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.
In centralized exchanges (CEXs), these futures often come with more trading pairs and higher leverage, but they require users to trust the exchange's custody and operational integrity.
$GLP holders have exposure to all of these assets, as well as trading fees and some rewards in the form of $esGMX tokens.
The profit from the closed position is taken out of the GLP liquidity pool. The profit from closing the position will be removed from the GLP liquidity pool, while the loss will be deducted from the margin.
The GMX project encourages community engagement with the protocol, this includes facilitating the development of community-developed projects. Some examples of successful projects include:
These features primarily isolate risks among liquidity providers and incentivize arbitrageurs through varying fees to balance long and short positions. Trades that promote balance benefit from lower fees, favorable price impacts, pelo borrowing fees, and additional funding fee income.
GMX is a decentralized derivative copyright exchange that allows users to enjoy low fees and zero-slip transactions through an innovative GLP multi-asset liquidity pool and aggregated prophecy machine quotes. Users can stake GMX or GLP to gain the network's native tokens.
GMX is a decentralized exchange built on Avalanche and Arbitrum. It lets DeFi users trade with up to gmx.io copyright 30x leverage in a permissionless manner. GMX offers a smooth user experience that's perfectly suited to retail DeFi traders. Share this article
Users do not exchange assets and trade on GMX as they do on centralized exchanges, where many users submit limited buy and sell orders in the order book. Trading with GMX is done by depositing and withdrawing assets from a liquidity pool called GLP, which is the counterparty to all traders.
GLP liquidity pools employ Chainlink’s dynamic aggregation prediction machine to receive pricing information from copyright, FTX, and copyright exchanges and filter out extreme values that lack actual liquidity.
There are multiple competitors within the DeFi space that also offer perpetual futures. At the same time, there is the looming threat of centralized exchanges that will always have a portion of the market share.
GLP liquidity pools employ Chainlink’s dynamic aggregation prediction machine to receive pricing information from copyright, FTX, and copyright exchanges and filter out extreme values that lack actual liquidity.
These items help the website operator understand how the sitio performs, how visitors interact with it, and whether there are any technical issues. This type of storage typically doesn't collect information that identifies a visitor.
GMX is a relatively new token that poses a higher than normal risk, and as such will likely be subject to high price volatility.