Enter the amount of ETH you’d like to swap for GMX tokens. GMX.io will display the equivalent amount of GMX tokens you’ll receive.
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.
With support for low swap fees and zero price impact trades, GMX quickly gained traction among traders seeking an edge in the competitive copyright market.
GMX V2 introduced substantial updates that can be considered a completely different approach, including:
Another drawback for DeFi futures is that the majority of the exotic pairs usually have very low volume and liquidity.
A: Purchasing GMX tokens is simple if you follow this detailed guide. Ensure you have a compatible wallet and follow the steps below to get started with GMX tokens.
GMX is a decentralized exchange that supports spot and perpetual contract trading. It encourages users to deposit copyright assets into a liquidity pool to become market makers and earn transaction fees.
Through an AMM, there will always be a willing counterparty at a given price as long as there is enough liquidity in the pool.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.io.
The GMX token also has a floor price fund. It’s used to ensure that the GLP pool has sufficient liquidity, provide a reliable stream of ETH rewards for staked GMX and buy and burn GMX tokens in order to maintain a minimum price of GMX against ETH.
Introducing funding fees determined by the open interest of long and short positions, facilitating balance between the two through arbitrage.
In contrast to traditional decentralized exchanges which use order books, GMX employs a different type of automated market maker (AMM) system. This system is backed by its native liquidity pool, GLP, which also serves to stabilize pricing through its integration with Chainlink oracles.
GMX is a blockchain-based project that operates as a decentralized spot and perpetual click here exchange. It allows traders to trade their cryptocurrencies directly from their wallets.
As long as there is liquidity in the pool, the exchange will complete the transaction without the risk of not finding a counterparty to match and being unable to trade.