GMX boasts several features that differentiate it from other decentralized exchanges, such as low swap fees, zero price impact trades, and Chainlink Oracles integration.
When the market kicks off again, we are destined to see a massive influx of retail traders which will lead to a gargantuan increase in volume. This will translate to a surge in $GMX and rewards paid out to liquidity providers on the platform.
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Liquidity providers want high returns, and GMX opens the way to make this possible. As long as the market traders lose money, returns will increase. Liquidity providers do not want to take the risk of loss, GMX uses statistics to show that short-term losses will occur, but long-term profits are the inevitable result.
Another drawback for DeFi futures is that the majority of the exotic pairs usually have very low volume and liquidity.
But are the traders winning, or are the liquidity providers at GLP making money? Long-term performance data gives us the answer. In the case of Arbitrum, the most heavily traded market, as of October 2022, users of GMX for perpetual contract trading had accumulated losses of over $45 million.
By carefully considering these insights, investors can better position themselves to capitalize on the opportunities presented by the GMX exchange during the next copyright bull run.
The Innovation Zone is a dedicated trading zone where users are able to trade new, innovative tokens that are likely to have higher volatility and pose a higher risk than other tokens.
GMX users can “long” or “short” up to 30 times the size of their collateral by borrowing funds from a large liquidity pool.
GMX is powered by Chainlink Oracles. It uses an aggregate price feed from leading volume exchanges to reduce liquidation risk from temporary wicks.
AMM allow check here digital assets to be traded in a permissionless and automatic way by using liquidity pools instead of a traditional market of buyers and sellers.
So why would traders still want to use the GMX protocol for trading? Because the market depth of GMX is excellent, and there are no slippage problems. Because the profit of trading is from the spread trading, using the order book trading or AMM liquidity pool trading will be due to a large amount of buying or selling to increase costs or reduce profits, but through the GLP liquidity pool to open.
GMX is a blockchain-based project that operates as a decentralized spot and perpetual exchange. It allows traders to trade their cryptocurrencies directly from their wallets.
The fast completion and zero price shock nature of GMX exchange assets make it ideal for high-volume OTC transactions. Still, the downside is that the GLP liquidity pool has a small selection of assets, which limits its potential for non-popular, long-tail assets.