TL;DR
- GMX completed the distribution of $44 million in compensation to Arbitrum liquidity providers affected by the V1 exploit.
- Users who hold their GLV for at least three months will receive a share of $500,000 in retention incentives.
- The GLV vaults allow providing liquidity in BTC, ETH, or AVAX, automatically rebalancing toward the most profitable pools, with no lock-up periods.
GMX finalized the compensation distribution for Arbitrum liquidity providers impacted by the V1 exploit, ensuring every user receives their allocated funds.
Beneficiaries can now claim their tokens through the GMX dApp, where they will also find detailed information about the process and FAQs regarding the incident. The total allocation reaches around $44 million, including $2 million additional from the GMX Treasury, and is issued in GLV tokens, the upgraded version of the former GLP designed to optimize liquidity performance in V2.
Users who hold their GLV for at least three months will receive a portion of $500,000 in retention incentives. GLV tokens allow immediate redemption of the underlying assets or automatic yield from trading fees generated on the platform. This tool features auto-compounding, with a historical average annualized return between 20% and 30%, providing users with steady growth without active management.
Each user receives two GLV tokens in equal proportions: GLV [BTC-USDC] and GLV [WETH-USDC]. These tokens replicate approximately 25% WBTC, 25% ETH, and 50% stablecoins, maintaining the original exposure of the previous GLP. GMX is also developing custom solutions for DeFi protocols that integrated GLP, while preparing GLP redemptions on Arbitrum, expected in about ten days, allowing users to sell any remaining GLP.
GMX Shows How to Recover Properly After an Incident
The GLV vaults rely on GMX V2’s isolated GM pools, offering liquidity options in a single market or through an automatic optimization scheme that rebalances assets toward the best-performing pools. Currently available vaults include GLV [WETH-USDC], GLV [BTC-USDC], and GLV [WAVAX-USDC] on Avalanche. Providing liquidity requires no lock-up and can be managed flexibly according to user needs.
To track performance, GMX provides detailed dashboards where liquidity providers can compare GLV performance with standard Uniswap V2 positions, evaluate long-term trends, and analyze isolated GM pool results.
Meanwhile, GMX V2 continues daily operations, reaching weekly volumes in the billions, demonstrating resilience and continuity despite the incident. The team and community highlight the collaboration that resolved the situation and reinforced trust in the platform, showing that effective incident management can lead to stability and sustained growth
