough grant to run for the entire 12-week campaign, we will cap the the max cumulative distribution amount according to the formula below. This is to safeguard against the case where we achieve a higher trading volume than expected and will run out of the grant early, but allow for a catchup in the later weeks

MaxDistributeAmount = Week# * (800,000 / 12)

4.) Distributed ARB on each epoch will be released linearly over a 90-days period. Users can claim them any time.

  • To rewards loyal users and increase platform’s stickiness, we will allow for accelerated releasing schedule for users who continue to trade on HMX after the incentivization period
  • The maximum acceleration will be 30 days
  • The exact formula for acceleration rate will be finalized at a later date. It will be a function derived from their total fees paid and trading volume during the incentivized period vs. after the period.

Epoch1: April 4th - April 11st
Rewards Distribution: Released Linearly from April 11st - July 10th

5.) We have marketing campaigns lined up that we will run concurrently during the incentives period (using our own marketing budget) to achieve the maximum impact for the grant.

  • Advertising on top DeFi-focused publications such as Alpha Made Here, DeFiant, Coinmarketcap Reserach, and Messari, etc.
  • Utilize our social channels, KOLs, and other marketing channels available to us (e.g., ad banners) to promote and maximize the awareness for the upcoming fees rebate campaign.

What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?

1.) ARB will be released over 3 months, but with an accelerated releasing schedule available for returning traders. This will be a big factor for continued usage beyond the incentive periods for some users who want to accelerate the unlock. HMX also has a strong track record of continuous product improvements, so during that time, our improved features will also help improve the stickiness to the users.

2.) At the very least, for the users that don’t continue to trade on HMX, they will still return to the platform to claim the vested rewards over the next quarter, which will give us opportunity to market any new product & feature release to them along the way.

3.) Even after the LTIPP runs out, HMX will still have its own incentive programs running which is rewarding and competitive, which will make the platform “sticky.”

Specify the KPIs that will be used to measure success in achieving the grant objectives and designate a source of truth for governance to use to verify accuracy. [Please also justify why these specific KPIs will indicate that the grant has met its objective. Distribution of the grant itself should not be one of the KPIs.]

To measure the success of the grant objective, the following KPIs are selected based on its impact on our objective:

  • Trading Volume

    • Targeting a 200% growth from baseline of $90Mn / day → $270Mn / day
  • Trading Transaction

    • Targeting a 100% growth from baseline 0f 1k tx / day → 2k tx / day
    • Source of Truth: HMX Dune Dashboard

Grant Timeline and Milestones: [Describe the timeline for the grant, including ideal milestones with respective KPIs. Include at least one milestone that shows progress en route to a final outcome. Please justify the feasibility of these milestones.]

We list the key milestones below. Please note that each Epoch is 1 week. The cumulative stats is based on the target set in section#3.

Epoch Cumulative Trading Vol (Mn) Cumulative Tx (k) Cumulative New Users
Epoch1 $1,890 14,000 100
Epoch2 $3,780 28,000 200
Epoch3 $5,670 42,000 300
Epoch4 $7,560 56,000 400
Epoch5 $9,450 70,000 500
Epoch6 $11,340 84,000 600
Epoch7 $13,230 98,000 700
Epoch8 $15,120 112,000 800
Epoch9 $17,010 126,000 900
Epoch10 $18,900 140,000 1,000
Epoch11 $20,790 154,000 1,100
Epoch12 $22,680 168,000 1,200

We will evaluate the milestones achieved every 2 weeks and try to make adjustment to the campaign design if the actual volume, # of tx, and new users acquired are materially below the target.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem? [Clearly explain how the inputs of your program justify the expected benefits to the DAO. Be very clear and tangible, and you must back up your claims with data]

This grant will generate awareness, increase HMX platform trading volume & transaction, onboard new users and get them to try many of our upcoming feature release over the next quarters.

The grant is directly used and tied with the growth of our platform (trading volume & tx growth.) And the fact that our base trading fee is currently one of the lowest in the industry, the grant is being used very effectively and not being used to subsidized an above-market-rate fees.

