Remove GMX Performance Fee

Summary

In this proposal, we propose to reduce the performance fee on GMX vault’s ETH reward from 20% to 0%. Please note that this reduction only concerns GMX’s native governance token GMX, and only the ETH reward. esGMX can not be transferred as things stand, and it is thus currently impossible to redistribute them to our vault holders.

Background

As of November 29, there were a total of only ~120k VST minted from GMX. Despite collateral mobilization being an innovation specific to our protocol, the GMX vault isn't being utilized heavily. This brought us to assess the GMX vault more closely.

Motivation

In favour of removing the performance fee

• Reducing the fee taken by our service means a higher yield to users. This could potentially be more attractive to new users to open a vault.
• The Vesta treasury would still receive and accumulate the esGMX rewards.
• With the recent VRR implementation, deposit GMX on Vesta will become quite expensive. A potential strategy could rapidly be unprofitable for the investor. Removing the performance fee could mitigate that.

Against removing the performance fee

• Our Treasury would lose this revenue. ETH yield is roughly 5% on GMX, so it represents only 1% for all the GMX deposited on our platform.

Recommendation

Remove GMX performance fee.

Implementation

Upon passing of this proposal, the recommended course of action would be implemented immediately.