What is GMX (GMX)?

Deep Dive

1. Purpose & Value Proposition

GMX solves centralized exchange risks (custody, opaque pricing) by offering non-custodial trading with transparent, oracle-based pricing. It allows users to trade perpetual futures (long/short positions) and swaps directly from wallets, bypassing intermediaries. Liquidity providers earn fees from trading activity, while traders benefit from low slippage.

2. Technology & Architecture

GMX uses Chainlink Data Streams for real-time price feeds, avoiding order books. Trades are routed against GM Pools, which hold assets like BTC, ETH, and stablecoins. Its V2 architecture (launched in 2023) introduced cross-chain functionality via LayerZero, enabling seamless trading across EVM chains like Arbitrum, Avalanche, and Base.

3. Tokenomics & Governance

• $GMX: Stakers earn 30% of platform fees (ETH/AVAX) and govern protocol upgrades.
• $GLP: A liquidity pool share representing a basket of assets; holders earn 70% of fees.
  The model incentivizes long-term participation, with no inflationary token emissions (GMX Docs).

Conclusion

GMX combines decentralized trading, cross-chain liquidity, and sustainable yield mechanics to redefine derivatives markets. As DeFi evolves, can GMX maintain its edge against centralized rivals and newer DEXs?