Asset Class Trading Fees (% of Position Size)
BTC & ETH 0.02%
Other Cryptocurrency 0.05%
FX 0.01%
Commodity 0.05%

The fact that HMX could continue to put up strong statistics and maintain ourselves as one of the top PerpDEX in the space over the past several months despite not having received the STIP is a testament to our strong product market fit.

  • $15Bn+ cumulative trading volume
  • $75-$100Mn daily trading volume
  • ~200 DAU

The team’s ability to consistently shipping out new features and improvements is a testament to our commitment to creating value to the Arbitrum ecosystem. The grant will accelerate the growth of HMX and open a door for us to the next stage of growth.

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream? [Yes/No]


SECTION 5: Data and Reporting

OpenBlock Labs has developed a comprehensive data and reporting checklist for tracking essential metrics across participating protocols. Teams must adhere to the specifications outlined in the provided link here: Onboarding Checklist from OBL . Along with this list, please answer the following:

Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO? Are there any special requests/considerations that should be considered?


Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?

*First Offense: In the event that a project does not provide a bi-weekly update, they will be reminded by an involved party (council, advisor, or program manager). Upon this reminder, the project is given 72 hours to complete the requirement or their funding will be halted.

Second Offense: Discussion with an involved party (advisor, pm, council member) that will lead to understanding if funds should keep flowing or not.

Third Offense: Funding is halted permanently

Yes, we will provide bi-weekly program on the Arbitrum forum thread. We will allocate the necessary resources to create Dune Dashboards specifically for this program for easy and transparent performance tracking.

Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains. (NOTE: No future grants from this program can be given until a closeout report is provided.)


Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: [Y/N]



Hello @HMX ,

Thank you for your application! Your advisor will be SeedLatam Gov @SEEDGov

Please join the LTIPP discord and ping your advisor in the general chat so they can create a new channel and start communicating with you.


@HMX join Arbitrum LTIPP

A notorious copycat of others stealing ideas/innovation from other perp a classic leach just a knock off poverty gmx . On top of that they are actively steering traffic , users, tvl , and resources to other competitors. they have a questionable past and several red flags as well. This is crazy they are literal conflicting representation what the arbitrum community should support and assist.


Thank you for sharing your thoughts about our project. Just a reminder that this space is for discussing our LTIPP proposal, and all constructive criticism is welcome.

While I’ve considered your comment, I’d like to correct a few points for you and others who may share your perspective:

  1. Stealing ideas/innovation from other perp and a knock off poverty GMX.

From the start, our leveraged trading is very different from what GMX offers. We provide multi-asset collateral and cross-margin support while GMX’s feature supports isolated margin and single asset collateral. Hence, our code-based is totally different from GMX since the very beginning. In addition to that, we also introduced a few innovative features that are unique to HMX:

  • Instant Liquidity Provision, allowing LPs to deposit and withdraw from the HLP pool without a lock-in period, thanks to our specially derived formula. Read more here
  • Oracle Data Compression, which updates up to 100 prices in one transaction while keeping gas costs low, enabling us to scale and support more assets. Read more here
  • Adaptive Trading Fee, which reduces risks associated with oracle manipulation for mid-cap assets by using an equation that accounts for volatility changes and CEX order book depth. Read more here
  • Customized Index Market, which allows trading on a basket of related assets, using geometric mean to track USD changes against the currency basket. Read more here

We’re also excited about the upcoming intent-based architecture set to roll out at the end of the month.

  1. Actively steering traffic, users, TVL, and resources to competitors

I believe you’re concerned about our deployment on Blast. However, if you examine the situation thoroughly and impartially, you’ll see that we are not diverting anything from Arbitrum to competitors. Even with SURGE on Blast, we did not fund the campaign using our governance token. Instead, we utilized what we won from the Blast Big Bang competition. And if you review the list of Big Bang winners, we’re not the only Arbitrum-based recipients.

