- The first GMX was launched on the Arbitrum blockchain when the network became live in September 2021.
- Uses Oracle to fetch crypto prices in real-time.
- Allows the traders to open leveraged positions through a simple swap interface.
What Is GMX?
It is a decentralized spot and perpetual exchange that allows user to trade BTC, ETH, and other popular cryptocurrencies. It aims to provide a better trading experience with low-level swap fees and zero price impact. The trading is done through its native multi-asset pools named GLP. The first GMX was launched on the Arbitrum blockchain when the network became live in September 2021. Arbitrum is an Ethereum solution designed to boost the speed and scalability of Ethereum smart contracts it provides its user to do spot swaps and trade perpetual for up to 50x leverages.
Working Of GMX
Using Oracle to fetch crypto prices in real-time. Chain Link Oracle uses the protocol to get accurate price data for assets in the pool. This allows it to pinpoint the liquidation risks and protect user positions. Users can benefit by providing liquidity to the exchange or stacking GMX crypto.
Any user can become a supplier to this liquidity pool if they want to do perpetual swap or spot tradeswith the assets provided to them.
It is a utility and governance token that allows holders to votes on critical decisions and proposals that are crucial to the future of the organization. The tokens get converted back into GMX over a 12-month period when a user vests them. By earning multiplier points, they can boast their yields and reward long-term holders.
The liquidity provider (LP) token of GMX is an index of a basket of assets. GPL tokens are minted when LPs deposit assets into the pool and burned when LPs redeem their deposited assets. LPs earn rewards in return for providing the pool with liquidity. Users cannot transfer LPs from Avalanche to Arbitrum and vice versa.
Uniqunity Of GMX
A simple swap interface allows traders to open leveraged positions. Unlike other decentralized exchanges, GMX has a multi-token asset pool using GPL tokens to offer a range of tokens and stable coins for investors and traders. It is self-custodian and trustless, in the sense that anyone can trade cryptocurrency directly from their private wallet.
Trading positions can be entered and maintained without affecting the price. It also uses an aggregate of chain link Oracles and other price feeds to smooth out price fluctuations. This can keep the positions safe from temporary liquidation. GMX offers a high level of leverage in perpetual contract-based trades. With low fees and an easy-to-use interface, pro-level trading of crypto assets on GMX is the USP of the exchange.