Summary
In October 2024, we proposed adding GM: BTC/USDC [WBTC-USDC] as a collateral asset to the money market Venus Protocol on its Arbitrum network deployment. Following community feedback, a vote was initiated on Snapshot, which successfully passed with a 100% quorum. The asset was subsequently added to Venus Protocol on Arbitrum.
Now, GMX Contributors propose adding the single-sided GLV: WBTC/USD liquidity asset to Venus Protocol on the BNB Network. This addition would enable this popular GLV liquidity token for the GLV WBTC/USDC market, which has nearly $16 million in liquidity, to be used as collateral on Venus. This addition would allow liquidity providers on GMX to borrow against it, thereby enhancing Venus offerings, increasing its TVL, and solidifying its position as a prominent lending and borrowing protocol on BNB Chain.
Benefits of Adding GLV: WBTC/USDC to Venus Protocol
- Increased demand for borrowable assets on Venus Protocol due to GLV: WBTC/USDC popularity and low-volatility nature.
- GLV: WBTC/USDC low beta properties make it an ideal asset to borrow against.
- Integration with Chainlink Data Streams in GMX V2 reduces the risks of front-running and price manipulation.
- $10.76 million of GLV: WBTC/USDC has already been minted. This demonstrates the asset’s popularity.
- The APR of this GLV: WBTC/USDC pool stands at 5.98% (as of the time of writing); a very respectable yield
- More than 2,287 Liquidity Providers are holding the GLV: WBTC/USDC token: a healthy, decentralised distribution
- GMX V2 and its GLV tokens are highly composable, and were designed with that functionality in mind.
The GLV: WBTC/USDC token is already being integrated into various DeFi protocols and used as collateral in multiple money markets: Morpho, Dolomite, Radiant, Vaultka, and Deltaprime come to mind. This is evidence of significant community demand for the asset.
When comparing GLV: WBTC/USDC to a traditional Uniswap V2-style 50/50 rebalancing pool composed of equivalent long and short tokens, the GLV: WBTC/USDC pool outperforms by 7.89% over the last 6 months.
This highlights the advantages of GMX’s GLV: WBTC/USDC pool for liquidity providers, and its potential value as a collateral asset in money markets like Venus.
Motivation
GMX is a leading,battle-tested decentralised finance application, allowing users to buy spot crypto and trade perpetuals on 70+ top crypto assets. The introduction of several new features in GMX V2, including the integration with Chainlink Data Streams, has significantly reduced the risks of front-running and price manipulation and further bolstered protocol security. .
GLV: WBTC/USDC is a single sided Liquidity Token on the GMX V2 platform and earns fees from leveraged trading, borrowing fees, and swaps. More than $16 million in liquidity has been committed to GLV: (WBTC/USDC) by DeFi users, underlining the asset’s significant popularity.
Integrating single-sided GLV: WBTC/USDC as a collateral asset in Venus on BNB has the potential to create new demand for borrowable assets on Venus. GLV: WBTC/USDC has a proven track record of being a low-volatility asset whose value does not fluctuate heavily compared to the broader market. The low beta properties of GLV: WBTC/USDC make it an ideal asset to borrow against.
Background: GMX V2
GMX V2 was launched following discussions on the GMX forums in mid-2022. The limitations of GLP (the GMX V1 Liquidity Pool Token), designed for specific assets and sizes, restricted its potential scalability.
V2 builds on the successes and challenges of the GMX V1 model, aiming to enhance the experience for both traders and liquidity providers. V1 demonstrated a community demand for ownership of liquidity, creating a solid foundation for an on-chain perpetual market without relying on professional market makers. GMX simultaneously pioneered the use of Oracles for effective price discovery, providing liquidity providers with more equitable returns, and minimizing value extraction.
GMX’s performance over the years highlights traders’ need for control over assets, transparent pricing, guaranteed protocol solvency (100% backed and verifiable on-chain), and isolated risk.
GMX V2 builds upon these rock-solid foundations. It utilizes new sub-second data Oracles developed together with Chainlink, enabling real-time price updates and faster on-chain execution, thereby improving performance and reducing frontrunning risks. Liquidity pools in V2 are isolated to each market, enhancing flexibility for providers and allowing the emergence of new markets as trader interest grows. In addition to lower trading fees, GMX V2 features robust market parameters that promote balanced open interest, including variable fees and opportunities to earn funding fees. This results in more liquid markets, making GMX a preferred venue for trading, hedging, and earning.
Ticker: GLV: (WBTC/USDC)
Contract Address: 0x3c21894169D669C5f0767c1289E71Ec8d6132C0F
Chainlink Oracle: 0xc6984fF1047Ddd0AB52D2dFa78381CC677921A85
Reference
Project: GMX | Decentralized Perpetual Exchange
GitHub: gmx-io · GitHub
Docs: GMX | GMX Docs
Audit: gmx-synthetics/audits
Twitter: https://twitter.com/GMX_IO
Telegram: @GMX_IO
Discord: GMX
Next Steps
We invite the community to consider this application for listing the GLV (WBTC/USDC) market, and welcome suggestions in this direction and any related feedback.
Disclaimer
This proposal is provided for informational purposes only and does not constitute any form of legal commitment or agreement between GMX, Venus Protocol, or any other parties. The listing and parameters for such allocation are subject to the approval and discretion of Venus Protocol. GMX or any other parties make no warranties or representations regarding the accuracy, completeness, or suitability of the information presented, and will not be liable for any losses, damages, or adverse consequences that may arise in relation to this proposal. All parties are advised to conduct their own due diligence and seek independent legal advice before making any decisions or commitments based on this proposal.
GMX DAO is supported by Labs as voted on in Snapshot
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