  1. Questionable past and several red flags

I’m not sure what concerns you’re referring to, but I’m happy to address any issues you feel are uncomfortable or seem like red flags to you. If you’re referring to our time as Perp88, we view that period as foundational. It helped us understand the perp DEX market and gather invaluable insights from our early community. These insights were crucial in refining the requirements that shaped and brings HMX to where it is today. Additionally, I will share testimonials from our happy community and let the readers determine our team’s character. All these can be found in our Discord.

Hope this is clear enough

While we believe we have a strong basis to justify our original grant size request of 2,375,000 ARB, being cognizant of the fact that the grant requests are over subscribed by ~3x, we will reduce our asks by 66% to 800,000 ARB.

With the reduction, our ask should be more in line with what is available and spread the LTIPP to more protocols.

@Matt_StableLab We have finalized our application and ready to move it to a “Final” state. Please let us know the next step. Should we change the title of the post?

@cliffton.eth Hello Cliffton, we are done editting the application, please help mark our application as Final.

Thank you!

Hey there, I’ve amended the title to reflect that this is FINAL. All the best!

1 Like

No. Just absolutely no.

@SEEDGov, @coinflip and other advisors / council members, the size of the ask does not make sense. Even with the lowered ask.

When looking at protocols, a few things should be top of mind.

#1 is contributions to the ecosystem

HMX has not given the DAO or network any value. No participation in governance, no collaboration with other DAO members to improve the DAO through any channels.

#2 is innovation

HMX migrated to Arbitrum from Polygon after a dismal launch, and only picked up steam after copying several mechanics from Arbitrum native protocols including GMX and Gains (the 1ct and account abstraction they are calling ‘innovation’ was forked almost directly from the Gains experience).

If you go through their list of features, it’s all features cherry picked from competitors with a terrible wrapper on top. I’m sure if you dig into their code repos that you’ll find direct evidence of this.

Their volume is high, but if you compare their volume or fees vs TVL, the stats are an order of magnitude lower than GMX, which is highly indicative of wash trading.

#3 NOT grant / incentives farming

This project is going from network to network deploying either for airdrop farming or foundation/DAO grants.

They claim to only be on Blast as an alternate chain, but that is just not true. HMX also received a huge grant from Metis under another name (see one of their co-founder’s posts parading this: https://twitter.com/shutsuwei88/status/1767126421103845615) to launch there and are most likely pursuing other opportunities on other chains.

For Metis and Blast, they are directly encouraging their own Arbitrum users to go farm these opportunities on OTHER networks for their initial airdrop.

All that to be said, we need to promote our most loyal builders that are going to contribute to the ecosystem through the DAO, technical contributions, or focused growth on Arbitrum.

There are too many great perp protocols on Arbitrum to give this team a sizable grant.

Hello Drake,

Thank you for taking the time to go through our proposal. While we appreciate you looking out for the interest for the Arbitrum community, the comments you made are based on misinformation and inaccuracies.
We understand that you may not have been following our announcements or updates closely, so we hope we can use this opportunity to share with you some concrete data and statistics, to help you get up to speed on our progress and contribution to the DAO, and hopefully this would change your views towards what we’re building at HMX and our ask for the LTIPP program :slightly_smiling_face:.

As a top-5 perpetual DEX on Arbitrum by both volume and TVL, we have made many contributions to the Arbitrum ecosystem through partnership with other protocols and participation in the governance. Our contributions can be categorized into multiple types:

  1. Partnership with other protocols: Since our launch on Arbitrum in June 2023, we have partnered and integrated with many other protocols on Arbitrum. HMX’s ecosystem of protocol now boasts a stacked roster of:
  • Stella:
    • Integration of $HMX/ETH pool for leveraged strategies
    • Addition of $HMX lending vault on Stella
    • Private loan of 3,000 HMX ($30,000) to lending vault to support vault liquidity
    • Example tweet
  • Vaultka:
    • Integration of HLP pool on Vaultka
    • Incentives of 400 $HMX ($4,000) per month
    • Example Tweet
  • Pendle:
  • Penpie
    • Integration of HLP pool to for yield strategies
    • Bribery for HLP pool on Penpie
    • Example Tweet
  • Equillibria
    • Integration of HLP pool for yield strategies
    • Bribery to HLP pool on Equillibria
    • Example Tweet
  • Possum Labs
    • Integration of HLP pool on upfront yield strategies
    • Marketing support
    • Example tweet

In addition to the examples above, we’ve also hosted a special marketing campaign to promote all the protocols within our ecosystem and show support to decentralization, aimed at onboarding the next wave of users to Arbitrum. The campaign focuses around providing a free mint 3D NFT to users who use the product of our partner protocols within the specified period.

