Add support for gmBTC as collateral on Venus

Summary GMX Contributors would like to propose the addition of gmBTC – the deep BTC/USDC liquidity pool token of GMX V2 – to Venus Protocol due to its popularity and significant benefits for Venus users.

Background: GMX V2

GMX V2 was set in motion with discussion on the GMX forums starting in mid-2022 about the next iteration and direction of GMX. Over time, the constraints of a product like GLP (the GMX V1 Liquidity Pool Token), designed for a particular set of assets and size, limited its ability to fully leverage its potential at scale.

V2 is a more ambitious concept; learning from what worked with the V1 model and what did not work. GMX contributors set out to make a new product built from the ground up to enhance the experience of both traders and liquidity providers.

GLP proved that there was a desire for community owned liquidity that would provide the foundation of a deep perp market on-chain. This meant there wasn’t a need to rely on professional market makers who, on CEXs and even in DeFi, would do so mainly on the basis of preferential deals and extract value from the ecosystem. GMX helped pioneer the idea that Oracles could effectively support price discovery of assets, and be utilised to provide liquidity providers with a more equitable return on capital by not bleeding excess value to MEV.

GMX’s results over the last two years show a fundamental demand from traders to have sovereignty over their assets, control of their positions, transparent pricing, assured protocol solvency (always 100% backed, verifiable on-chain), and isolated risk (as traders only have the funds of a specific position exposed to the GMX protocol, while they continue to have the flexibility to interact with the rest of the vibrant DeFi ecosystem on Arbitrum.)

Arbitrum is an environment built to support the best of Ethereum DeFi. One protocol after another integrated with GMX, showing a strong need for yield-generating assets, capital-efficient trading, hedging on-chain, and supporting a wide range of strategies.

V2 is powered by new low-latency Oracles that were designed over the last year working with Chainlink, and launched first on Arbitrum powering GMX V2. They provide a whole range of additional data streams and exceptionally low-latency trading, giving GMX real-time price updates and faster on-chain execution. The result is stronger and more efficient protocol performance and data security, plus help with mitigating frontrunning risks.

Additional details and data in the forum proposal.