GMX is built on a state-of-the-art blockchain that offers a high level of security and scalability. This blockchain is designed to handle a large volume of transactions efficiently, making GMX a reliable choice for users who value speed and convenience.
GMX also supports perpetual contract trading with up to 30x leverage, zero spreads, and aggregated oracle quotes to help traders reduce liquidation risk, more accurately control positions, and predict gains and losses.
Additionally to this, you will also earn escrowed GMX (esGMX), which are "locked" GMX tokens. If you decide to "unlock" these esGMX tokens, they will fully vest over 365 days and turn into regular claimable GMX tokens.
As you can see, the GLP liquidity provider is in a betting relationship with the trader, and when the trader wins, the GLP liquidity pool shrinks. Conversely, when a trader loses money, the GLP liquidity pool grows.
The launch of GMX V2 further solidified GMX’s position in the decentralized exchange sector, attracting more users and liquidity.
GMX is committed to complying with all relevant regulations and laws. The project works closely with regulatory bodies to ensure that GMX is a safe and legal digital asset.
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.
Polymarket is a leading decentralized prediction market based on Polygon, and recently garnered attention as the US Presidential election race heats up.
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 here 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.
The esGMX reward can be linearly unlocked into GMX tokens after one year by pledging GMX tokens or GLP tokens to encourage long-term pledging and provide liquidity.
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.
Image Credit: GMX Having a vast amount of the circulating supply staked associates with lesser panic and unnecessary selling in the market. This is evident as GMX is currently trading at only 54% off its ATH as compared to the rest of the market which has plummeted an average of 80% from their ATH.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.io.
GMX innovatively redefines liquidity pools, allowing users to exchange assets at a low cost and without price slippage, even for large transactions. For liquidity providers, GLP liquidity pools are not plagued by impermanent losses. They can add and redeem liquidity with a single asset and earn various revenues, such as transaction fees, funding rates, and liquidation fees.