Deep-dive into GMX
GMX enables leveraged trading i.e. trading assets using borrowed funds. This amplifies potential profits or losses.
GMX is a decentralized exchange for spot & perpetual trading of cryptocurrencies.
Spot trading is the purchase / sale of a financial instrument for immediate delivery and settlement. Perpetual trading relates to derivatives that do not have an expiration date.
GMX enables leveraged trading i.e. trading assets using borrowed funds. This amplifies potential profits or losses.
GMX charges low fees for swapping one crypto for another. It also supports trades that do not cause any significant change in the price of the traded assets.
Trading on GMX is supported by a unique multi-asset liquidity pool (GLP) comprising Bitcoin, Ether, Tether, Chainlink, and other cryptos.
The GMX ecosystem is based on two tokens:
GLP
GMX
GLP supplies liquidity and its price reflects the value of all the GMX assets that are listed for trading with leverage & swaps. GMX is the utility & governance token.
The liquidity providers earn fees from:
Market making i.e. providing liquidity by placing limit orders on both the buying & selling side of the order book. This enables easier trades.
Swap fees i.e. fees collected when users swap one cryptocurrency for another.
Spreads i.e. the difference between buying and selling prices.
Funding fees i.e. costs to keep a leveraged position open.
Liquidations i.e. fees charged when a leveraged position is closed due to insufficient collateral.
Asset rebalancing i.e. adjusting the proportions of different assets in the multi-asset pool.
GMX Metrics
Price: $55
All-Time High (18 April 2023): $91.07
All-Time Low (15 June 2022): $11.53
Staked: $393.11m (80.27% of Mcap)
Liquidity: $41.4 million
Fees (annualized): $132.5 million
Revenue (annualized): $39.8 million
TVL: $592 million
Market cap: $489 million
Circulating supply: 8.9 million GMX
Total supply: 9.3 million GMX
Max. supply: Unlimited
Volume (24h): $6.5 million
Volume (Annual): $9.2 billion