OurNetwork #120

May 06, 2022

About the editor: Spencer Noon is Co-founder & General Partner at Variant Fund.

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Network Coverage
Coverage on GMX, TreasureDAO, Vesta, and Tracer.

① GMX

Thanks to an innovative LP model, GMX leverages decentralized counterparty-risk clearing to provide zero-impact leveraged trades. With asset pricing integrity secured by decentralized price Oracles, users can experience an OTC-like trading experience - eliminating dependence on paired-LP tokens or a centralized orderbook means less slippage, and zero-price impact upon entry. While cumulative GMX users are tracking around 11.7k, the project intends to launch referral rewards soon and gain additional traction.

The GMX platform is propelled by a unique tokenomic mode: platform fees are split 30/70 between staked GMX/GLP, paid out in either wETH or wAVAX. This sustainable fee model has allowed GMX to grow and maintain an LP TVL of ~$338m to date.

GMX has handled ~$27.5b in organic trade volume to date. With their tokenomics and trader-first UX, the project continues to attract capital towards GLP, so that the platform's capacity to handle volume keeps pace with the growing demand for functional DEX products.

TreasureDAO is building a decentralized video game console that comprises an open metaverse of communities powered by $MAGIC, the shared currency, and Treasures as composable NFT resources. Treasure is developing an expansive ecosystem stack that spans products/brands (games/metaverse projects), a community and social layer (governance and guilds), and infrastructure (marketplace, AMM). Since its launch in the fall of 2021, the number of unique addresses holding $MAGIC has grown to surpass 32k.

The $MAGIC-denominated Treasure Marketplace is the largest NFT marketplace on Arbitrum and has seen significant trading volume since its launch for a total of $268m.

The Atlas Mine is the main incentive program of Bridgeworld, TreasureDAO’s flagship product. By time locking $MAGIC, it provides stakers access to emissions. Today, over 75% of $MAGIC’s circulating supply (equivalent to $179m) is locked in the Atlas Mine.

Vesta unlocks value from assets that are not offered on other lending platforms and with a highly capital efficient structure. The project is “Layer 2-first,” meaning it was deployed initially on Arbitrum. The stablecoin of the protocol - Vesta Stable (VST) - has $10m in liquidity depth and consistently stayed on peg, reaching $400k in daily volume.

Since redemption was enabled on the front-end of the app, the stablecoin peg has stayed performed consistently with less than 0.35% deviation on the curve pool.

Collateral in the system has been on a slight downtrend. However, the project recently launched DPX and GMX as collateral (not shown below), and plans on adding Yearn interest-bearing assets in the near future.