GMX is another digital token that has seen significant growth, and one of the reasons is its presence as a DEX built on the Arbitrum network, which is a high-value Layer-2 Ethereum network. In this article, we will summarize what GMX is and why it is interesting. Let’s take a look.
What is GMX?
GMX is a Decentralized Exchange (DEX) that offers both Spot and Perpetual contract trading services. It stands out for its low fees and low spread. Users can also trade with high leverage, up to 50x.
GMX was first launched on the Arbitrum network (ARB) in September 2021, and later expanded to the Avalanche network (AVAX) in early 2022. Both networks can operate together through a bridge system called Synapse.
The asset prices traded on GMX are sourced from leading global exchange platforms, using an Oracle based on Chainlink, which results in low price volatility. As a result, GMX has become one of the leading dApps on Arbitrum.
What is GMX Token?
The GMX token is both a Utility Token and a Governance Token specific to the GMX platform. In addition to granting holders the ability to participate in platform governance through proposal submissions and voting, GMX offers the following benefits:
- Users can stake GMX tokens on the platform. Those who stake their tokens receive a portion of the fees generated from trading activities on the platform by other users.
- Users who stake GMX tokens also receive additional rewards in the form of escrowed GMX (esGMX). This esGMX can be staked again to further enhance rewards or converted back into GMX. Converting esGMX to GMX takes approximately 12 months to prevent a rapid increase in the supply of GMX tokens.
- Long-term stakers of GMX tokens receive compounded rewards to incentivize users to stake GMX for an extended period. This is another mechanism to prevent rapid token inflation.
It’s important to note that GMX tokens have no maximum supply cap, meaning they can inflate. As of September 13, 2023, approximately 9,013,521 GMX tokens are in circulation.
Who is the Creator of GMX?
As of the time of writing, there is no information available regarding the creator of GMX. However, internet users speculate that the primary developer might be a user known as @xdev_10 on Twitter.”
To sum up, GMX is a decentralized exchange platform operating on the Arbitrum and Avalanche networks. It offers support for both Spot and Perpetual contract trading, with leverage available up to 50x. Furthermore, GMX tokens serve as both Utility Tokens and Governance Tokens on the platform. Holders of these tokens gain special privileges and access to various services, including the right to vote on proposals for GMX’s development.
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