GM
All about GM, its integration with Dolomite, and what makes it special for GM holders.
Overview
GM (GMX Market) pools are the GMX platform's V2 liquidity tokens, collectively earning 63% of all fees generated from leverage trading, borrowing fees and swaps done on GMX V2. Each pool represents a long and short token pair (i.e. [LONG-SHORT]), along with an associated token price to represent the pair. Compared to GLP, the GM pools isolate markets, risk, lowered slippage, has no risk of Impermanent Loss, and allows a wider range of assets to be listed.
The GM pools are designed to have a 50/50 split of the long and short tokens within the pool to back associated Long and Short Positions within the V2 GMX platform. As such, the buying and selling of a GM token are done with the either or both of the long and short tokens.
Dynamics of GM Pools
The price of the GM tokens are a factor of price of the long/short tokens and the pending profit-and-loss of existing traders’ open positions.
Fees from leverage trading and swaps automatically increase the price of GM tokens.
Incentivizes rebalancing a GM pool to maintain a 50/50 split.
The price impact will change depending on the current balance of the pool. For example, if the pool has more "long" tokens than "short" tokens, then buying the GM token for that pool with the short token would provide a positive Price Impact. The same is true if you were to buy the GM token with short or long tokens that make up >50% of the pool, a higher negative price impact the greater the imbalance.
This dynamic means that if there is a spread between the available long and short tokens within a GM pool, it results in a spread for selling and buying the GM tokens as well.
Available GM pools
| Market [LONG/SHORT] | Contract Address |
|---|---|
BTC/USDC (gmBTC) | |
ETH/USDC (gmETH) | |
ARB/USDC (gmARB) | |
LINK/USDC (gmLINK) |
The prior information was taken from GMX's Gitbook. If you notice any of the information is out of date or incorrect, please let us know.
Integration With Dolomite
Dolomite's integration with the GMX ecosystem exemplifies Dolomite's modularity and positioning as a public utility for other protocols to utilize. First and foremost, Dolomite's protocol does not take any fees from anything earned in the GMX ecosystem, instead passing all rewards on to the user.
Currently "Intent Assets," in this case GM assets, have Zap limitations.
Zapsbetween a Borrow Position and a user's Dolomite Balance, while the GM asset is the input, is currently not possible.
This means the following Zap options are currently not possible with a gm asset as input:
However, this means that Zap - Trade into Different Collateral, Zap Swap Panel, Zap - Use Collateral To Repay, and the above Zaps with the gm asset as output can still be done.
Depositing GM to Dolomite
Once you have GM in your wallet, you may deposit it into Dolomite via the Balances page. To deposit it, select GM from the asset dropdown with the Deposit tab selected (shown below).
Note, if it is your first time depositing, you will have to unlock GM asset first. After successful transactions, the GM asset will appear in your Dolomite Balance (i.e. below the deposit/withdraw panel).
Asset Rewards
With the GM pool structure, the asset rewards, or APR/APY, will be added directly to the price of the asset. Unlike GLP, there is no need to claim any asset rewards manually.
Risk
GM tokens are not borrowable assets and is permanently in Isolation Mode. You can learn more about the other risk parameters by visiting the Risk Mitigation page.
Price Oracle
The GM oracle implementation can be seen on this page.
Liquidations
Getting liquidated for any GM tokens you have in a borrow position will result in the GM tokens you hold in the position being seized by the liquidator and sold off using the normal collateral calculations, as explained in Liquidations.
Dolomite never takes your rewards when a complex collateral asset is liquidated. Only the collateral asset is ever taken
Fees
Dolomite does not take any additional fees for using GM tokens, however there are several circumstances that require a fee due to the technical integration with GMX.
Opening a new borrow position using GM tokens as collateral requires a deposit of 0.001 ETH to be paid from your wallet (not your Dolomite Balance). This is used to ensure a liquidation can be processed properly utilizing GMX relayers. The 0.001 ETH is returned to you when the borrow position is closed without liquidation.
Zapping GM assets (either to a GM asset or from a GM asset) requires an additional small ETH fee to be paid from your wallet (not your Dolomite Balance). This fee is used to pay the GMX relayer to finalize the transaction utilizing the GM asset. Zaps using GM assets also have a minimum size of $1 to ensure the trades can be executed.
Audits
All of the code specific to Dolomite's GM vaults and the interactions with GMX's ecosystem is currently being audited by Guardian Audits.
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