On this article we’ll discover GMX, a decentralized DEX for everlasting buying and selling that lets you leverage as much as 50X on varied cryptocurrencies akin to BTC, ETH and lots of different altcoins.
In a brief time period, the platform has managed to develop into very well-known on this planet of DeFi due to its fascinating options that will let you function in crypto markets in a quite simple and environment friendly manner.
Right this moment, GMX boasts a TVL of $500 million and a cumulative quantity of $200 billion since inception.
Let's see all the small print under.
GMX: the preferred decentralized everlasting cryptocurrency buying and selling DEX within the DeFi world
GMX is a decentralized DEX that enables spot and everlasting buying and selling with as much as 50x leverage on a variety of cryptocurrencies akin to BTC, ETH, SOL, DOGE, LINK, BNB, ARB, AVAX, NEAR and lots of extra.
Right here, customers can alternate property on the chain just by connecting their non-hidden wallets, or they will act as liquidity suppliers by blocking collateral for trades and incomes buying and selling charges.
Initially born from nameless founders underneath the identify Gambit Finance and launched on the BNB chain, it was then renamed to GMX and launched on Ethereum layer 2 Arbitration in September 2021.
Right this moment, it has additionally expanded to Avalanche and has develop into extraordinarily in style in DeFi, particularly amongst customers in search of an environment friendly and high-performance decentralized platform.
The numbers communicate for themselves: as of Might 6, 2024, GMX has a 7-day quantity of $1.25 billion, cumulative quantity of $199 billion, TVL of $436 million, and cumulative charges collected of $308 million.
From a technical perspective, GMX launched a brand new strategy to conceive decentralized buying and selling on DEX.
First, as a substitute of choosing a traditional DEX structure with twin token swimming pools, GMX makes use of one liquidity pool composed of fifty% stablecoins (USDC, USDT, DAI, FRAX) and the remaining 50% varied tokens akin to ETH and BTC.
All customers who commerce on the platform draw from this pool of cryptographic sources, inside which the worth of particular person cash is secured by the Chainlink oracles worth feed, which ensures the accuracy and reliability of the information.
One of these multi-asset fund is owned by the neighborhood and is alternatively known as a GLP: By locking their cash on GMX, LP suppliers will obtain a corresponding quantity of GLP token representing their share of the liquidity supplied.
Subsequently, the protocol mechanically stakes the newly minted GLP tokens.
It’s value noting that those that present liquidity to decentralized DEX buying and selling obtain 70% of buying and selling charges within the type of esGMX tokens (a useful resource that ensures the identical rewards as GMX) and ETH or AVAX relying on the community, whereas the remaining 30% is obtainable to bettors platform.
It is rather necessary to emphasise how the simplicity, intuitiveness and immediacy of operations have been the successful options for GMX, permitting all the DeFi neighborhood to make use of the protocol, even amongst much less skilled customers. Furthermore, retailers revenue from it zero worth influence and really low buying and selling charges in comparison with the trade common.
GMX crypto: on-chain evaluation
The newly launched decentralized buying and selling DEX additionally encompasses a governing crypto, which bears the identical identify because the platform, i.e. GMX.
GMX token holders can take part in discussions relating to the event of the undertaking by voting on governance proposals by way of their affect share.
On the similar time, nevertheless, it may also be crypto locked in a wager to make the most of excessive returns. GMX stakers obtain three kinds of rewards: multiplier factors (factors that reward long-term holders), GMX saved as collateral, and rewards in ETH or AVAX relying on the unique chain.
Multiplier factors earned at 100% APR in comparison with the deposited quantity will then will let you earn extra commissions.
Nevertheless, in the mean time, on the worth entrance, the GMX token is just not crusing in good waters, as it’s buying and selling with a drawdown of round 70% in comparison with the April 2023 highs.
Within the final 10 weekly candles on the GMX-USDT buying and selling pair, we are able to observe how 9 of them are bearish, whereas just one signifies a timid inexperienced.
Weak point of GMX token; after going by way of a bear market and managing to face out from all different cryptocurrencies flawlessly, can also be largely as a result of entry into the market of decentralized everlasting DEX competitor Hyperliquid.
Fueled by the development of a attainable proprietary token airdrop, this newest platform has grown considerably in latest months and has managed to seize a few of GMX's market share.
Simply take into account that at first of the 12 months GMX had a market share of about 18%, whereas on the finish of April it was solely 3.5%.
It must also be famous that among the historic buyers within the GMX undertaking and token have not too long ago thrown out all their “luggage” and liquidated their holdings within the cryptocurrency.
Specifically, we spotlight how Arthur Hayes, the well-known crypto-billionaire and founding father of BitMEx, held tens of tens of millions of {dollars} in GMX till a number of months in the past, whereas he offered all of the tokens he owned in early April.
As of April 8, roughly 237,674 GMXs have been offered. This had a decidedly unfavorable influence on the worth motion of the asset.
