GMX PriceGMX

What is GMX (GMX)?

With GMX, you can trade top cryptocurrencies directly from your wallet with up to 30x leverage and no swap fees.

A multi-asset liquidity pool operates on the DEX. Fees can be earned by those who provide liquidity. Market making, asset rebalancing, leveraged trading, and swaps all incur these fees.

The exchange hopes it can attract users as well as providers. The DEX also offers 'dynamic pricing' due to its low fees and the Chainlink (LINK) oracles implemented. A price feed aggregated across its platform also eliminates the risk of liquidations caused by temporary wicks."

Avalanche (AVAX) and Arbitrum blockchains supported GMX as of 30 November 2022.

Who founded GMX?

There needs to be more information about who founded GMX. Two previous protocols by the same team, XVIX and Gambit, have been successfully launched.

A new AMM called X4 is also being developed by the team. My understanding is that X is the developer in charge.

How does GMX work?

 In addition to its unique features, GMX is not the first decentralized derivatives market.

Community-operated liquidity pools, known as 'unionized,' are the core of GMX. In leveraged trading, GLP provides liquidity. (Leverage makes it easy!) GLP holders earn when traders lose.

Two types of fees are charged to traders on GMX:

• 1% of the position size is the trading fee for opening a trade.
• "Borrow fee" equivalent to (assets borrowed)/(total assets in the pool) * 0.01% per hour.

Depending on the asset, the borrowing fee changes: it's lower for less prevalent and more elevated for more widespread assets.

All platform fees are split between GMX and GLP token holders:

• 30% to GMX stakers.
• 70% to GLP holders, i.e. liquidity providers.

How Does GMX Work? 

A multi-asset pool known as GLP facilitates trading on GMX. Uniswap and Chainlink are both altcoins, and there are 50-55% stablecoins, 25% ETH, and 20% BTC in the mix.

In GMX, liquidity providers' liquidity is added by minting GLP (GMX Liquidity Provider Tokens). This blockchain allows them to earn 70% of all fees from minting GLP. It is important to note that GLP does not suffer an impermanent loss like some liquidity pools.

This liquidity pool is open to anyone interested in becoming a supplier and earning fees. Aside from perpetual swaps, users can also trade spots in the assets provided. A GLP token holder becomes a counterparty to traders when they lose a trade as they provide liquidity to leveraged trades.

You can mint a GLP token with any index asset and burn a GLP token for a return of any index asset. There is no transferability or automatic stake for this token, unlike the GMX token. There is a difference between Arbitrum and Avalanche regarding GLP's price, rewards, and index composition.

GMX Stacking

Connect your wallet and click "Stake" to stake your GMX tokens and earn rewards.

After the transaction is confirmed on-chain, you will be rewarded 30% of GMX's protocol fees and esGMX and Multiplier Points.

GMX users will see that "Total Rewards" increases all three reward types. Your earned rewards can be staked and compounded by clicking "Compound."

Why GMX?

In the case of a perpetual swap, there is no expiry date, so the instrument can be held for an indefinite period. To support very leveraged positions, endless in DeFi requires little capital upfront.

A specific feature of the GMX project is non-custodial perpetual swap trading, emphasizing a user-friendly user experience. Longs and shorts can be executed on GMX quickly, efficiently, and cheaply. LPs earning money from leveraged trading and swaps can also contribute assets to the protocol's multi-asset pool system.

The perpetual futures market is also crowded with competitors within the DeFi space. Additionally, centralized exchanges will always hold a significant market share, which poses a threat to the market as a whole.

Is GMX a Good Investment?

As of September 2021, GMX tokens were trading for around $15. Soon after its launch, the token was caught up in a recent significant crypto market crash. 

Between November 10, 2021 (when the crypto market started falling precipitously) and mid-June 2022 (when the market finally managed to stabilize), the overall industry market cap dropped by 69 percent (from $3 trillion to $920 billion). 

Concurrently, GMX's token price declined somewhat less severely by 58 percent (from $33 to $14).

On September 1 (the time of this writing), the token's value rose from $14 in mid-June to $47.80, an increase of 241 percent from its mid-June price of $14. 9 percent of the cryptocurrency market (from $920 billion to $1 trillion) has increased since the beginning of the year.

This token is clearly very popular in the market. Various options are available to advanced traders on the platform, which is a critical factor for this optimism. 

A new feature, X4, is in the pipeline for the exchange. Liquidity providers can customize the pool and option structure using X4, an AMM pool concept.

Accordingly, GMX is one of the best long-term investment options, given its recent rally and the strategy adopted by the platform.

GMX(GMX) Token Metrics
 

Where is the GMX(GMX) coin available?

GMX(GMX) is available on a variety of cryptocurrency exchanges. The list of quick, secure, and easy exchanges is listed below.

• Binance
• Huobi
• Bybit
• Gate.io
• Bitget
   

You can check the whole list of exchanges here to buy GMX(GMX).