GXV V2: Interface & Market Paramaters

PROPOSAL SUMMARY

Update the gmx-interface codebase to work with the next GMX V2 open-source contracts developed by Labs (https://github.com/gmx-io/gmx-synthetics/blob/main/README.md),
Establishing initial parameters for fees and ranges within these V2 Markets.
Establsh a risk committee in the 90 days after mainnet deployment to support all GMX markets

UPDATE GMX-INTERFACE WITH V2 CONTRACTS

Confirm support for Labs integrating the current GMX V2 contracts, as well as any future versions of these, into the gmx-interface codebase found at https://github.com/gmx-io/gmx-interface.
The protocol will benefit from a diversity of front ends utilizing the V2 codebase as a base but potentially include customization, improvements, and regionalization for various communities.
This proposal does not establish the Front End Fee which will be separately brought for discussion and voting.

NEW MARKET FEE SETTINGS

Below are the proposed range and initial fees for testing; a final range should be confirmed by governance closer to full deployment:

Increase / Decrease Position:

Approved Range: 0.00% - 0.10% of trade size.
Initial Paramater: 0.05% of trade size.

Price Impact:

Approved Range: Adjusted based on liquidity on reference exchanges.

Swap Fees:

Approved Range: 0.00% - 0.50% on crypto assets and 0.00% - 0.50% on stableswaps.
Initial Paramaters: 0.05% on crypto assets and 0.01% on stableswaps.

Funding Fee

Approved Range: Based on the difference between long and short open interest for a market and a multiplier value.

Borrow Fee

Approved Range: Based on the utilization percentage of the pool and a multiplier value. Borrow Fee help mitigate attacks with a trader or competitor consuming both long and short capacity at low net cost.

Multiplier Value

Approved Range: Funding and Borrow Fee have multiplier values that need to be configured such that they don’t overly reduce the effect of positive funding fees but are a sufficient incentive to minimize OI imbalance. Over time Funding fees may start to approximate levels for existing centralized exchanges.

GMX V2 contracts combine a proposed lower swap fee with the implementation of price impact (both positive and negative) along with oracles that aggregate best bid and best ask pricing from the reference exchanges. This setup is aimed to ensure deep liquidity is secured with liquidity providers having a less volatile exposure, as net OI will be more effectively balanced through economic incentives when a large directional exposure occurs. More details on the price impact calculation: https://github.com/gmx-io/gmx-synthetics#price-impact

In GMX V2, swaps are now a two-step process similar to increase/decrease position transactions. This setup greatly reduces toxic flow (as was seen when GMX moved to two-step transactions) and should allow lower fees, which combined with price impact, will create efficient markets without running into front-running issues. This would make it convenient for traders to swap in and out of different collateral when increasing or decreasing positions. The lowered swap fee may also help make the protocol a preferred platform for swaps once aggregators can integrate this novel approach (discussions are already ongoing).

start

April 19, 2023

1:14 PM

end

April 25, 2023

12:00 AM

Voting

off-chain

Voting type

approval

Voters

16,079

Votes

1,759,062

Final Votes

closed

Confirm Front End Integration

895.6K sbfGMX

50.91%

Decline Front End Integration

1.1K sbfGMX

0.06%

Confirm Market Parameters

862.2K sbfGMX

49.02%

Decline Market Paramaters

182.4 sbfGMX

0.01%

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