GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero-price impact trades. On the GMX platform, trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees, and leverage trading.
It also supports dynamic pricing through an aggregate of prices from leading volume exchanges. GMX is the platform’s utility and governance token, holding the token unlocks a variety of benefits. GMX is a decentralized exchange allowing trading without the need for a username or password. The platform uses an aggregate price feed which reduces the risk of liquidations from temporary wicks.
GLP
GLP is the platform’s liquidity provider token. GLP consists of an index of assets used for swaps and leverages trading. It can be minted using any index asset and burnt to redeem any index asset. The price for minting and redemption is calculated based on (the total worth of assets in the index including profits and losses of open positions) / (GLP supply).
Who are the founders of GMX (GMX)?
The founder of GMX is Arthur Hayes.
What is GMX (GMX) used for?
Cross-platform transactions
GMX can be bridged between Arbitrum and Avalanche using Synapse. GMX tokens can be bridged between Ethereum and Arbitrum. All features are on Arbitrum so there should be no strong reason to bridge tokens. If you bridge tokens from Arbitrum to Ethereum there will be a 7-day waiting period during which you will not have access to your tokens.
Mint
GLP is specific to the network you mint it on, it is not directly transferable between networks and the price/rewards to the tokens will differ between networks.
Provide liquidity
As GLP holders provide liquidity for leverage trading, they will make a profit when leverage traders make a loss and vice versa.
Reduce Liquidation Risks
An aggregate of high-quality price feeds determines when liquidations occur. This keeps positions safe from temporary wicks.
Save on Costs
Enter and exit positions with minimal spread and zero price impact. Get the optimal price without incurring additional costs.
Simple Swapping
Open positions through a simple swap interface. Conveniently swap from any supported asset into the position of your choice.
Staking
Staked GMX receives three types of rewards: Escrowed GMX, Multiplier Points, and ETH / AVAX Rewards. If you compound or stake your Escrowed GMX tokens, you can unstake them for vesting at any time later on.
Vesting
Escrowed GMX (esGMX) tokens can be converted into GMX tokens through vesting. When vesting is initiated, the average amount of GMX or GLP tokens that were used to earn the esGMX rewards will be reserved.
Rewards
GMX Rewards provide benefits for long-term users of the protocol; these rewards come in the form of Escrowed GMX and Multiplier Points. There are two options for rewards: “Compound” and “Claim”. Compounding will stake your pending Multiplier Points and Escrowed GMX rewards, this will increase the number of rewards you receive. Claiming will transfer any pending Escrowed GMX rewards and ETH / AVAX rewards to your wallet.
How is GMX (GMX) unique?
30% of fees generated from swaps and leverage trading are converted to ETH / AVAX and distributed to staked GMX tokens. If you are staking on Arbitrum you would receive ETH, if you are staking on Avalanche then you would receive AVAX.
The GMX token has a floor price fund in ETH and GLP. It grows in two ways: GMX/ETH liquidity is provided and owned by the protocol, and the fees from this trading pair will be converted to GLP and deposited into the floor price fund
50% of funds received are sent to the floor price fund, and the other 50% is used for marketing
The floor price fund helps to ensure liquidity in GLP and provides a reliable stream of ETH rewards for all staked GMX. As the floor price fund grows, it can also be used to buy back and burn GMX if the (Floor Price Fund) / (Total Supply of GMX) is less than the market price. This would lead to a minimum price for GMX in terms of ETH and GLP.
How many GMX (GMX) coins are in circulation?
The increase in circulating supply will vary depending on the number of tokens that get vested, and the number of tokens used for marketing/partnerships. The forecasted max supply is 13.25 million GMX tokens.
Minting beyond the max supply of 13.25 million is controlled by a 28-day timelock. This option will only be used if more products are launched and liquidity mining is required, a governance vote will be conducted before any changes. It is shared as follows:
- 6 million GMX from migration.
- 2 million GMX paired with ETH for liquidity.
- 2 million GMX reserved for vesting from rewards.
- 2 million GMX tokens to be managed by the floor price fund.
- 1 million GMX tokens reserved for marketing, partnerships, and community developers.
- 250,000 GMX tokens distributed to contributors linearly over 2 years.
How is the GMX network secured?
The GMX contracts have been audited by ABDK Consulting, which is focused on consulting, smart contracts, and blockchain services. There is also a GMX bug bounty that is focused on rewarding hackers that find loopholes in their smart contracts.
The GMX bug bounty program is focused on their smart contracts and app and is focused on preventing: Direct theft of any user funds, whether at rest or in motion, other than unclaimed yields. Rewards are distributed according to the impact of the vulnerability based on the Immunefi Vulnerability Severity Classification System V2.2.
This is a simplified 5-level scale, with separate scales for websites/apps and smart contracts/blockchains, encompassing everything from the consequence of exploitation to the privilege required to the likelihood of a successful exploit.
How do I buy GMX (GMX)?
The GMX token can be used for a wide range of purposes, like staking and governance.
GMX tokens can be easily purchased by following the following steps.
Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and buy GMX through your trading account by swapping with BTC, ETH, or USDT pairs.
Which Cryptocurrency Wallet Supports GMX (GMX)?
The PTPWallet platform supports many cryptocurrencies, with GMX soon to be included. Because of its vast use case, PTPWallet has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. The platform offers a simple user interface, is supported by both Android and iOS devices, and comes with its own mobile wallet app.
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