Redacted Files #11
Welcome everyone to a Special Edition of Redacted Files. Here, we cover GMX, a new Pirex partner, and go into what they have built, and how a partnership on Pirex comes together.
TLDR: it benefits both parties involved! Also in this edition, a special interview with our resident Wolf Slayer and main Dev extraordinaire, KP.
Staked GMX earns ETH rewards, esGMX (Escrowed GMX) rewards, and multiplier points in the GMX contract.
Once live, GMX can be deposited into Pirex for pxGMX.
pxGMX holders can claim ETH and pxGMX rewards (esGMX rewards are claimed and tokenized into more pxGMX)
Keeping in mind that GMX and esGMX to pxGMX is a one way process, this means GMX and esGMX will never be unstaked and esGMX will never be vested (it can still be sold as pxGMX).
Multiplier points will still accrue and the ETH rewards from multiplier points are shared pro-rata between all pxGMX holders.
As the conversion of GMX and esGMX to pxGMX will be one-way, this will create a black hole for GMX similar to what Convex has done for CRV, reducing GMX sell pressure.
Please note that liquidity will be provided to support the ability for pxGMX holders to sell their tokens, adding to the functionality of users GMX positions with Pirex
GLP
GLP is an index of assets used for swaps and leverage trading on GMX. It can be minted using any underlying index asset (e.g. USDC, ETH, WBTC, etc.) and burned to redeem the same underlying index assets. The price for minting and redemption of GLP is calculated based on (total worth of assets in the index including profits and losses of open positions) / (GLP supply).
GLP tokens are staked and earn ETH / AVAX rewards.
pxGLP
pxGLP works like GLP, where GMX-whitelisted assets (e.g. ETH or USDC) can be deposited into Pirex for pxGLP. Standard GLP holders would normally earn ETH rewards and esGMX, where pxGLP holders earn ETH and pxGMX rewards (esGMX rewards being tokenized as pxGMX)
With all deposited GLP, GMX, and esGMX being held in the same contract, and with all GMX and esGMX being permanently staked (again, no esGMX will ever be vested), this allows users to benefit from enhanced liquidity while also benefiting from shared multiplier points accrual of the joint deposits. The effects of this are that all the users in the pool benefit from the size and rewards of the total pool, allowing access to these benefits to smaller users.
Pirex also allows holders of pxGLP the functionality of a liquid version of GLP, and much like the way it is minted at GMX (by depositing whitelisted tokens into the contract for GLP), it is now also redeemable in the same fashion from Pirex. Users can go through the pool created for liquidity, and pay the fees to redeem white listed tokens, and since all the tokens in the pool will all be liquid ERC-20s, the value of each can be realized.
This is a powerful new way to use Pirex and gain the full optionality for one's GLP.
INTERVIEW WITH KP
To get some insight from the Team, I asked KP, master joke teller and head Dev at Redacted a few questions on his opinions of these new products and developments.
Thanks for taking the time to answer some questions KP. With GMX becoming the new partner to Pirex, let's start with your thoughts on Arbitrum and Avalanche?
KP: Similar to most people who have used or witnessed Ethereum during its periods of transactional congestion, I’m a fan of both as I can understand how both can be immensely beneficial to users (i.e. transaction fees and speed are both improved in enormous magnitude). It will be especially interesting to see what the next crypto bull will look like with both in place!
What do you want to see from pxGMX?
KP: We want users to get more value and utility out of pxGMX than they would from GMX (otherwise, there would be no reason for us to exist). As a result of users benefiting from our product, we will grow in terms of user base size and the resources we have for expanding our offering (which will result in even more value received by our users).
With the current temperature in the ecosystem, what makes you bullish these days?
KP: The continuous improvements made to the underlying technology, which are all critical in order for global, trustless finance to be feasibly adopted by the majority of the world and the people who need it the most. Arbitrum and Avalanche are perfect examples of that, as they enable anyone, anywhere to recover their financial sovereignty without being shackled to exorbitant fees – previously the case with various blockchains over the past decade.
You guys have a big following and community. What do you think is the reason for that?
KP: I can’t speak for GMX but, in my opinion, the reason why we (Redacted Cartel) have such a prominent presence in the crypto ecosystem is due to two primary reasons:
We build high-quality products that provide tangible and dramatic benefits to our users (e.g. Pirex-Convex enables CVX token holders to receive most/all the benefits of vlCVX without the 4-month lockup period, among other things); and
Our prolific and skilled marketing and business development team members (i.e. Sami, Kolten, Figgy, Chapo, Omnia, EthHunter and many others).
Who are a few good follows to keep up to date with what you guys are up to over there?
Twitter accounts of the Redacted Cartel members on the GMX Blueberry Podcast episode.
Redacted Cartel https://twitter.com/redactedcartel
Anything else you want to share? Alpha leaks or future ideations/products in the pipeline?
We’re only just getting started with Pirex and are building regardless of the market’s condition.
Thanks for all you do here at Redacted KP. I look forward to the next joke good ser.
Treasury Swap
To further align both ecosystems, a Treasury Swap has been proposed, where the Redacted Treasury would swap $200k worth of BTRFLY with $200k worth of GMX. The received GMX would be permanently deposited into Pirex for pxGMX and used to bootstrap the pxGMX/ETH LP. As all GMX received by Redacted would be deposited into Pirex for pxGMX, all esGMX yield from that pxGMX will be permanently staked and tokenized as further pxGMX. GMX’s BTRFLY will be locked for rlBTRFLY. Keep an eye out for the Snapshot vote in the near future.
And there we have it everyone. Pirex GMX. Take time and familiarize yourself with the new options that will be available soon™. Thanks for following along and joining us in this journey.
Important Links - 🐛♻🦋
Snapshot
Contributors: EthHunter, Molecul, Kolten
“Time Flies In BTRFLY”