GM Labs Proposes GMX Treasury Deposit Through Falcon Finance

GM Labs proposed Thursday that GMX place protocol-owned GMX tokens with Falcon Finance for treasury management, with any transfer from an Arbitrum multisig contingent on final terms and operational preparations.

The proposal, dated Oct. 29, does not state how many tokens would move or their dollar value. It also gives no transfer date, duration or expected return. The tokens would come from the GMX POL Multisig on Arbitrum.

Falcon Finance’s USDf is an overcollateralized synthetic dollar minted against eligible deposited assets. The GMX proposal does not say whether the tokens would be used as collateral for USDf or deployed through another part of Falcon Finance. It also leaves the strategy and risk controls unspecified.

The proposal describes a planned deposit, not a completed transfer, and does not confirm a bilateral partnership. The transfer is contingent on confirming terms and completing preparations, but no deadline is given for those steps.

A separate GM Labs proposal dated Sept. 16 outlined a $10 million first-phase market-making fund sourced from the treasury. It would compare GMX’s circulating market capitalization with combined open interest. If market capitalization were below combined open interest, the fund would focus on buybacks; at or above that level, it would focus on liquidity provision.

The two proposals do not say whether the September fund has been implemented or whether it is connected to the Falcon Finance plan. The next stated steps for the proposed deposit are confirming its terms and completing preparations.