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About GMX
Key Points
- GMX is a decentralized exchange (DEX) for trading perpetual cryptocurrency futures with up to 50X leverage.
- Launched in September 2021 as Gambit Exchange.
- Total trading volume: over $130B.
- Total users: 283K.
- Runs on Arbitrum and Avalanche blockchain.
- Connected to the exchange via Synapse — a cross-chain bridge.
Founders and Tokenomics
- Founding team is anonymous, lead developer is likely @xdev_10 on Twitter.
- GMX token circulating supply: over 8.
About GMX: Empowering a New Era of Decentralized Perpetual Swaps
Introducing GMX: A Revolutionary Decentralized Perpetual Exchange
GMX is a decentralized exchange (DEX) facilitating the trading of perpetual cryptocurrency futures with leverage of up to 50X on prominent digital assets such as BTC, ETH, and others. Initially launched as Gambit Exchange in September 2021, GMX has since achieved a cumulative trading volume exceeding $130 billion and garnered a user base of over 283,000, solidifying its position as the premier derivatives DEX on Arbitrum and Avalanche.
GMX operates on the Arbitrum and Avalanche blockchain networks, seamlessly interconnected with the exchange via Synapse, a cutting-edge cross-chain bridge.
The Visionaries Behind GMX: Meet the Founders
The founding team has opted to remain anonymous, although the lead developer’s online presence can be traced to the Twitter handle @xdev_10.
Unveiling the Unparalleled Attributes of GMX
In contrast to the order book model utilized by centralized exchanges (CEXs),
trading is facilitated through an innovative adaptation of the automated market maker (AMM) model,
deployed by decentralized exchanges (DEXs) such as Uniswap. This pioneering approach features a native multi-asset pool,
GLP, which yields revenue for liquidity providers.
GLP functions as a diversified liquidity pool (LP), comprising a robust basket of assets, including ETH, BTC, LINK, UNI, USDC, USDT, DAI, and FRAX, at the time of writing. Notably, market prices are informed by Chainlink’s oracles, which aggregate token price data from a comprehensive range of top-tier exchanges.
The decentralized exchange ecosystem is founded upon a dual-token paradigm, comprising GLP and GMX. The former token is designed to facilitate liquidity provision. Notably, the GLP price serves as a reflection of the collective value of all GMX assets, which are listed for trading with leverage and swaps. In essence, GLP functions as a comprehensive index of all assets listed on the exchange. Meanwhile, GMX assumes the role of a utility and governance token.
By minting GLP, users can inject liquidity and, in return, receive a 70% share of all fees generated on the corresponding blockchain. Notably, GLP is immune to impermanent loss, a common pitfall affecting some liquidity pools. Moreover, the GLP pool assumes the role of a counterparty for traders. When GLP token holders provide liquidity for leveraged trading, they reap benefits when traders incur losses, and conversely, they incur losses when traders profit.
The Circulating Supply of GMX Coins: A Closer Look
As of this writing, the GMX token boasts a circulating supply exceeding 8.7 million. Notably, the anticipated maximum supply is capped at 13.25 million GMX tokens.
The tokenomics are structured as follows: 6 million GMX tokens are allocated for XVIX and Gambit migration; 2 million GMX tokens are paired with ETH to provide liquidity on Uniswap; 2 million GMX tokens are set aside for vesting from Escrowed GMX rewards; 2 million GMX tokens are designated for the floor price fund; 1 million GMX tokens are reserved for marketing initiatives, collaborations, and community developer support; and 250,000 GMX tokens are distributed to the team, vesting linearly over a 2-year period.
The GMX Network’s Robust Security Framework: A Comprehensive Overview
GMX operates on the esteemed Arbitrum and Avalanche blockchain networks.
Arbitrum is a layer-2 blockchain that leverages the robust security of the Ethereum network, which provides consensus and finality for Arbitrum transactions. In essence, Ethereum serves as a guarantor of the validity of the rollup’s off-chain computations and ensures the availability of the underlying data.
On Avalanche, the consensus mechanism diverges from traditional proof-of-work and proof-of-stake models, where a single leader processes transactions that are subsequently validated by others. Instead, all nodes engage in simultaneous transaction processing and validation, leveraging a directed acyclic graph (DAG) protocol. This enables concurrent transaction processing, while random polling by validators ensures the correctness of transactions with statistical certainty. Notably, this consensus mechanism eschews traditional blocks, facilitating immediate finalization and significantly enhancing the blockchain’s velocity.
The GMX contracts have undergone rigorous auditing by ABDK Consulting, and an active bug bounty program is in place on Immunefi, ensuring the utmost security and integrity of the system.
Where to Acquire GMX: A Comprehensive Guide
GMX is listed on a multitude of reputable cryptocurrency exchanges, notably Binance, KuCoin, and Kraken, ensuring seamless accessibility for traders and investors alike.
Stay ahead of the curve with real-time GMX price tracking. Download the CMC mobile app to access live prices of GMX, BTC, and a wide range of other cryptocurrencies at your fingertips.
Associated Resources
Delve into our comprehensive analysis of GMX.
Delve into the world of dYdX, a prominent decentralized exchange (DEX) specializing in derivatives trading.
Discover the power of Arbitrum, the pioneering Ethereum Layer-2 scaling solution, revolutionizing the decentralized ecosystem.
Discover Avalanche, a cutting-edge blockchain boasting EVM compatibility.
Delve into the world of perpetual contracts with our comprehensive CMC Glossary.