GMX

Proposal for Action Complete an OTC treasury swap between GMX and Redacted treasuries of $200,000 worth of locked GMX and locked rlBTRFLY. The GMX from the trade will be permanently deposited into Pirex as pxGMX and will be used to bootstrap the pxGMX/ETH LP.

Forum Discussion Please see the posted proposal and clarifications at https://gov.gmx.io/t/gmx-redacted-partnership/1147 and you can read and participate in formulating GMX’s Ecosystem Partnership strategy which these swaps are guided by at gov.gmx.io/t/partnerships/743

These swaps are intended to support protocols building on GMX through sustainable yield generated from GMX/esGMX and not the selling of the principal from the swap.

Key Considerations

• GMX and esGMX deposits into pxGMX are a one-way process, GMX and esGMX will never be unstaked, and esGMX will never be vested. Multiplier points accrue and ETH rewards from multiplier points are shared pro-rata by pxGMX holders. pxGMX and pxGLP are intended to allow for greater composability for GMX and GLP in DeFi.
• Redacted is completing an audit of their pxGMX and pxGLP strategy which is ready to deploy. Swap transfers will be completed after the completion of the audit ⁃ If approved the swap will be executed using the 30-day trailing average daily closing price of GMX and BTRFLY on Coingecko at the time this proposal passes.
• Redacted and GMX intend to hold the tokens received from the swaps indefinitely, with them deployed in accordance with this proposal. After two (2) years, if there has been a material change in the tokenomics or intended utility of the tokens that result in the protocols being unable to use them as had been planned, the protocols may mutually review and come to governance to seek equitable adjustments.
• As part of the GMX and Redacted partnership and the treasury swap, two GMX core contributors and two Redacted core contributors will be on the three of four pxGMX multi-sig. This will, among other things, help ensure that the GMX from the treasury swap is not sold prematurely