TL;DR:
The HMX Team, experts in smart contract development and DeFi, have submitted a grant proposal for their project, a perpetual protocol with cross-margin and multi-asset collateral support on Arbitrum. The proposal, which aims to attract new users through trader incentives, has received mixed reactions from the community, with some praising HMX's high volumes and others criticising the grant's size and the team's aggressive incentives.
What is this about?
The discussion revolves around a grant proposal submitted by the HMX Team, a group with expertise in smart contract development, DeFi, banking, and corporate sectors. The team is developing HMX, a perpetual protocol with cross-margin and multi-asset collateral support on Arbitrum, offering low-fee trading on crypto, FX, and commodities markets with up to 1,000x leverage. The grant proposal aims to attract new users to their platform by using the grant for trader incentives. The team has requested a grant size of 750,000 ARB, reduced from the original 1.95M ARB, with the actual distribution amount based on the trading volume and new user growth achieved versus the baseline1. The proposal has now moved from [DRAFT] to [FINAL] for voting 14,16,18.
How is the community reacting?
The community's reaction to the proposal is mixed. Some members, like Apoorv9, support the proposal, citing HMX's high daily volumes and volume/TVL ratio2. However, others, like Meyaf320219 and MotusCM, criticize the proposal, suggesting a reduction in the requested size and attributing HMX's success to aggressive incentives3,6. There are also concerns about the majority of HMX's TVL being re-hypothecated GLP10. Despite these criticisms, Matt_StableLab confirms that HMX's application meets all requirements for a snapshot vote4.
Why this is positive?
The HMX project aims to drive higher trading volume, increase protocol revenue, staking APR% for HLP (their liquidity pool), and $HMX staking. It will also directly increase the transaction volume for the platform and the Arbitrum network1. The proposed system includes measures to discourage wash trading and plans for UX/UI improvements and new features. The protocol has passed three audits and is prepared to provide regular updates, which shows transparency and commitment to the community1. The HMX team has shown responsiveness to community feedback by adjusting their proposal based on the concerns raised16.
Why this is negative?
Critics argue that the requested size of the grant should be reduced and that HMX's success is due to aggressive incentives rather than the inherent value of the protocol3,6. There are concerns about the HMX team's integrity and the sustainability of their platform13. Some community members also worry that the proposal's reward distribution mechanism could discourage new users and that the current HMX native incentives exceed the platform’s generated fees 15,21.
Posted 2 months ago
Last reply 2 months ago
Summary updated a month ago
Last updated 08/12 04:40