GMX (GMX) is a revolutionary copyright that aims to redefine the digital asset landscape with its unique features and innovative technology. Designed to offer a seamless and efficient transaction experience, GMX is built on a robust blockchain infrastructure that ensures security, privacy, and scalability.
On the surface, the GMX protocol fulfills the wishes of almost all liquidity providers: long-term, stable, low-risk, high-yielding gold flows. But the truth is less rosy than it seems because GLP liquidity pools are more than just deposits and lending like banks. Their excess returns well above the general market interest come from traders’ forfeited margin, and the increased risk taken is traders’ profit.
dYdX holds the distinction of being the first decentralized exchange to offer perpetual contracts. The latest version, V4, introduces a dedicated appchain built on the Cosmos SDK.
$GMX is the protocol’s utility and governance token. $GMX has a forecasted maximum supply of 13.25 million tokens, which can be increased if there are more products launching and liquidity mining is required. But that will be subjected to a governance vote before any changes.
The most apparent drawback for traders is the small selection of assets in the GLP liquidity pool, as they can only trade with a few cryptocurrencies. There is a potential additional risk of sudden spikes in funding rates, which dynamically adjust to asset utilization in the GLP liquidity pool. For example, suppose you choose to go long on LINK tokens in the contract market of the GMX platform, and soon after, you open a position.
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Completa staking value has topped $400 million and cumulative trading volume has surpassed $55 billion in the year since the GMX protocol was developed, making it the third-largest decentralized exchange on Arbitrum after Uniswap and Curve.
GMX is a decentralized exchange built on Avalanche and Arbitrum. It lets DeFi users trade with up to 30x leverage in a permissionless manner. GMX offers a smooth user experience that's perfectly suited to retail DeFi traders. Share this article
GMX aims to stand out by eliminating impermanent loss for liquidity providers and leveraging an AMM system that integrates leverage and futures trading directly into the liquidity pool, fostering a self-sustaining trading ecosystem.
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The fallout and subsequent fear of insolvency in other centralized exchanges (CEXs) resulted in copyright users flocking in masses to decentralized exchanges (DEXs) for increased transparency and control over their funds.
The perpetual futures market space is colossal. Just think of how many degens there are out there, even in a bear market, trying to leverage their way to riches.
Image Credit: CoinGecko As the bear market continues, investors will be looking for protocols with real users and sustainable revenues. In my humble opinion, GMX fits the bill and will be the front-runner when the market is headed back up again.
Many decentralized exchange aggregation protocols also favor the zero transaction spread of the GMX protocol. Yield YAK, a revenue aggregation protocol on the Avalanche blockchain network, has more than 35% of its trading volume done through the GLP liquidity pool.