You can find the link to the campaign details here and the link to the final NFT distributed to the users here.

  1. Distribution of value to users on Arbitrum: At HMX, not only do we contribute value to the Arbitrum ecosystem through our product, collaboration, and innovation, we have also contributed back to the users in terms of monetary value. Some of details are as follow:
  • Revenue Distribution to users: To date we have distributed almost $7 million of protocol revenue back to our users (HMX stakers & HLP depositors). This is the clearest form of contributing to the Arbitrum ecosystem, creating earning opportunities for stakers and holders alike.

  • esHMX Airdrop campaign: When HMX launched its token, we did a one-time airdrop of our governance tokens, totaling 2.5% of the total supply. At the current market value, that is USD $2.5 million worth of tokens. This is another example of our contribution back to Arbitrum.

  • Distribution of PYTH rewards from retroactive airdrop of Pyth Network: As a recipient of $PYTH Network retroactive airdrop program, we have decided to re-distributed the airdrop rewards back to our traders and stakers. By the end of this month (March 2024), we would have already distributed 1,000,0000 $PYTH or ~$900,000 at the current market price to users, and will continue to distribute more rewards.

If you sum up all of the value from these initiatives, HMX has already given back over $10.4 million worth of value back to our users on Arbitrum.

  1. Revenue generation for Arbitrum chain:

In addition to contributing key statistics to the Perp DEX sector, we’re also enhancing Arbitrum Network’s revenue and metrics. In the last 30 days, our main entry point contract, the Limit Trade Handler, paid over $133.27k in gas fee, placing itself in the top 20 by gas used on the Arbitrum Network. This level of activity translates to an annualized $1.6Mn in gas fee.

  1. Participation in the Arbitrum DAO: We are active builders, with a track record of contributing to the DAO in the past (Serious People: Proposed KPIs for Arbitrum Grant Programs (LTIPP) - #5 by SeriousKeith). Our primary focus, however, has been on enhancing our product and developing HMX. While our involvement in the DAO process may not be prominently displayed, we are confident that our contributions are evident in various other areas, as highlighted above.

Perp88 was our first iteration of the PerpDEX where our goal was to learn and try to find product market fit and get users feedback. We launched Perp88 without the Governance token, so all the usage and traffic were organic. Many leading protocols on Arbitrum also had their origins / earlier iterations on other chains. We decided to launch on Arbitrum with our 2nd iteration (HMX) because of the vibrant ecosystem and community.

There are many ways to innovate and one way can be refining and building upon proven concepts. In the dynamic DeFi space, earlier protocols serve as sources of inspiration and building blocks, guiding newer innovations. GMX and Gains have significantly influenced our journey, contributing to our current success.

While we embrace drawing inspiration from other protocols, labeling us as a fork is inaccurate. Our codebase was developed from scratch, without forking GMX or Gains. Please feel free to review our codebase.

PS: Account abstraction is a concept that has been around for some time, and no protocol has a monopoly on the concept.:slightly_smiling_face:

Wash Trading:
We have received baseless accusations of wash trading on HMX numerous times, even during our application for STIP last year. These accusations are factually incorrect as, mathematically and economically, there is no incentive for users to wash trade. Furthermore, we maintain direct contact with the top traders on HMX, all of whom are real individuals :joy:.

Let’s delve into the actual data. For instance, last week:

Total trading fees paid amounted to ~$455k USD
Total incentives provided equaled: $214k USD

This means that incentives are running at ~47% of the total fees paid - i.e., approximately 47% rebate on trading fees. These figures are easily verifiable on Dune Dashboard.

