- GMX offers a compatible trading platform for its users, favoring ease in accessibility, trade, and swap of cryptocurrencies
- Features like permissionless swapping, low swap fees, and zero price impact trades of crypto make it reliable for users.
- GMX’s allowance of up to 30x leverage on their trades makes it one of the most favorable crypto trading platforms.
GMX (Global Mail eXchange) started in 1997 as a Mail service and was reformed in 2021 as a platform for trading and swapping Crypto. It serves as a decentralized exchange (DEX) platform that basically combines Defi (Decentralized finance) and Crypto Exchange. Built on Ethereum layer 2 network-based Arbitrum during its inception, it is now solely an Arbitrum and Avalanche-based DEX platform, attracting almost 2,87,000 users to date.
GMX and GLP tokens
GMX facilitates crypto trades and swaps through its wallet. For a bunch of prominent cryptocurrencies, the GMX protocol offers Spot trading and swapping. GMX protocol can be easily linked through its wallet with stablecoins and crypto like ETH, WBTC, LINK, UNI, DAI, etc. Trading on it is made possible with the help of a multi-asset liquidity pool, which produces rewards for activities like liquidity trading, asset rebalancing, or swap fees.
GMX basically serves two primary purposes with its two distinctive tokens, namely the GMX token and the GLP token. The GMX token is used for governance, while the GLP token is used for trading liquidity. GLP basically tells you about the amount of liquidity an LP (Liquidity provider) has given into or deposited in the pool. Through the GMX token’s utility and governance, a staker is able to receive 30% of the fees collected across the platform.
Being a decentralized exchange, GMX offers leverage trading and swapping services, which is basically a bit similar to other Defi exchanges like Uniswap, along with leverage trading experience provided by Binance
GMX and Its Key Features
GMX offers various perks, which tend to make the overall trading experience for users quite smooth and trustworthy. The trade and swap of cryptocurrencies with low swap fees and zero price impact trades have given GMX an edge over other DEX platforms.
The dynamic ecosystem of GMX offers Perpetual trading, where leverages can range from 1.1x to 30.5x. Traders can choose to pick long or short periods. Liquidity trading through GLP helps the stakers acquire 70% of the platform fees as LP rewards. Buying and selling crypto gives cryptocurrencies their value as the price is fixed according to the laws of supply and demand. Thus keeping the whole ecosystem decentralized for the traders and making it possible for swaps to be executed at market price.
The swapping interface for traders and stakers is compatible and easy to use, and Users can earn passive income through this domain. Liquidity risks can be prevented because GMX collects prices for reliable and popular exchanges based on trading volumes. However, there is a security risk during the exchange or swapping of tokens between Arbitrum and Ethereum.
One of the future plans of GMX includes rolling out exchanges on a Third Blockchain Network. The trading volume of GMX through the trades of 2,50,000 + users has been almost 131 billion USD to date, making it a formidable DEX platform in the Crypto World. Also, GMX launched its own cryptocurrency named Tokenomics, which has caught the attention of many users due to its decentralized services.
