GMX

In order to further solidify the collaboration between GMX and Plutus while enabling the Plutus GLP vault to receive maximal yield, we propose a $200k token swap between the teams’ treasuries.

Specifically, we are proposing to swap $200k worth of esGMX tokens for $200k worth of locked PLS tokens. The amount of tokens received will be based on a 30-day trailing average of both tokens’ prices at the time that the governance proposal passes. Pricing will be used using the daily rate from coingecko.

Plutus and GMX will stake their respective initial positions for a period of not less than [2] years but may utilize their yield including in native tokens (esGMX / PLS) as required by their protocol.

The esGMX tokens that Plutus receives will therefore never enter circulation and their yield will be used solely to incentivize the products that Plutus builds on top of GLP and potentially GMX. Similarly, the PLS tokens can be staked by the GMX team to earn yield and later down the line bribes as well, providing a future source of yield and diversification for the GMX treasury. The size of the swap was determined to be small enough to not significantly affect the treasuries of either protocol or introduce unnecessary risk, while still bringing significant benefits to the users of Plutus’ GLP vault product.

Effectively the main objective of the treasury swap is to benefit the end users of the product, which are current GLP stakers. While Plutus’ GLP product can thrive without a treasury swap, it would significantly increase yield for plvGLP stakers due to the emissions from the permanently locked and compounded esGMX while signaling the beginning of a mutually beneficial relationship between GMX and Plutus.

Action:

Complete an OTC treasury swap between the GMX and Plutus treasuries for $200k worth of locked esGMX for $200k worth of locked PLS tokens.