Background
Based on the previous “Adjust Aggregator Referral Rebates Distribution” proposal, 100% of referral rebates from integrated protocols are distributed to veMUX holders.
MUX is developing an upgraded leverage-boosting setup for the aggregator to improve trading experiences and onboard more traders. The setup can boost the max leverage of GMX V1 & V2 positions to 100x. This new setup will require an isolated pool with $500K funds reserved for the feature; the funds will be used to supply additional margin to traders GMX V1 & V2 positions to achieve leverage boosting and liquidation price optimization. The isolated pool will fully bear related risks since additional collateral provided to traders’ GMX V1 & V2 positions can face liquidation risks.
Since MUXLP won’t earn the aggregator referral rebates from integrated protocols, plus the leverage-boosting feature currently doesn’t charge fees, it will be more reasonable to use POL to supply the $500K for the isolated pool and bear the risks.
Proposal
Based on the context, MUX contributors propose to use $500K from POL to fund the isolated pool for the leverage-boosting feature. The reserved $500K in the isolated pool will still be counted toward the MUXLP TVL. If fees are turned on for the leverage boosting feature, the fees will go to the isolated pool. The isolated pool from POL will fully bear the liquidation risks involved with the leverage-boosting feature and won’t affect LPs.
Next Steps
- Community discussion surrounding this proposal
- Community members vote to approve/disapprove of this proposal