GMX DAO Vote Would Move About $7 Million in Tokens Into Emergency Reserve

GMX DAO token holders are considering moving a treasury basket worth about $7 million into a multisig reserve, giving the trading platform a way to respond to severe liquidity stress without another vote.

The proposed basket includes WETH, WBTC, Wrapped SOL, LINK, USDC, GMX, ARB, AAVE, UNI and PEPE. The assets would move in their original forms to the GMX POL multisig on Arbitrum One. Their market value will fluctuate with prices, so the basket is not a fixed $7 million amount.

The transfer would keep the assets within GMX’s existing $10 million market-making fund and would not mean they are being deployed immediately. The reserve would be used only if a severe market downturn hurt GMX’s liquidity. The multisig requires four of seven signers and could deploy funds in that situation without another DAO vote.

GMX is a decentralized cryptocurrency trading platform with leveraged options. The fund’s first phase supplied three million USDC. GM Labs assessed that the deployed funds are improving GMX’s liquidity and market activity. The vote opened Friday, Nov. 6, and is scheduled to close Wednesday, Nov. 11.