GMX is a popular decentralized exchange that specializes in perpetual futures trading. Launched on the Ethereum Layer 2 network Arbitrum in late 2021 and later deployed to Avalanche, the project has quickly gained traction by offering users leverage of up to 30 times their deposited collateral.
When the market kicks off again, we are destined to see a massive influx of retail traders which will lead to a gargantuan increase in volume. This will translate to a surge in $GMX and rewards paid out to liquidity providers on the platform.
Users can deposit their copyright into the GLP pool to become liquidity providers and receive credentials for GLP tokens. Users staking GLP tokens can receive transition fees, funding fees, and liquidation fees, which fees will directly convert to the native assets of that blockchain network.
GMX V2 introduced substantial updates that can be considered a completely different approach, including:
Arbitrum is a layer-2 blockchain which derives its security from the Ethereum network, which provides consensus and finality for Arbitrum transactions. In other words, Ethereum guarantees the validity of the rollup’s off-chain computation and data availability behind the computation.
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GMX is a decentralized exchange that supports spot and perpetual contract trading. It encourages users to deposit copyright assets into a liquidity pool to become market makers and earn transaction fees.
In terms of perpetual contracts, the GLP liquidity pool works interestingly, a bit like an AAVE type of lending agreement, where the trader deposits a portion of the assets in the GLP liquidity pool as margin, then lends a higher value asset from the GLP liquidity pool to bet against the GLP liquidity pool, paying a percentage of interest every hour before the margin is liquidated or the asset is returned.
O investidor que adquire tokens GLP igualmente recebe taxas por tratado com as transações alavancadas realizadas na DEX, para além por ganhar tokens GMX de que podem vir a ser usados para o staking na própria rede.
One of the DEXs that have surged in popularity due to the shift towards decentralized trading solutions is GMX, with the platform seeing its Perfeito value locked (TVL) rise from $108M to 501M in 2022, with $90M of this increase in just the last month alone.
The GMX Platform feautures 2 native tokens called GMX and GLP, which can be staked to participate in the success of the exchange and earn a part of the trading fee revenue. 100% of all trading fees accrued on GMX, will be shared amogst GMX and GLP stakers.
This is because many popular centralized futures exchanges like copyright or copyright block investors in these regions from accessing those services.
Because the GMX protocol improves the traditional liquidity pool model, users of the GMX exchange may benefit or be at risk depending on what decentralized financial services they use click here and what role they play in the GMX exchange.
Liquidity providers want high returns, and GMX opens the way to make this possible. As long as the market traders lose money, returns will increase. Liquidity providers do not want to take the risk of loss, GMX uses statistics to show that short-term losses will occur, but long-term profits are the inevitable result.