GMX Exchange is a revolutionary decentralized exchange (DEX) offering perpetual cryptocurrency futures trading with up to 50x leverage. Built on Arbitrum (Ethereum L2) and Avalanche, GMX stands out with its unique fee model that rewards stakers of the native GMX token.
Features and Services
In addition to classic Spot Trading, GMX allows you to trade futures and perpetual futures on a variety of popular cryptocurrencies such as BTC, ETH, AVAX, LINK, UNI and others.
Futures are contracts that involve the purchase and sale of an asset at a predetermined price on a future date. Perpetual futures are similar to futures, but have no fixed expiration date and can be held indefinitely.
Liquidity is added when users mint GMX Liquidity Provider Token (GLP), in exchange they earn 70% of all fees generated on that blockchain.
Anyone can become a provider of this liquidity pool and earn commissions.
The GLP pool is a counterparty to traders as GLP token holders provide the liquidity used for leveraged trading, profit when traders lose and vice versa.
The GLP token can be created using any asset and burned to redeem any other asset in the index. Therefore, unlike the GMX token, the token is automatically staked and non-transferable.
The interface is very simple, similar to traditional trading platforms, but stands out as it is self-custodial and trussless, so anyone can exchange cryptocurrencies directly from their private wallet.
So the main tokens of the platform are two: GMX and GLP
The first is used for governance, to obtain interests of 30% of the entire platform's profits paid in *Escrowed GMX (esGMX), Multiplier points and ETH/AVAX depending on the chain in which they staked them.
*esGMX: Token representing a user's share of GMX profits, redeemable in GMX, ETH or AVAX.
Multiplier points: a user's staking rewards increase
GLP, the liquidity token, provides liquidity for trading on GMX. GLP stakers receive a portion of the trading fees generated by the liquidity pool in which they have deposited their tokens.
GMX, in conclusion, is a rapidly growing project with a promising future. The GMX team is busy developing a platform and adding new features. GMX is well positioned to become a leading DEX platform for derivatives trading.
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