Many decentralized exchange aggregation protocols also benefício the zero transaction spread of the GMX protocol. Yield YAK, a revenue aggregation protocol on the Avalanche blockchain network, has more than 35% of its trading volume done through the GLP liquidity pool.
Stakers can earn three types of rewards when they lock up GMX: escrowed GMX (esGMX), multiplier points, and ETH or AVAX rewards. esGMX is a derivative that can be staked or redeemed for GMX over a period of time, while multiplier points reward long-term GMX stakers by boosting the interest rate on their holdings.
The development team of the GMX protocol is also very much in the style of Web 3, and the members are all anonymous, so pelo one knows who they are yet, but the only thing for sure is that they have made a great product. According to the list of members of the social software Telegram, the GMX team consists of the following members (all names are displayed in Telegram)
An essential aspect of the GMX platform is its dual-token ecosystem, comprising the GMX token and the GLP token. These tokens serve different purposes: GMX as a utility and governance token, and GLP as a liquidity provider token.
So why would traders still want to use the GMX protocol for trading? Because the market depth of GMX is excellent, and there are pelo slippage problems. Because the profit of trading is from the spread trading, using the order book trading or AMM liquidity here pool trading will be due to a large amount of buying or selling to increase costs or reduce profits, but through the GLP liquidity pool to open.
GMX is founded by a completely anonymous team. However, it is known that the team has a track record of two other successful protocol launches in XVIX and Gambit.
GMX tokens can be bridged between the Ethereum and Arbitrum networks. However, there is a 7-day waiting period when tokens will be not accessible during the bridging process.
While Jupiter offers up to 100x leverage, Drift stands out by providing more diverse trading opportunities with maximum leverage of 20x.
Moreover, the use of no-KYC exchanges carries risks like potential for legal issues and the possibility of these platforms being shut down or restricted.
Trading fees and bid-ask spreads are liquidity providers’ primary income sources. However, those who buy and sell frequently and in big quantities prefer lower costs, tighter bid/ask spreads, and greater market depth.
This advantage is even more pronounced when large transactions are needed and decentralized exchanges such as 1inch have integrated GLP. Other decentralized exchanges, such as 1inch, also integrate liquidity from GLP liquidity pools. Yield YAK offers income products supporting GLP and GMX, and the profits earned are automatically reinvested.
Due to the high leverage on the platform, liquidity provided on the platform is highly capital efficient. This creates relatively high APRs on GMX for GLP stakers, with the current APR hovering around 20%.
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.
Even as GMX takes the lead in the spot and perpetuals DEX space, the GMX team continues to build and develop new features for the platform.