GMX

GMX - a Decentralized Perpetual Exchange

What is GMX?

GMX is a decentralized exchange (DEX) on the Arbitrum and Avalanche blockchains. It offers a platform for spot trading, allowing immediate asset swaps.

GMX users can also engage in more complex actions, like perpetual trades. These trades allow users to borrow funds and hold their long/short positions indefinitely. They tend to be more risky than regular spot trades, but they offer higher potential profits as traders take advantage of leverage to magnify their profits.

GMX is designed to facilitate low swap fees and enable price impact-free trades. The trading process on the platform relies on a distinctive multi-asset pool, through which liquidity providers earn fees from market making, swap activities, and leveraged trading.

What is unique about GMX?

GMX token

GMX token is the platform’s native token. As the utility token, it is used for trading, staking, and liquidity providing on the protocol. It is also the governance token – GMX holders have voting rights on all decisions regarding the protocol.

GLP token

GLP is minted when users provide liquidity to the protocol’s liquidity pools. It consists of an index of assets used for swaps and leverage trading. This index comprises GMX, BTC, ETH, DAI, WBTC, and UNI, among others.

GMX Blueberry Club (GBC)

GBC is an NFT collection consisting of 10,000 NFTs on Arbitrum dedicated to the DeFi protocol.

Segue: The GMX and GLP tokens allow you to access and take advantage of various investment opportunities in the GMX ecosystem.

What's unique about GMX? Staking GMX, to name just one unique feature. Don't miss the rest of this article to find out more.

Staking GMX

Users who stake the GMX token receive three types of rewards:

  • esGMX: Escrowed GMX (eGMX) is used to reward users who lock GMX or GLP tokens. It cannot be traded or exchanged, but it can be vested for a period of 365 days to become actual GMX.
  • ETH/AVAX rewards: Depending on the blockchain you utilize, you can earn 30% of the platform fees generated from swaps and trading. If you are on the Arbitrum chain, you will receive rewards in Ether (ETH), and if you are on the Avalanche chain, you will receive rewards in Avalanche (AVAX).
  • Multiplier points: Multiplier Points reward long-term holders without inflation and boost ETH/AVAX rewards.

Staking GLP

You can also stake GLP tokens (the protocol’s liquidity provider tokens). Those who do so earn 70% of platform fees in the form of ETH on Arbitrum and AVAX on Avalanche. And because GLP holders provide liquidity for leverage trading, they will profit when leverage traders lose and vice versa.

What can I use GMX for?

Leverage Trading

Allows traders to borrow funds from a platform to increase their exposure to an asset. This amplifies potential profits but also raises the risk of larger losses, as gains and losses are calculated based on the total leveraged position.

Swap

This is what most people envision when they think about crypto trading– a direct exchange of one crypto asset for another. Since GMX is a DEX, swaps are facilitated by smart contracts.

Staking to earn platform fees

Stake GMX to earn 30% of trading fees from swaps and leverage trading

in either ETH or AVAX, depending on which chain you are on.

Provide Liquidity

Provide liquidity with GLP to earn 70% of platform fees from swaps and leverage trading in either ETH or AVAX, depending on which chain you are on.

GMX Blueberry Club

A monthly allocation of 5000 esGMX tokens is offered to the project by GMX.io to help the project and the community. 80% of the esGMX are distributed to GBC+GMX holders.


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