title: [ARFC] Add GMX to Arbitrum Aave v3
discussions: [TEMP CHECK] Add GMX to Arbitrum v3
shortDescription: Add GMX to Aave v3 on Arbitrum Network.
author: @0xlide, @Llamaxyz
created: 2023-06-20
Summary
This publication presents the community an opportunity to add GMX to the Arbitrum Aave v3 Liquidity Pool.
Motivation
GMX Protocol is the largest DEX offering derivatives and one of the most popular DeFi’s today. GMX Token is also one of the highest traded assets on Arbiturm.
The GMX token is the utility, governance, and fee accrual token for the GMX protocol. The GMX value accrual mechanism is unique to the GMX protocol. GMX is a highly staked asset, with approximately 78% of circulating GMX staked earning an APR of 2.94%. This staking yield may generate borrowing demand for GMX, noting the yield is volatile.
Adding the GMX token to Arbitrum Aave v3 support greater asset diversification. Users will be able to deposit GMX as collateral and borrow GMX leading to additional revenue opportunities for Aave.
This publication contains risk paramters provided by Chaos Labs and Gauntlet. The initial forum discussion can be found here.
Specification
The parameters shown below are supported by @Gauntlet and @ChaosLabs .
Ticker: GMX
Contract Address: 0xfc5A1A6EB076a2C7aD06eD22C90d7E710E35ad0a
Chainlink Oracle GMX/USD 0xdb98056fecfff59d032ab628337a4887110df3db
| Parameter | Value |
|---|---|
| Isolation Mode | Yes |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap | 110,000 units |
| Borrow Cap | 60,000 units |
| Debt Ceiling | $2,500,000 |
| LTV | 45.00% |
| LT | 55.00% |
| Liquidation Bonus | 8.00% |
| Liquidation Protocol Fee | 10.00% |
| Variable Base | 0.00% |
| Variable Slope1 | 9.00% |
| Variable Slope2 | 300.00% |
| Uoptimal | 45.00% |
| Silo Borrowing | No |
| eMode | No |
| Reserve Factor | 20.00% |
| Stable Borrowing | Disabled |
| Stable Slope1 | 0.00% |
| Stable Slope2 | 0.00% |
| Base Stable Rate Offset | 0.00% |
| Stable Rate Excess Offset | 13.00% |
| Optimal Stable To Total Debt Ratio | 20.00% |
Disclaimer
Neither @0xlide and/or @Llamaxyz are affiliated with GMX or any other entity and has not received payment to present this ARFC.
At the time of writing, both @0xlide and @llamaxyz, do not possess any GMX. @0xlide holds only a small amount of GLP.
@llamaxyz has supported the drafting of this proposal and will prepare the payload for listing GMX on Arbitrum v3, pending successful Snapshot vote.
Copyright
Copyright and related rights waived via CC0.
