GMX boasts several features that differentiate it from other decentralized exchanges, such as low swap fees, zero price impact trades, and Chainlink Oracles integration.
In centralized exchanges (CEXs), these futures often come with more trading pairs and higher leverage, but they require users to trust the exchange's custody and operational integrity.
A leading decentralized perpetual protocol has not exactly been established yet in my opinion. Interest in the copyright market is manifestly fading in the midst of the current bear market.
This shows that the appetite for derivatives products such as perpetual remains strong despite the sour outlook of the current market.
In many ways, the GMX exchange is a better trading platform from a trader’s point of view. Open and close positions at GMX are not bought and sold with an order book or AMM liquidity pool, so there are no slippage issues. In addition, the GMX protocol uses Chainlink’s dynamic aggregation prognostic machine to aggregate quotes from multiple exchanges, which filters out illiquid and abnormal extreme value prices, thus reducing the risk of liquidation.
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, no borrowing fees, and additional funding fee income.
These fees are paid in ETH or AVAX and distributed to GMX stakers. Token holders use their GMX tokens to vote on proposals, shaping the future of the exchange.
Users can deposit their copyright into the GLP pool to become liquidity providers and receive credentials for GLP tokens. Users staking GLP tokens can receive transition fees, funding fees, and liquidation fees, which fees will directly convert to the native assets of that blockchain network.
In that case, suddenly, a large number of users in the market using USDC stablecoins to buy LINK tokens in stock, the number of LINK tokens in the GLP liquidity pool will decrease dramatically, and the increased utilization of funds will prompt the contract to go long. The funding rate of LINK will rise rapidly. In other words, the price impact of large transactions on the liquidity pool is still there, but the cost is passed on to traders as funding rates.
The token also facilitates fee payments for trading operations and grants holders governance rights, allowing them to participate in decision-making processes regarding the development of the GMX platform.
Envision a copyright exchange that expertly merges the advantages of both centralized and decentralized platforms, providing users with an unparalleled trading experience. Welcome to GMX.io, a rising star in the copyright sphere that has the potential to outshine its competitors during the next copyright bull run.
Changing the borrowing fee structure to only charge the side (long or website short) with greater open interest, instead of charging both sides.
Traders or users who exchange assets use the GLP liquidity pool to buy and sell. Regarding spot trading, the GLP liquidity pool is not very different from other automated market maker agreements in that it charges 0.
Complete the tasks to qualify for potential airdrops and rewards. Follow step-by-step instructions and track task updates and statuses to become one of the potential recipients of the SphereOne Airdrop.