copyright gmx.io - Uma visão geral
copyright gmx.io - Uma visão geral
Blog Article
We briefly discuss below the advantages and disadvantages of the GMX protocol for three types of users: users of exchange assets, liquidity providers, and speculative traders. What are the advantages and disadvantages?
On the surface, the GMX protocol fulfills the wishes of almost all liquidity providers: long-term, stable, low-risk, high-yielding gold flows. But the truth is less rosy than it seems because GLP liquidity pools are more than just deposits and lending like banks. Their excess returns well above the general market interest come from traders’ forfeited margin, and the increased risk taken is traders’ profit.
GMX is a decentralized copyright, meaning that it is not controlled by any central authority. This ensures that the GMX network is secure, transparent, and resistant to censorship.
GMX does not use an order book to create a trading market or AMM to make quotes, so theoretically, there is pelo slippage. As long as liquidity is in the liquidity pool, orders of any size can be absorbed instantly without impacting the market price.
Arbitrum is a layer-2 blockchain which derives its security from the Ethereum network, which provides consensus and finality for Arbitrum transactions. In other words, Ethereum guarantees the validity of the rollup’s off-chain computation and data availability behind the computation.
These features primarily isolate risks among liquidity providers and incentivize arbitrageurs through varying fees to balance long and short positions. Trades that promote balance benefit from lower fees, favorable price impacts, pelo borrowing fees, and additional funding fee income.
GMX has a strong and active community of users and supporters. This community plays a crucial role in the development and success of the GMX project.
The Innovation Zone is a dedicated trading zone where users are able to trade new, innovative tokens that are likely to have higher volatility and pose a higher risk than other tokens.
Changing the borrowing fee structure to only charge the side (long or short) with greater open interest, instead of charging both sides.
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.
By delving into GMX tokenomics, traders and DeFi enthusiasts can gain a better understanding of the dual-token ecosystem that powers this innovative derivatives trading platform.
The goal of a liquidity provider is to passively deposit assets to earn income without the need for complex operations, which GMX does very well because GLP liquidity pools are used in a way that is not much different from depositing in a bank account. Liquidity providers are wary of erratic losses, which GMX also addresses, as GLP liquidity pools are single-asset deposits and withdrawals that do not convert the deposited assets into other assets due to price fluctuations.
For traders in regions with strict regulations like the USA, UK and China, finding copyright futures exchanges that don’t require identity verification is read more crucial.
Regarding protocol development, the GMX exchange has also issued GMX tokens. GMX tokens can be used for the protocol’s governance and staking, to adjust the rate structure and the weight of different copyright assets that affect the GLP liquidity pool, and to receive 30% of the transaction fees, funding rates, and clearing fees in the GLP liquidity pool. The proceeds are directly converted to ETH or AVAX.