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title: [ARFC] Add GMX to Arbitrum Aave v3 discussions: shortDescription: Add GMX to Aave v3 on Arbitrum Network. author: @0xlide, @Llamaxyz created: 2023-06-20

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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 Chaos Labs.

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 @lide and @llamaxyz, do not possess any GMX. @lide 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.