GMX: A Decentralized Exchange with Innovative Features and Tokenomics

Tor Pornchai
Tor Pornchai
GMX: A Decentralized Exchange with Innovative Features and Tokenomics

Explore the project, its unique aspects, and the $GMX token benefits

Introduction: GMX, a Decentralized Spot and Perpetual Exchange

GMX is a decentralized exchange that offers spot and perpetual trading of top cryptocurrencies with up to 50x leverage, directly from users' wallets. It operates on two major networks: Arbitrum and Avalanche. In this article, we will discuss the project and its token.

GMX: Low Swap Fees and Zero-Price Impact Trades

One of GMX's key features is its support for low swap fees and zero-price impact trades. This allows traders to trade without worrying about their orders affecting the price of the asset.

Uniqueness 1: Multi-Asset Pool

GMX's unique multi-asset pool enables liquidity providers to earn fees from market making, swap fees, and leverage trading, providing an easy income source for LPs.

Uniqueness 2: Dynamic Pricing

GMX supports dynamic pricing based on an aggregate of prices from leading volume exchanges. This ensures traders get the best price for their trades.

GMX: Impressive Metrics

So far, GMX has achieved a total trading volume of over 125 billion USD and has attracted more than 276k users.

Tokenomics: The $GMX Token

$GMX is the native token of the exchange, with an estimated total supply of 13,250,000 and around 65% currently in circulation. The token's price has been steadily increasing. (as of 22nd April 2023)

Tokenomics: Supply and Governance

The $GMX supply is capped at 13.25 million tokens, with any minting beyond this subject to a 28-day time-lock and a governance vote.

Tokenomics: Current Max Supply Distribution

The current max supply includes:

  • 6M from migrations
  • 2M paired with ETH for liquidity
  • 2M reserved for vesting rewards
  • 2M for the floor price fund
  • 1M for marketing and partnerships
  • 0.25M for contributors over 2 years

Usage: Benefits for $GMX Holders

Holding $GMX grants users access to various benefits, as it serves as both the platform's utility and governance token. Staked GMX receives three types of rewards: escrowed GMX, multiplier points, and ETH/AVAX rewards.

Conclusion: A Promising Decentralized Exchange

GMX is a decentralized exchange that offers an array of benefits to token holders, liquidity providers, and traders. With low fees, zero price impact trades, and dynamic pricing, it stands out as an attractive platform for trading or earning passive income.