Liquidity providers can deposit single copyright to obtain GLP tokens or redeem previously deposited copyright with GLP tokens. GLP liquidity pools are immune to impermanent loss problems because the quantitative rule constraints of algorithmic quotes do not constrain them.
To trade perpetual contracts on GMX, users first select the trading pair they wish to trade and choose whether to go ‘Long’ or ‘Short’ based on their market predictions. Next, they set the parameters of their trade, including the asset used as collateral, the amount they wish to pay, and the asset they are betting on.
GMX is a decentralized copyright, meaning that it is not controlled by any central authority. This ensures that the GMX network is secure, transparent, and resistant to censorship.
This isolation prevents all liquidity providers from facing risk if one asset’s price is manipulated, as seen in past AVAX price manipulation attacks.
In many ways, the GMX exchange is a better trading platform from a trader’s point of view. Open and close positions at GMX are not bought and sold with an order book or AMM liquidity pool, so there are no slippage issues. In addition, the GMX protocol uses Chainlink’s dynamic aggregation prognostic machine to aggregate quotes from multiple exchanges, which filters out illiquid and abnormal extreme value prices, thus reducing the risk of liquidation.
These features primarily isolate risks among liquidity providers and incentivize arbitrageurs through varying fees to balance long and short positions. Trades that promote balance benefit from lower fees, favorable price impacts, no borrowing fees, and additional funding fee income.
Entenda saiba como resulta a corretora descentralizada GMX e saiba saiba como incluir o token no seu portfólio
The Innovation Zone is a dedicated trading zone where users are able to trade new, innovative tokens that are likely to have higher volatility and pose a higher risk than other tokens.
The tokenomics is as follows: 6M GMX allocated for XVIX and Gambit migration; 2M GMX paired with ETH for liquidity on Uniswap; 2M GMX set aside for vesting from Escrowed GMX rewards; 2M GMX tokens to the floor price fund; 1M here GMX tokens designated for marketing, collaborations and community developers; 250K GMX tokens distributed to the team linearly over a 2-year period.
GMX is powered by Chainlink Oracles. It uses an aggregate price feed from leading volume exchanges to reduce liquidation risk from temporary wicks.
AMM allow digital assets to be traded in a permissionless and automatic way by using liquidity pools instead of a traditional market of buyers and sellers.
Because of this interdependent relationship between liquidity providers and traders, there needs to be an incentive for users to provide liquidity.
The remaining GBCs are sold publicly at 0.03 ETH each, with the proceeds from the sale becoming a community development fund that currently holds over $750,000 worth of GMX and GLP. The project has many active contributors from the community, again demonstrating the grassroots nature of the GMX development team, which is based on the community and for the community.
Because the GMX protocol improves the traditional liquidity pool model, users of the GMX exchange may benefit or be at risk depending on what decentralized financial services they use and what role they play in the GMX exchange.