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- 1 Global Markets Exchange (GMX) is a permissionless, decentralized perpetual spot and swap exchange.
- 2 GMX exchanges permit users to trade assets on-chain by connecting wallets, offering rewards for staking and liquidity.
- 3 Mitigating impermanent loss, offering zero price impacts, and access to 50x leverage, made GMX stunning in the crypto world.
The buying and selling of cryptocurrencies, bonds, stocks, and financial securities have caught the trend in recent years. To make trading less risky and more gainful, decentralized exchanges (DEX) were introduced to the market. One such dependable and stunning decentralized exchange is GMX, offering zero price impact and swap fees trades. However, crypto traders have a wide variety of exchanges, but GMX is one of the recently added and advanced DEX.
What makes GMX exchange stand out from the rest? Let’s uncover the unique features of GMX and its utility in GMX crypto.
GMX History and Origin
GXM, a DEX focused on perpetual and spot trading, was introduced on the Arbitrum One blockchain and went live in September 2021. Arbitrium is an Ethereum layer-2 network. Before shifting to Arbitrum, the exchange was streaming over the BNB Smart Chain named Gambit Financial, merging four tokens including xGMT, GMT, XVIX, and XLGE.
As an update, the platform expanded its supporting blockchain to Avalanche, a high-speed EVM blockchain aiming to create a unified global financial market. The platform allows users to make spot swaps and trade perpetual futures to provide a better trading experience with zero price impact and low swap fees. Also, GMX uses Chainlink Oracles for dynamic pricing to combine processes from varied high-volume exchanges.
GMX exchange native token is GMX, holding a circulating supply of 9,164,919 GMX and a total supply of 9,530,377 GMX.
The Ups And Downs in The GMX Exchange
The key idea behind the launch of the GMX platform is to minimize impermanent loss for the liquidity provider, using the GMX liquidity model. The platform also allows individuals to interact with the exchange through a self-custodial wallet. Another fact that makes the decentralized exchange ecosystem is its zero price impacts along with offering an easy swapping interface. Earning passive income through staking and liquidity provision makes the platform stand out from the rivalry. Also, traders are permitted to access up to 50x leverage and GMX contract audits mitigated the risk associated with smart contracts.
The decentralized exchange is planned to show green flags in several areas, including liquidity and partnership, trading fees, and data feeds. Despite this, the GMX Liquidity Provider Token (GLP) liquidity pool is the counterparty to traders, allowing trades to exhaust it if they are too profitable. Also, users are exposed to security risks when linking tokens from Ethereum to Arbitrum and vice versa.
How Does GMX Work?
With GMX, the trading of cryptos including Bitcoin (BTC), Ethereum (ETH), and other popular digital assets become attainable. Trading assets on-chain by linking wallets and gaining rewards through liquidity and staking the GMX token offered a stunning position to the GMX exchange in the marketplace. The multi-asset liquidity pool, known as GPL, helped traders carry out trading effortlessly. GLP liquidity pool involves 25% ETH, 20% BTC, 50-55% stablecoins, and 5.10% other altcoins. Minting GLP adds liquidity to users and in exchange, they get 70% of all fees generated on the respective blockchain.
Gratefully, the liquidity pool permits any individuals to become a part of the network as a supply, gaining fees in return. In addition to this, users can do swaps or perpetual contract trading using the provided assets. If you wish to mint a GLP token, you can use any of the index assets and burnt to redeem any index asset. GLP tokens are non-transferable and can be staked automatically, holding a difference between Arbitrum and Avalanche in terms of price, rewards, and index composition.
Buying GMX Token
GMX is a utility and governance token of GMX’s decentralized trading platform. The GMX tokens can be used for voting on proposals, staking, or a GMX perpetual swap. GMX governance token can be purchased at your fingertips. So let’s crack the process without any delay.
Creating an account or logging into the already existing account on the cryptocurrency exchange is the initial phase of the buying process. One thing to contemplate here is the concurrence of the cryptocurrency exchange with the respective token along with the suitability of other elements like transaction fees. Binance, Bithumb, KuCoin, Kraken, HTX, Avalanche, and Arbitrum are some options you can explore.
Completing the formalities for account verification, and linking the bank account for fund transfer. You can use options like bank transfer, debit/credit card, or other payment methods you wish to choose. Searching for the respective coin in the exchange and making a final buy is the last associated action. You can transfer the GMX coins into supporting wallets such as Coinhub, OKX wallet, TokenPocket wallet, Trezor wallet, MetaMask, and Ledger Nano X.
Conclusion
GMX, a decentralized exchange, made trading, staking, and swapping more efficient for users through a multi-asset liquidity pool concept. The exchange’s utility token can be used for voting on proposals, staking, or perpetual swap and is available at crypto exchanges. The exchange is continuously updating with more room to run.
FAQs
What is GMX, and why is it gaining attention in the cryptocurrency world?
GMX is a decentralized crypto exchange emphasizing perpetual markets. The platform offers a liquid decentralized perpetual exchange, permitting users to trade without intermediaries.
How is GMX secured on the Arbitrum and Avalanche blockchains?
GMX, one of the new generation crypto perpetual exchanges, leverages Avalanche and Arbitrium for the complex liquidity system, to make the network more secure.
How does GMX’s trading model differ from traditional centralized exchanges?
The entire working of GMX depends on a decentralized spot and perpetual contract trading platform, supporting minimal swap fees and zero price impacts. The exchange provides more control to the users.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
