Title: List GMX on Arbitrum as a Collateral Option on Notional V3
Author(s): Anthias.xyz Team
Submission Date: 12 October 2023
The following is a proposal by the Anthias.xyz team to onboard GMX as a collateral currency option on Notional V3. The Anthias team thinks this could prove valuable for the Notional community and thus would like the community to consider & discuss onboarding GMX as a collateral type.
- Token contract address (Arbiscan)
- Project Website
- Project Github
- Social media/community channels
- Protocol Analytics Dashboard (Dune)
- The asset is an ERC-20 token:
- The asset has been traded for at least 3 months:
- A sufficiently robust Chainlink oracle (verified tier) for the asset exists (link to https://data.chain.link/);
- Yes (verified tier): https://data.chain.link/arbitrum/mainnet/crypto-usd/gmx-usd
- At least two high-quality audits have been conducted:
- Yes: Audited by ABDK and Quantstamp: https://github.com/gmx-io/gmx-contracts/tree/master/audits
- The token is held by more than 1,000 unique wallets:
- Yes: Currently held by over 296,000 addresses: $37.11 | GMX (GMX) Token Tracker | Arbiscan
- The current float (circulating supply/max supply) is above 25%:
- Yes: Float is currently at 68.67%: https://www.coingecko.com/en/coins/gmx
- The token has more than $2m of on-chain DEX TVL (Mainnet) or more than $500K of on-chain DEX liquidity on a Layer 2 chain where a Notional deployment exists:
- Yes: GMX currently has over $24.5M in TVL on Uniswap V3 on Aribitrum: Uniswap Info
- Provide a brief overview of the proposed asset and its underlying project.
- $GMX is GMX’s utility and governance token. GMX is a decentralized perpetual swap and spot and exchange. GMX is currently on Arbitrum and Avalanche and first launched in September of 2021. GMX aims to provide a better trading experience by offering traders lower swap fees and zero price impact trades. Zero price impact trades are trades that are executed exactly at the marked price, even for large trades.
- How is the asset currently used (staking, collateral on other lending protocols, etc.)? Provide relevant activity KPIs.
- GMX can currently be staked directly on GMX’s platform to earn rewards.
- Detail why you believe the project should be added to Notional either as a collateral asset or as a tradable asset and the potential benefits of doing so. Explain why you think the demand for this asset is sufficient to list it on Notional.
- Since its launch, GMX has seen impressive growth and adoption from traders. The project continues to excel as a leading decentralized perpetuals exchange. Allowing GMX to be onboarded as a collateral asset would open another avenue for Notional to lead the path for lending and borrowing on Arbitrum. GMX succeeds in meeting the necessary criteria of the collateral asset onboarding process as outlined by the Notional community.
- Provide information regarding the organization behind the project.
- GMX is a decentralized, permissionless perpetual swap and spot exchange. GMX is founded by anonymous founders. The project started as a merger between XVIV and Gambit. Speculation continues to circle around who the founders of the protocol are.
- Provide information regarding past hacks or major bugs and how the team addressed them.
- On September 18, 2022, GMX suffered a price manipulation attack for the amount of $565,000 on the AVAX/USD pair. To prevent the exchange from such exploitation, the team later capped the short and long open interest for AVAX.
- Market Cap: $327,381,260
- 24H Volume: $7,951,243
- GMX Volatility (GMX price compared to ETH over past 12 months): GMX has a volatility of 13.69% over the past 90 days, according to CoinCodex.
Chart via Coin Codex
GMX DEX Liquidity (DEX Guru): GMX has over $11M of DEX liquidity at the time of posting this proposal according to DexGuru
GMX DEX Slippage: GMX slippage for a 1M USDC swap is currently about 2.3%. Liquidity is sufficient to support the asset with a relatively high supply cap over time based on demand.
The increase in circulating supply of GMX will vary depending on the number of tokens that get vested, and the amount of tokens used for marketing / partnerships. The forecasted max supply is 13.25 million GMX tokens. The largest ownership percentages of GMX are held by contracts and exchanges. The largest individual holder of GMX on Arbitrum holds approximately 0.66% of circulating supply at the time of posting this proposal.
The Anthias team would like to gauge sentiment and hear thoughts from the Notional community with regards to onboarding GMX as a collateral type to Notional V3. Please share thoughts/questions in the comments of this forum post, and feel free to reach out to 0xBroze (@0xBroze on Discord or @OxBroze on Telegram) with any questions.
Anthias is a risk management organization that also builds tools for easily monitoring liquidation risk for DeFi borrowing/lending markets. The Anthias team has shipped multiple grants for Euler, Aave, Compound, and more. We also recently posted the collateral asset onboarding proposal for cbETH on Notional V3.