Fees / TVL
We offer one of the lowest trading fees among PerpDEXs (e.g. 0.02% for BTC and ETH). This is a response to be competitive while some other PerpDEXs received STIP and were able to subsidize their trading fees. Also, our trading model is different from GMX where we don’t need a full reserve for profit and hence was charging a lower borrowing fee to traders.

Build on Arbitrum

As far as our commitment to the Arbitrum chain, let’s give a concrete example. HMX was a recipient of the PYTH retrospective airdrop alongside many other protocols. To date, we are on track to distribute 1,000,000 PYTH by the end of March exclusively to users on Arbitrum. Even though the Pyth team did not have a mandate on how to spend it, we chose to allocate a majority to users. As far as we know, no other protocols have done this yet.

We think it’s short-sighted to be limited to just one chain for many reasons. For one, as our current design goes, some incentive rewards (such as esHMX) can only be claimed on Arbitrum. What this means is that users of other chains will necessarily have to come to Arbitrum if they want to claim these rewards - a great way to convert them into Arbitrum users if they are not already one.

Additionally, regarding the project launching on Metis, if you actually have been following us, then you would know that it is a licensed fork of HMX launching on Metis, similar to how Camelot DEX has their licensed fork on Metis, called Hercules. The project on Metis is operated by a different team, with HMX serving as advisors. There are economic flowbacks from the project back to HMX stakers, benefiting Arbitrum users who stake HMX and participate in this collaboration.

I appreciate the response, but you are muddying the waters.

For DAO contributions, you pointed to one single post. Is that all you have done?

Many DAO participants have been in a variety of LTIPP meetings and helped build the LTIPP to what it is today, but nobody has seen you on the calls or participating beyond the single post you added.

Were you at Gov Hack? No. You were sponsoring a party with Metis while not contributing to any of the three days of Gov Hack. This speaks volumes about where your focus is.

Regarding the Wash Trading discussion. You conveniently leave out the fact that a substantial amount of volume is being driven by speculation about your Metis project and a possible airdrop for participants on your Arbitrum DEX.

Does it add temporary network activity. Yes. Are you advertising and encouraging an eventual migration of users to Metis? Yes.

Don’t be fooled by this team. They are not Arbitrum aligned and you will likely see them deploying on 6-7 chains this year while pursuing heavy grants on each network.

The concerns from the STIP still carry as well. I encourage all council members, delegates, and DAO members to review their STIP proposal and the feedback that led to a failed vote: [HMX][FINAL][STIP-Round1] - #9 by HMX

Key points:

  • Asked for almost $2m in incentives with less than 4 months of being on Arbitrum
  • GMX rehypothecation and forking comments (it’s very obvious that the entire go-to-market had a massive vampire attack on GMX)
  • @CastleCapital pointed out that the proposal was egregiously high but also that rewards were not equitable and that the incentives heavily outweighed actual fee generation

It’s clear from your reply that you’re not interested in facts or the information presented, but rather in spreading misinformation and FUD. Despite our efforts to provide you with information, facts, references, and figures to address your initial comments, you choose to ignore them and instead go off on new tangents and speculations. While we welcome feedback and criticisms, we won’t accept and will defend against baseless accusations that undermine the integrity of our project.

This is categorically FALSE. We NEVER advertise or promise an airdrop to users on another chain for trading activities they conduct on Arbitrum.We also don’t have a plan for this in the future either. Again, I cordially invite you to please share with us specific evidence for your claim here.

We have clearly explained with evidence in both our LTIPP proposal and our response to your comments that the trading volume increased due to our trading fee reduction program. Initially, such baseless accusations could be attributed to a lack of awareness and research. However, the persistence of this narrative despite our explanations indicates a malicious intent on your side.

Regarding the comment on “vampire attack on GMX”, we’ve addressed this in our STIP. This term is a gross mischaracterization as our integration with the GLP/GM pool has been to rehypothecate them - similar to how many platforms reuse yield-bearing tokens as collateral, etc. We’ve never removed liquidity from GMX—not a single penny. The only time we removed liquidity was to migrate from the GLP to the GM pool. The fact that you use the term rehypothecation and vampire attack in the same sentence here perhaps show that you don’t have a full understanding on the differences of these basic DeFi terms?

