Administration of Protocol Owned Liquidity

**Summary ** The GMX DAO currently holds outstanding pool fees amounting to 994.70 ETH (3.2m USD) and 69,132.83 GMX (1.6m USD) from its GMX/ETH Uniswap LP position. This proposal seeks to authorize GMX DAO to collect these outstanding position fees from Uniswap and redeploy them in a manner that strengthens token liquidity on CEXs and GMX, along with improving protocol liquidity for the wide selection of assets that GLV now supports.

DAO Custody of POL

1. Move twenty-one protocol-owned liquidity NFTs into a DAO Timelock Contract to consolidate fee collection, minimizing custody and security risks.

Simultaneously, a solution will be explored and implemented to bring protocol-controlled liquidity under the DAO’s governance, ensuring long-term sustainability and direct alignment with DAO objectives.

This strategy aims to optimize the utilization of these funds to drive sustainable growth, liquidity, and token utility within the GMX ecosystem.

Motivation

1. Maximize Value from Outstanding Fees: The outstanding fees from Uniswap represent untapped value that can be leveraged for ecosystem growth.
2. Strengthen Liquidity and Market Dynamics: Reallocating a portion to market-making on CEXs and GMX ensures tighter spreads, better price discovery, and a seamless trading experience, with wider availability of the GMX token.
3. Enhance Incentives for Participants: Depositing into GLV Vaults boosts trading UX, engagement, and adoption.
4. Reinforce Ecosystem Sustainability: Strategic fund allocation supports GMX’s long-term goals of scalability, security, and community growth.

Specification

1. Fee Collection Process: . Initiate a request to Uniswap to collect the outstanding position fees. . Ensure transparency by providing well-documented reporting. . Transfer the twenty-one protocol-owned liquidity NFTs from the following addresses into a DAO Timelock Contract: 0xdddc546e07f1374a07b270b7d863371e575ea96a 0x4E29d2ee6973E5Bd093df40ef9d0B28BD56C9e4E 0x50F22389C10FcC3bA9B1AB9BCDafE40448a357FB

2. Allocation Strategy:

. Amounts above are approximate and approval is sought, based on actual fees claimed, to adjust these by ± 10% to ensure full redeployment of funds.

Governance Oversight:

. Establish a multi-signature wallet for the funds, managed by the DAO. . Publish a report on fund utilization and its impact on liquidity, trading volume, and user engagement.

4. Implementation Timeline: . Finalize fee collection process with Uniswap. . Transfer NFT’s to the DAO Timelock Contract. . Allocate funds as per the strategy and initiate MM and GLV vault and GM Pools deposits. . Monitor, report, and refine the strategy based on performance metrics.

Conclusion This proposal improves liquidity and allows the DAO to redeploy a portion of the POL (collected fees) into enhancing liquidity for GMX and the protocol.

We urge the DAO to approve this proposal, enabling the community to unlock and utilize these valuable resources effectively.

Voting Options:

Approve: Collect fees and implement the outlined allocation strategy. Against: Do not proceed with the proposal. Abstain: Take no stance.