# Our First FLAVOR

## Motivation
The initial FLAVOR we want to launch will be for GMX staking rewards. GMX has a unique rewards policy. When you stake your funds, the longer they are staked, the more multiplier points you receive. So, if a person starts at 10% APR, after a month they may have 15% APR since they have accrued additional "Multiplier Points" (**MPs**). If a person unstakes even ${1\over10^{18}}$ of a GMX token from their staked position, they lose all of their **MPs**.

To this end, the longer a farm is in production, the higher the multiplier rewards will be for that farm. A person can receive a token representing their staked position, such as empGMX, and this can be traded with other people to represent the value their staked position contains. One issue with this is people are not able to withdraw their funds from the farm. A person in the farm will need to keep their funds in the farm until the farm is retired, or they find someone to buy their position.

There is also a concept of esGMX, which are tokens that can be used to yield rewards but have no cash value. They can be redeemed for GMX tokens if they are staked, at which point they are linearly vested over one year.

## Vault Composition
So what can be done to create liquidity for this position? A FLAVOR can be created that is:

- 80% locked staked GMX (**empGMX**)
- 20% unlocked, staked GMX

The unlocked position will be able to generate yield, but tokens can be pulled at any time from this position. This will consistently reset the **MPs**. The 80% will be locked until there is a protocol vote to pull liquidity (see below).

The rewards from the locked, staked GMX will be reinvested at a rate of 90% into the locked vault, and 10% into the unlocked vault. Meanwhile, the rewards from the unlocked GMX position will be reinvested in the unlocked position consistently. WETH rewards will buy GMX and restake into the vaults at the 80/20 ratio.

The esGMX will be allocated at a rate of 80% staked and 20% vested for redemption (these values are subject to change, and can be changed at any time via the strategy). As the GMX is vested it will be reinvested in the vault.

## Entering the Vault
The constant creation of additional liquidity in the GMX vault creates a benefit for users. There is consistent liquidity being created for users that want to exit their staked GMX position.

Depending on the current price of the vault, there will be two options. If a person wants to enter the position, they will be able to buy a position until it reaches a fair market price, or they can stake into the vault. There will be more value in holding empGMX than staking normal GMX, as it will benefit from the accrued MPs to generate a higher APR.

## Exiting The Vault
Vault members will receive shares tokens to represent their stake in the vault. If at a point in time a dominant majority (tentatively 80% or more) of people want to pull their empGMX and redeem for GMX, the vault can be retired and the underlying balance can be redeemed for their share of the underlying GMX (1 empGMX will be more valuable than 1 GMX at this point in time, and will consistently become more valuable as the reward rate increases).

Therefore, more than one of these vaults can be deployed over time so people can close one of these vaults and migrate their funds to a newer version.

Simultaneously, the esGMX rewards will be staked, to be converted into GMX and distributed to all token holders. As the esGMX is unlocked, they are staked for additional rewards while the vault is winding down.