GMX

What is GMX?

GMX functions as a decentralized spot and perpetual exchange, facilitating trades with minimal swap fees and low price impact. The platform relies on distinctive multi-asset pools, allowing liquidity providers to earn fees through market making, swap fees, and leverage trading.

The pricing mechanism is dynamically maintained with the assistance of Chainlink Oracles and a compilation of prices sourced from prominent high-volume exchanges.

---

Recent Video Interview

Main points of the interview:

• Technical hurdles like Chainlink integration and protocol stability.
• Reflects on GMX's growth amid market uncertainties and product maturation.
• V2 enhancements for targeted liquidity provision and ecosystem support.
• Strategic partnerships and future developments in decentralized finance (DeFi) markets.

---

Key Benefits of GMX

Mitigate Liquidation Risks: Liquidations are triggered based on a compilation of reliable price feeds, safeguarding positions from abrupt market fluctuations.

Cost-Efficient Trading: Initiate and close positions with minimal spread and negligible price impact. Secure the best possible price without incurring extra expenses.

Straightforward Swaps: Initiate positions through an uncomplicated swap interface. Effortlessly switch from any supported asset into the desired position.

The GMX Token

GMX serves as the platform's utility and governance token, unlocking various benefits for token holders. Staking GMX offers three types of rewards:

• Escrowed GMX
• Multiplier Points
• ETH/AVAX Rewards

Escrowed GMX (esGMX) serves a dual purpose within the platform. It can be staked for rewards, similar to regular GMX tokens, earning Escrowed GMX and ETH/AVAX rewards. Additionally, esGMX has the option to be vested over a one-year period, transforming into actual GMX tokens. Each staked Escrowed GMX token accumulates rewards in the same manner as a standard GMX token. Notably, esGMX is typically non-transferrable, except during a full account transfer. The vesting process requires a unique amount of GMX or GLP per account, with a maximum cap on the esGMX rewards received by that specific account.

Multiplier Points reward long-term GMX holders without inflation. Staking GMX earns these points continuously at a fixed 100% APR, and they can be staked for fee rewards, receiving ETH/AVAX at the same rate as regular GMX tokens. When GMX or Escrowed GMX is unstaked, a proportionate amount of Multiplier Points is burned. For example, unstaking 300 GMX from a total of 1000 GMX staked with 500 earned Multiplier Points would burn 150 points (300 / 1000 * 500), including both staked and unstaked points.

The ETH/AVAX Rewards originate from swap and leverage trading fees. If you stake on Arbitrum, you receive ETH; if staking on Avalanche, you receive AVAX.

Other Tokens in the GMX Ecosystem: GM and GLP

GM is the liquidity provider token designated for GMX V2 markets, accumulating 63% of the generated fees from these markets. On the other hand, GLP serves as the liquidity provider token for GMX V1 markets, accruing 70% of the fees generated within the V1 markets.

GMX Team Background and Partners

The founders of GMS remain anonymous, but it is probable that the lead developer can be identified as @xdev_10 on Twitter. Meanwhile, the most recent partnerships for GMX is Doppel, with the purpose to address and prevent online scams and threats to the community. The collaboration focuses on utilizing cutting-edge AI monitoring technology and fraud protection solutions to ensure the security of the GMX community against contemporary digital threats.

GMX Project Development

GMX V2 has successfully implemented Chainlink Data Streams on the Arbitrum mainnet, enhancing its capabilities. With this integration, GMX can offer real-time pricing updates and expedite on-chain transactions, resulting in improved protocol performance and enhanced data security. Additionally, the use of Chainlink Data Streams aids in mitigating frontrunning risks and significantly accelerates execution speeds. This integration leverages Chainlink's new low-latency oracle solution, specifically designed to cater to the latency-sensitive nature of derivatives exchanges and other high-precision DeFi products. The oracle solution ensures the delivery of fair, accurate, and high-frequency market data in a pull-based manner. The entire system is supported by Chainlink's industry-standard and proven infrastructure, featuring data cryptographically signed by a decentralized oracle network and verified on-chain.

GMX Price Analysis

As of November 25 2024 GMX has a marketcap of $314M. This is {{percentagefromath}} from its all time high of $91.07. In terms of its tokenomics, there's a total supply of 9.8M with 100% currently outstanding. Keep in mind GMX has a fully diluted value of $314M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.