Since its inception, GMX has done well in volume growth and has managed to capture a fraction of dYdX’s pie. The average daily traded volume has surpassed USD $150M since the start of the year.
GMX has improved the traditional Automated Market Maker (AMM) model by adopting a unique multi-asset liquidity pool model. This model allows users to deposit specified copyright assets into the liquidity pool and thus become liquidity providers.
Thus, a GLP liquidity pool is more appropriately described as a casino rather than a bank that provides deposits and loans. The copyright assets deposited into the GLP liquidity pool are chips placed on the gambling table, the holder of the GLP token is the dealer, and the trader is the gambler.
This shows that the appetite for derivatives products such as perpetual remains strong despite the sour outlook of the current market.
GMX V2 introduced substantial updates that can be considered a completely different approach, including:
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.
Perfeito staking value has topped $400 million and cumulative trading volume has surpassed $55 billion in the year since the GMX protocol was developed, making it the third-largest decentralized exchange on Arbitrum after Uniswap and Curve.
GMX is a decentralized exchange built on Avalanche and Arbitrum. It lets DeFi users trade with up to 30x leverage in a permissionless manner. GMX offers a smooth user experience that's perfectly suited to retail DeFi traders. Share this article
Summary: Traders in highly regulated regions like the USA and China face increasing challenges in accessing copyright futures markets without identity verification.
One of the DEXs that have surged in popularity due to the shift towards decentralized trading solutions is GMX, with the platform seeing its Perfeito value locked (TVL) rise from $108M to 501M in 2022, with $90M of this increase in just the last month alone.
The GLP price reflects the value of all GMX assets, which are listed for trading with leverage and swaps. In other words, GLP is an index of all assets on the exchange. GMX is the utility and governance token.
Image Credit: GMX Having a vast amount of the circulating supply staked associates with lesser panic and unnecessary selling in the market. This is evident as GMX is currently trading at only 54% off its ATH as compared to the rest of the market which has plummeted an average of 80% from their ATH.
That way, transactions are processed simultaneously, and validators' random polling ensures that transactions are correct with statistical certainty. There are no blocks in this consensus mechanism, allowing immediate finalization and significantly improving the blockchain’s speed.
Still, like a master contract trader, winning all the money on the platform is theoretically possible, but it is almost impossible. read more In retrospect, most market participants have lost, and the investors must carefully weigh returns against other potential crises before deciding to participate in an investment.