@Matt_StableLab @cliffton.eth We’ve encountered challenges with an account that doesn’t engage in good faith conversations, specifically making unfounded accusations and inaccurate statements without evidence. This not only undermines the integrity of projects that invest significant effort in their proposals but also goes against community guideline by spreading speculation and misinformation. We would greatly appreciate it if you can help address this and ensure a more constructive and fair discourse within the community. :pray: :pray:

This isn’t fud. I’m sharing community concerns shared by many ecosystem participants. Just look at your original STIP proposal and the comments there.

If you don’t show commitment to Arbitrum’s ecosystem (for example not participating in Arbitrum Gov Hack but hosting a Metis event during Eth Denver, while contributing almost nothing to governance for the last YEAR), you shouldn’t be able to ask for a sizable grant amount.

Arbitrum alignment is really important, and the ecosystem thrives on trust. How can we trust HMX to contribute to the Arbitrum ecosystem if you haven’t done so already and are already activating on a heavy multi-chain expansion while asking for huge grants from Metis, farming incentives on Blast, and probably more upcoming networks?

Just bringing up major concerns, and calling these concerns ‘unfounded’ is not helpful.

Wow, what an amount of trashing of one of the best products on Arbitrum.

Conflict of interest remark - I’m not affiliated with HMX, nor participate in private or any other sales or know anyone from the team directly. I have limited upside in the token though.

Let me cover all the arguments in this thread:
0)No innovation
That is quite silly argument. I’m a huge fan of GMX, but lol. HMX with cross-margin account support with a lot of collateral assets that actually works as a good CEX is quite innovative compared to where they started with GMX. GMX still doesn’t have the ability for two positions under the same assets, not speaking about non-trivial collaterals.

Personal experience:
When there were incentives for HMX and were Open Interest, I personally came majorly for HMX on Arbitrum. So, a 7 digits of TVL came to Arbitrum just for this exchange. I left shortly after the incentives went down and OI dropped, and I don’t use HMX for the very same reason - lack of incentives.

2)Not loyal to the chain
No shit that HMX is looking for other opportunities to survive when their home chain trashes them out every single time they request small incentives to keep them alive. The perp dex war is all about incentives and retention. The once who have the most of incentives usually wins by a huge margin. And the one with even a better product that doesn’t have the incentives - can’t win. I didn’t follow much, but it looks like HMX didn’t have incentives for a lot of time and has them on a far lesser scale than other, more politically correct competitors.

3)Vampire attack on GMX
It’s a ridiculously stupid argument. They build the whole thing on GMX liquidity and incentivize users to add liquidity to GMX. It’s a respectful and decent way to engage with a protocol. If you think that this is opportunistic or vampiric - you have no idea of what are vampiric attacks in the first place.

4 ) HMX is bad for "not participating in governance.
What do you mean by this in the first place? To sit down and discuss on weekly calls ReallyImportantMatters? Or write an enormous amount of simulation of contribution to show the “ReallyConsernedContributor” spirit, get a grant, and grind it?
It’s a $100-300 per hour job. Find people to do it. It’s not something valuable that should be deciding about the Grant future. The job of developers is to deliver, not to do politics.
The guys actually deliver a good product. Yes, they don’t simulate or play the political battles, but let’s be honest - political battles in DAO’s are usually a useless and opportunistic thing.

The Arbitrum interest is in supporting good products and good ideas to obtain good developers. By alienating the devs like HMX Arbitrum might end up with a politically correct, very engaged products, yet no one would be using them due to them being outdated for like 5 years.

HMX, from a UI / UX perspective and from capital efficiency, is one of the best proposals right now on the whole market. On the level would be only giants like Vertex, Drift on Solana, and Aevo. And HMX is better in some way or another than any of those.

Most likely, this post will actually damage the chances of HMX getting anything and will break perception, but lol. It’s just the most made-up lobbyism-motivated criticism I ever read and it would be a horrific mistake by Arb not to support this one.