30% of the fees collected from swaps and leverage trading conducted on the platform are converted to either ETH or AVAX and distributed to GMX stakers.
When a user opens a trade or deposits collateral, GMX takes a snapshot of its dollar value. The value of the collateral does not change throughout the trade even if the price of the underlying asset does.
This helps to ensure that referrers receive the rebates for the users they brought onto the platform. Here is the link to apply for the referral program.
According to the GMX.io Official Documentation, the forecasted maximum supply is 13.25 million GMX tokens. GMX.io team can also increase its maximum supply. But the GMX.io team will only use this option if more products are launched and liquidity mining is required.
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, pelo borrowing fees, and additional funding fee income.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
On the surface, the GMX protocol fulfills the wishes of almost all liquidity providers: long-term, stable, low-risk, high-yielding gold flows. But the truth is less rosy than it seems because GLP liquidity pools are more than just deposits and lending like banks. Their excess returns well above the general market interest come from traders’ forfeited margin, and the increased risk taken is traders’ profit.
This reduces the price volatility of GMX and provides a stable source of income for pledgers. Users who stake GMX tokens also receive Multiplier Points, which boost the user’s share of get more info GLP liquidity pool proceeds by a certain percentage.
The amount of rewards that users can get, depends on the number of GMX staked and the fee revenue generated on the GMX copyright Exchange. Based on historical data, the estimated annual GMX yield ranges from 15–30%.
The development team of the GMX protocol is also very much in the style of Web 3, and the members are all anonymous, so no one knows who they are yet, but the only thing for sure is that they have made a great product. According to the list of members of the social software Telegram, the GMX team consists of the following members (all names are displayed in Telegram)
GLP’s price is contingent on the price of its underlying assets, as well as the exposure GMX users have toward the market. Most notably, GLP suffers when GMX traders short the market and the price of pool assets also decreases.
This is because many popular centralized futures exchanges like copyright or copyright block investors in these regions from accessing those services.
The demand for privacy-focused trading solutions has led to the rise of no-KYC platforms, which provide a vital alternative for those seeking to maintain anonymity while trading futures contracts.
GMX innovatively redefines liquidity pools, allowing users to exchange assets at a low cost and without price slippage, even for large transactions. For liquidity providers, GLP liquidity pools are not plagued by impermanent losses. They can add and redeem liquidity with a single asset and earn various revenues, such as transaction fees, funding rates, and liquidation fees.