GMX

GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades. It operates on the Arbitrum and Avalanche blockchains. GMX is unique because users can trade with up to 50x leverage directly from their wallet against a unique multi-asset liquidity pool (GLP).

Liquidity providers can deposit assets into the GLP pool to earn a significant share of the platform's trading fees. GMX has become a flagship protocol in DeFi, known for its "Real Yield" model where fees are paid in ETH or AVAX, not just inflationary tokens. It is a legitimate, community-governed trading platform.

Frequently Asked Questions

1. How do I earn yield?

You can buy and stake the GLP token (which represents a basket of assets like BTC, ETH, and USDC). GLP holders earn 70% of the platform's trading fees, paid out in ETH (on Arbitrum) or AVAX (on Avalanche).

2. What is the GMX token?

GMX is the utility and governance token. Staking GMX earns you 30% of the platform's fees, plus "Escrowed GMX" (esGMX) rewards. It allows you to participate in the long-term success of the protocol.

3. Is there slippage?

GMX executes trades against the GLP pool using Oracle pricing (Chainlink), which allows for zero price impact trades. This means you can execute large orders without the price moving against you during the trade.

4. Is it risky?

Yes, DeFi carries risks including smart contract bugs. Additionally, providing liquidity via GLP acts as the counterparty to traders; if traders on the platform win big collectively, the value of the GLP pool can decrease (though statistically, the house wins over time).

5. Do I need KYC?

No, GMX is a decentralized application. There is no sign-up process, email requirement, or identity verification. You simply connect your non-custodial wallet to the app to start trading or earning.