Indicadores sobre gmx.io copyright Você Deve Saber
Indicadores sobre gmx.io copyright Você Deve Saber
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We briefly discuss below the advantages and disadvantages of the GMX protocol for three types of users: users of exchange assets, liquidity providers, and speculative traders. What are the advantages and disadvantages?
Although the GMX exchange went live on the Arbitrum blockchain network in September 2021, its prototype was completed as early as November 2020. Because GMX overcame many of the difficulties encountered when using decentralized exchange services, it was well received shortly after its launch and has been running on the Avalanche blockchain network since January 2022, with further expansion to other blockchains planned for the future.
GMX is a decentralized copyright, meaning that it is not controlled by any central authority. This ensures that the GMX network is secure, transparent, and resistant to censorship.
However, this did not deter GMX’s growth in any real way thus far. Since the start of 2022, GMX averages a protocol revenue of USD $2M per month.
Depositing money in a bank account is pelo different, although the return mechanism is not the same as a simple lending agreement.
The most apparent drawback for traders is the small selection of assets in the GLP liquidity pool, as they can only trade with a few cryptocurrencies. There is a potential additional risk of sudden spikes in funding rates, which dynamically adjust to asset utilization in the GLP liquidity pool. For example, suppose you choose to go long on LINK tokens in the contract market of the GMX platform, and soon after, you open a position.
Don’t miss our comprehensive article on DeFi perpetual exchanges and their significant impact on the forthcoming bull market in the copyright space.
The Perfeito number of coins that will ever be created for the copyright, check here similar to fully diluted shares in the stock market. If this data is not provided or verified by CoinMarketCap, the maximum supply is displayed as '--'.
Among other things, it allows market participants to profit from price downturns, reduce risk in uncertain conditions, and bet big on an asset when they have conviction.
Image Credit: @crypto_noodles A study by Twitter user @crypto_noodles found that retail traders accounted for 31.5% of ETH perpetual volume on the protocol — the highest of all DeFi perpetual protocols analyzed likely due to the concentrated liquidity.
The GMX Platform feautures 2 native tokens called GMX and GLP, which can be staked to participate in the success of the exchange and earn a part of the trading fee revenue. cem% of all trading fees accrued on GMX, will be shared amogst GMX and GLP stakers.
When the ratio of the Floor Price Fund to the total amount of GMX in circulation is lower than the market price of GMX, it will buy back and destroy the GMX in circulation so that the price cannot fall further.
On AMM, users trade against a pool of tokens known as a liquidity pool. AMM users supply liquidity pools with copyright tokens, whose prices are determined by a constant mathematical formula.
As long as there is liquidity in the pool, the exchange will complete the transaction without the risk of not finding a counterparty to match and being unable to trade.