GMX is a decentralized exchange (DEX) that enables users to trade perpetual cryptocurrency futures with up to 50x leverage on popular assets such as BTC and ETH. Launched in September 2021 under the name Gambit Exchange, GMX has since grown to become the leading derivatives DEX on both Arbitrum and Avalanche, with a total trading volume exceeding $130 billion and 283K users.
Unlike centralized exchanges (CEXs) that use an order book model, GMX operates through an Automated Market Maker (AMM) model, similar to protocols like Uniswap. GMX features a unique multi-asset liquidity pool called GLP, which generates revenue for liquidity providers. The GLP pool consists of assets such as ETH, BTC, LINK, UNI, USDC, USDT, DAI, and FRAX. Market prices are determined by Chainlink oracles, which aggregate price data from top exchanges.
The GMX ecosystem relies on two tokens: GLP and GMX. GLP is used to provide liquidity, with its price reflecting the value of the underlying assets. The GMX token serves as both a utility and governance token, with holders receiving 30% of the fees generated by the platform.
GMX operates on the Arbitrum and Avalanche blockchains, and the ecosystems are connected via Synapse, a cross-chain bridge.
Above are only for introduction, not intended as investment advice.
