GMX operates as a decentralized exchange (DEX) allowing users to trade perpetual cryptocurrency futures with leverage as high as 50X on well-known cryptocurrencies like BTC, ETH, among others. The platform made its first appearance in September 2021 under the name Gambit Exchange. So far, GMX has facilitated a trading volume exceeding $130 billion and boasts a user base of 283,000, solidifying its position as the top derivatives DEX on Arbitrum and Avalanche.
The platform functions on both the Arbitrum and Avalanche blockchains, connected through Synapse, which serves as a cross-chain bridge.
Who founded GMX?
The creators of GMX remain anonymous, though the lead developer is probably @xdev_10 on Twitter.
What sets GMX apart from others?
Unlike centralized exchanges (CEXs) that use an order book system, GMX uses a unique take on the automated market model (AMM), similar to Uniswap. It includes a specialized multi-asset pool known as GLP, which earns profits for liquidity providers.
GLP functions as a diverse liquidity pool encompassing ETH, BTC, LINK, UNI, USDC, USDT, DAI, and FRAX as of now. Market prices are determined via Chainlink's oracles, which source token price information from leading exchanges.
The platform's ecosystem revolves around two tokens: GLP and GMX. GLP is used to provide liquidity, and its price mirrors the collective value of all GMX assets available for leveraged trades and swaps. Essentially, GLP acts as an index for all the exchange's assets. GMX serves as both a utility and governance token.
Users can generate liquidity by creating GLP, earning them 70% of all fees produced on the relevant blockchain. Uniquely, GLP does not face impermanent loss like other liquidity pools. Moreover, the GLP pool functions as the counterparty to traders. When GLP token holders provide liquidity for leveraged trades, they benefit from traders’ losses, and vice versa.
How many GMX tokens are currently in circulation?
As of now, there are over 8.7 million GMX tokens in circulation, with a projected cap of 13.25 million GMX tokens.
The tokenomics are structured as follows: 6 million GMX for the migration from XVIX and Gambit; 2 million GMX paired with ETH for liquidity on Uniswap; 2 million GMX reserved for vesting from Escrowed GMX rewards; 2 million GMX for the floor price fund; 1 million GMX allocated for marketing, partnerships, and community development; and 250,000 GMX distributed to the team over two years.
How does GMX ensure network security?
GMX operates on the Arbitrum and Avalanche blockchains.
Arbitrum, a layer-2 blockchain, gains its security from Ethereum, which offers consensus and finality for its transactions. Essentially, Ethereum ensures the reliability of the rollup's off-chain processing and data availability.
On Avalanche, rather than relying on proof-of-work or proof-of-stake, the network uses a consensus mechanism without a single leader processing transactions. Instead, all nodes participate in processing and validation, using a directed acyclic graph (DAG) protocol. This approach allows transactions to be processed simultaneously, with validators engaging in random polling to confirm transaction accuracy with near certainty. The absence of blocks in this system leads to instant finalization and a notable boost in blockchain speed.
Additionally, GMX contracts are reviewed by ABDK Consulting, and there's an active bug bounty program for GMX hosted on Immunefi.
Where is GMX available for purchase?
You can purchase GMX on various cryptocurrency exchanges, including Binance, KuCoin, and Kraken.
Interested in monitoring GMX prices live? Download the CMC mobile app to stay updated on the real-time prices of GMX, BTC, and other cryptocurrencies.
