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.
From the social media and the GitHub public codebase, it is clear that this anonymous team is working hard on its development. While it’s impossible to rule out the possibility that the team disbanded and the project was abandoned, their ability to deliver products and introduce new features is evident to everyone and has earned them the trust of the copyright community and other projects.
$GLP holders have exposure to all of these assets, as well as trading fees and some rewards in the form of $esGMX tokens.
With approximately 80% of GLP revenue coming from margin trading, this indicates that GMX’s profitability is the result of a sizable number of retail traders.
The GMX project encourages community engagement with the protocol, this includes facilitating the development of community-developed projects. Some examples of successful projects include:
GMX is the utility and governance token. Accrues 30% of the platform's generated fees and distributes it to all GMX stakers.
Don’t miss our comprehensive article on DeFi perpetual exchanges and their significant impact on the forthcoming bull market in the copyright space.
A Perfeito of 30% of the fees generated from swaps and leverage trading on the GMX exchange are converted to ETH / AVAX and distributed to all the staked GMX tokens. If you are staking your GMX tokens on the Arbitrum Blockchain you would receive ETH, if you are staking on the Avalanche Blockchain then you would receive AVAX.
GMX launched its first version, V1, on Arbitrum in September 2021. V1 employed a unique exchange model that allowed users to trade without the need to provide liquidity.
Trading fees and bid-ask spreads are liquidity providers’ primary income sources. However, those who buy and sell frequently and in big quantities prefer lower costs, tighter bid/ask spreads, and greater market depth.
But is a trader bound to lose money? What if the opponent is from a top quantitative trading team or a famous hedge fund trader? Is Soros confident that he can win and not lose when he sits across from you? Although the rate rules benefício liquidity providers, there is pelo guarantee that extreme cases of huge liquidity losses will not occur.
The perpetual futures market space is colossal. Just think of how many degens there are out there, even in a bear market, trying to leverage their way to riches.
Although GMX’s proposed multi-asset liquidity pool model has proven its feasibility here and its community-oriented business objectives have been well received by many investors, it should be noted that GMX’s development team has remained anonymous. The GLP liquidity pool is still subject to the risk of smart contracts or the possibility of liquidity depletion.
Liquidity providers want high returns, and GMX opens the way to make this possible. As long as the market traders lose money, returns will increase. Liquidity providers do not want to take the risk of loss, GMX uses statistics to show that short-term losses will occur, but long-term profits are the inevitable result.