Enter the amount of ETH you’d like to swap for GMX tokens. GMX.io will display the equivalent amount of GMX tokens you’ll receive.
When a user opens a trade or deposits collateral, GMX takes a snapshot of its dollar value. The value of the collateral does not change throughout the trade even if the price of the underlying asset does.
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.
Also, a governance vote will be conducted before any changes. In addition, minting of GMX beyond the maximum supply is controlled by a 28-day timelock. GMX.io team has also created a dashboard where users can find all the descriptions regarding the GMX token.
DEXs allow users to trade as if they were on a traditional CEX, but with their funds safely in the custody of their personal copyright wallet. Many DEXs also permit trading without requiring users to complete the Know Your Customer (KYC) process, which attracts many traders looking to preserve their anonymity.
Liquidity providers can deposit single copyright to obtain GLP tokens or redeem previously deposited copyright with GLP tokens. GLP liquidity pools are immune to impermanent loss problems because the quantitative rule constraints of algorithmic quotes do not constrain them.
GMX tokens can be bridged between the Ethereum and Arbitrum networks. However, there is a 7-day waiting period when tokens will be not accessible during website the bridging process.
With a unique method for incentivizing and bootstrapping liquidity on its exchange, GMX stands out from its competitors. This is done via the use of $GLP, the protocol’s liquidity provider token.
GMX.io is a DEX that is built on Arbitrum and Avalanche. Users can trade their BTC, ETH, AVAX, and other top cryptocurrencies with up to 30x leverage directly from their wallet. It is also supported by a multi-asset pool that earns liquidity providers fees from market making, swap fees, and leverage trading.
Among the new features, dYdX V4 introduces permissionless markets, allowing users to list and trade any asset instantly, provided there is an oracle price available.
A liquidation occurs when a user’s collateral becomes insufficient to maintain a trade; the platform then forcefully closes the position and pockets the deposit to cover its losses.
The opinions expressed in this blog do not constitute investment advice and independent financial advice should be sought where appropriate.
The advantages of the GMX protocol model for users of exchange assets are apparent. Regarding transaction fee rates, GMX is the same as most other decentralized exchanges, around 0.3% of the total transaction amount. Still, regarding exchange rate stability, GMX outperforms almost all of its competitors in the market.
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 and what role they play in the GMX exchange.