One of the most successful projects in cryptocurrency right now is GMX. It is a swap and spot exchange that goes on forever and doesn’t need permission.
Traders can use the platform to make fast transactions on-chain if they connect their wallets to it. The GMX token is part of the whole GMX system.
This token is used, among other things, for governance, utility, and building up value. More Start Your Trading Journey Today and Use Bitcoin Clever!
Users can stake their GMX tokens to get extra benefits and a cut of the money GMX makes from the protocol fees it charges. The Arbitrum and Avalanche networks can be helped by the telecommunications company GMX.
What does it stand for?
GMX is a decentralized spot and perpetual exchange where you can trade significant cryptocurrencies from your wallet with up to 30x leverage.
You will pay low swap fees, and your trades won’t affect the cryptocurrency’s price. GMX wants its customers to enjoy trading more by offering transactions that don’t change costs and low exchange fees.
Trading happens through a local multi-asset pool called GLP. This pool pays the fees of liquidity providers.
GMX also uses chainlink Oracles to get prices from other high-volume exchanges. This lets the company offer prices that change over time.
In September 2021, when the Arbitrum One blockchain went live for the first time, GMX was shown for the first time to the public.
Arbitrum is a technology that was made to help Ethereum smart contracts grow faster. It is a layer-2 rollup for Ethereum. In January 2022, GMX kept working on Avalanche, a fast blockchain that works with EVM.
GMX and how it works
GLP is a group of assets that makes trading on GMX easier. It comprises fifty and fifty-five percent stablecoins, twenty-five percent Bitcoin, and ten percent other cryptocurrencies like Chainlink and Uniswap.
Any index asset can be used to make GLP tokens, which can then be burned and traded for any index asset. It can’t be moved as the GMX token can, and it has to be staked as soon as it’s made.
The Arbitrum and Avalanche chains from GLP have different ways of setting prices, giving incentives, and making indexes.
What Makes GMX Unique?
Traders can open leveraged positions on GMX by using a swap interface that is easy to use and looks like the ones on other trading platforms. Also, GMX is self-custodial and trustless, which means anyone can trade cryptocurrencies from their wallet.
It has a two-exchange system that can handle both leveraged tradings of perpetual swaps and trading of spot swaps. Since this is the case, the GLP pool’s high asset utilization should mean capital is used better. This means that user deposits can bring in more money and aren’t just sitting there.
GMX lets traders enter and leave trades without changing the price on the market. Traders might get better entry prices this way than on some order book-based exchanges, where slippage can be a problem.
GMX also uses a mix of Chainlink Oracles and other fee feeds to keep prices from going up and down too much. This keeps liquidation wicks from temporarily wiping out holdings.
The GMX ecosystem puts a lot of value on communities and tries to teach its users the DeFi way of thinking, which involves being active and making new tools.
The community has made tools for traders, stalkers, and liquidity providers, such as a Telegram positions bot, the gmx. House leaderboard, the gmxstats.com website, Dune Analytics Dashboards, and calculators.
On GMX’s list of ongoing projects are collaborations that use Lego-like pieces that can be put together in different ways to develop DeFi capabilities.
Community members are also responsible for spreading the word about the GMX ecosystem. One publication that talks about what’s new in the GMX ecosystem is the Blueberry Pulse, a weekly newsletter put together by the community. The Blueberry Podcast does the same thing, but it’s in an audio format.
How to use the GMX
Trading
The GMX trading interface and the price chart are both shown at the same time. Choose “Long” or “Short” from the drop-down menu to start a trade with leverage.
Spot swaps are also possible on GMX. They are easy and don’t cost much. Click on the “Swap” tab to open the interface that lets you switch between the tokens in the GLP pool.
The token on top is the security you put up, and the token below it is the thing you give up in exchange. The leverage slider lets you choose how much money you want to borrow from the GLP pool. You can also place limit orders and take profit and stop loss orders.
Deals that are still open will be shown under “Positions.” If you click “Edit,” you can put down or get back your collateral.
When you open and close a leveraged trade, you will have to pay a fee equal to 0.1% of the amount of your position.
Traders also have to pay an hourly price that depends on how much money they use. Visit their website to find out more and get specific instructions on how to trade with them.
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