We briefly discuss below the advantages and disadvantages of the GMX protocol for three types of users: users of exchange assets, liquidity providers, and speculative traders. What are the advantages and disadvantages?
GMX is a decentralized perpetual exchange tailored for copyright futures trading. According to the protocol, it boasts minimal swap fees and zero price impact. It also offers traders the flexibility to leverage up to 50x on major cryptocurrencies like BTC, ETH, among others.
In terms of perpetual contracts, the GLP liquidity pool works interestingly, a bit like an AAVE type of lending agreement, where the trader deposits a portion of the assets in the GLP liquidity pool as margin, then lends a higher value asset from the GLP liquidity pool to bet against the GLP liquidity pool, paying a percentage of interest every hour before the margin is liquidated or the asset is returned.
Additionally, 86% of the current circulating supply is staked on the platform showing investors’ trust in the project despite the bear market.
Because of this interdependent relationship between liquidity providers and traders, there needs to be an incentive for users to provide liquidity.
As you can see, the GLP liquidity provider is click here in a betting relationship with the trader, and when the trader wins, the GLP liquidity pool shrinks. Conversely, when a trader loses money, the GLP liquidity pool grows.
By carefully considering these insights, investors can better position themselves to capitalize on the opportunities presented by the GMX exchange during the next copyright bull run.
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.
GMX users can “long” or “short” up to 30 times the size of their collateral by borrowing funds from a large liquidity pool.
GMX is a fast-growing spot and perpetuals DEX on the Arbitrum and Avalanche networks. GMX supports low trading fees and zero price-impact trades for assets on their exchange. Just like many CEXs would, GMX allows leveraged trading too, supplying traders on their platform with up to 50x leverage.
Tais como mencionado acima, temos um processo de due diligence que aplicamos a novas moedas previamente por serem listadas. Esse processo controla quantas DE criptomoedas do Nicho global estãeste representadas em nosso sitio.
Changing the borrowing fee structure to only charge the side (long or short) with greater open interest, instead of charging both sides.
These items help the website operator understand how the site performs, how visitors interact with it, and whether there are any technical issues. This type of storage typically doesn't collect information that identifies a visitor.
The protocol is able to provide dynamic pricing thanks to Chainlink Oracles, and aggregation of price data from exchanges with high volumes.