The GMX token serves as both a utility and governance token within the platform. It accrues 30% of the platform’s generated fees, which include market making, swap fees, and leverage trading.
Yes, there is a referral program on GMX.io. Users can get fee discounts and earn rebates through the GMX referral program. The referral program has a tier system to prevent gaming through self-referrals.
EsGMX can also be vested over a one year period to yield regular GMX tokens. What makes this mechanism effective is that when esGMX is selected to be vested, the amount of GMX or GLP that was used to earn the esGMX is reserved.
However, this did not deter GMX’s growth in any real way thus far. Since the start of 2022, GMX averages a protocol revenue of USD $2M per month.
GMX is built on the Arbitrum, and Avalanche GMX provides trading services for spot and perpetual contracts on the chain. GMX supports up to 30x leverage, and users can enjoy low transaction fees and near-zero spreads.
GMX tokens can be purchased on decentralized exchanges such as Uniswap or SushiSwap. For this guide, we’ll use GMX as an example. Visit the GMX app website, connect your wallet and click on “Swap” to start trading.
Entenda saiba como resulta a corretora descentralizada GMX e saiba tais como incluir o token pelo seu portfólio
On every centralized exchange, liquidity is achieved from a traditional order book model which is reliant on market makers. An order book lists the quantities of the asset being bid on or offered at each price point, or market depth.
Similarly, when redeeming GLP for any of the index assets, liquidity providers are rewarded for selecting to receive assets which are currently overweight in the pool: GLP is constantly being rebalanced by GLP minters and redeemers.
The GMX token also has a floor price fund. It’s used to ensure that the GLP pool has sufficient liquidity, provide a reliable stream of ETH rewards for staked GMX and buy and burn GMX tokens in order to maintain a minimum price of GMX against ETH.
This advantage is even more pronounced when large transactions are needed and decentralized exchanges such as 1inch have integrated GLP. Other here decentralized exchanges, such as 1inch, also integrate liquidity from GLP liquidity pools. Yield YAK offers income products supporting GLP and GMX, and the profits earned are automatically reinvested.
Due to the high leverage on the platform, liquidity provided on the platform is highly capital efficient. This creates relatively high APRs on GMX for GLP stakers, with the current APR hovering around 20%.
GMX is underpinned by using both Arbitrum and Avalanche networks. These blockchains enhance transaction efficiency and security. Arbitrum is leveraging Ethereum's layer-2 solutions for scalability, and Avalanche using a DAG-based consensus protocol for rapid transaction finality.
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.