✔️[ABIP-11] [RFC] Whitelist GMX & GLP for productive assets

Summary

Extension to ABIP-06. The treasury team is proposing we add Vesta Finance, GMX and GLP tokens into the productive assets whitelist

Abstract

This proposal seeks to do two things:

  1. Add vesta finance as whitelisted protocol for Abachi DAO to manage its liquidity treasury.
  2. Allow allocation to GLP and GMX to earn yields paid in ETH.

To achieve this, the treasury team will open a position in Vesta Finance with its gOHM holdings. Currently these sit at 40gOHM. The position will be actively monitored and collateralized at or above 300%. In case we see a drop in gOHM we will add collateral to bring the collateralization to 300%.

With the loan taken from Vesta Finance, Abachi will allocate 80% to the GLP token and 20% to the GMX token and stake them both to earn a yield. Currently 40% on GLP and 30% on GMX, paid in ETH and GMX.

Both these platforms are on Arbitrum. A multi-sig will also be created on arbitrum to manage these.

tldr;

  1. Take 40 gOHM
  2. Put in vesta against 300% collateralised loan.
  3. Swap VST stablecoin for USD
  4. Allocate 80% to GLP and 20% to GMX
  5. Compound daily

Risks:
gOHM falls below collateral and our position on it gets liquidated.

Mitigation:
The position will be actively monitored.

Advantage & Hedge:
This also hedges our gOHM position in case there is a catastrophic platform / protocol failure at gOHM. While our initial position in vesta will be liquidated, the loan we took out will still be valid.

Motivation
We do not want to sell our gOHM and while it sits in the treasury, it can be utilised in a much better way.

The treasury team in light of the recent hacks, depegs and other issues wants to both hedge this position and also make it more productive. GMX and GLP allow us to do this.

About GLP:
This is an index token. Breakdown of the assets held in the underlying index can be viewed here:
Dashboard | Decentralized Perpetual Exchange | GMX

About GMX token:
This is the underlying exchange token for GMX which earns yields paid in ETH (via fees) and GMX token.

About GMX:
https://twitter.com/0x21l/status/1509905348022648835?s=20&t=_cbTxk1Ys0UCOpJAf-iIcw

  • Agree
  • Disagree

0 voters

Looking at the treasury’s plan that was shared earlier, and their commitment and the direction, I endorse the proposal - aye!!!

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