Overview
What Is GMX?
GMX is a decentralized spot and futures crypto exchange that offers 100x leverage trading, multiple trading pairs, high liquidity, and fee profit sharing. The platform is available on the Arbitrum and Avalanche network, which offer low gas fees.
It offers identical trading features to a centralized exchange, but it's fully trustless and decentralized. All you need is a wallet to start trading as there are no KYC or sign up requirements. GMX launched in 2021 and has since generated more than $2.16B in trading volume. The platform has 200,000 active users and in the last 24H, a volume of $164.52M.
Why Is GMX Getting Popular?
GMX blew up for many reasons including its profit-sharing program, multi-chain support (Arbitrum/Avalanche), and deep liquidity. Decentralized exchanges are also growing as a whole after millions of investors have lost trust in centralized platforms like FTX.
As of this writing, GMX represents close to 50% of the total TVL of Arbitrum and it supports Avalanche as well. It's catering to two growing DeFi communities and a liquidity base of hundreds of millions of dollars that is spread across these networks. Additionally, profit-sharing makes it stand out as very few platforms actually share revenue with their users. GMX accumulates millions of dollars in trading fees each week and distributes the vast majority to stakers.
Key Features
Other Features
The GMX Token
GMX is the official governance and fee-sharing rewards token for the GMX ecosystem. GMX was launched in September 2021 on Arbitrum One and is also available on the Avalanche C-Chain.
- Network: Arbitrum/Avalanche C-Chain
- Utility: DAO governance/rewards
- Circulating Supply: 8.3 million
- Maximum Supply: 13.25 million
The circulating supply is 8.3 million out of a maximum 13.25 million tokens. Minting above the maximum supply could only occur with a majority vote on the DAO. Using GMX Earn, users can stake their GMX tokens to earn an APY up to 12% or provide liquidity in the form of GLP tokens for up to 20% APY. Staked tokens are escrowed for 1 year before rewards are paid out.
Where Do You Buy GMX?
GMX created an official “Buy” directory that you can check out. The GMX token can be purchases on centralized exchanges like:
It's also available on decentralized exchanges:
- Uniswap (Arbitrum Contract: 0xfc5A1A6EB076a2C7aD06eD22C90d7E710E35ad0a)
- Trader Joe’s (C-Chain Contract: 0x62edc0692BD897D2295872a9FFCac5425011c661)
This videos walks you through how to safely buy the GMX token in different ways:
What Does Reddit Think About GMX?
We headed to Reddit to see what users were saying about GMX's features and their experience with the DEX. Here are what some users commented:
What Does Twitter Think About GMX?
However, not all the comments online are positive. In a recent Twitter thread, user @ImNotTheWolf complained about the high fees on the platform when traders are at a small profit:
"Only on $GMX can you be +4.39% in profit, and still be in a -9.55% net loss due to outrageous fees."
User @CoinSurveyor stated that he chose the ApeX trading platform for (in his opinion) the better designed UI and the lower maker/taker fees.
The Bottom Line
GMX is becoming a popular DEX for leverage traders. It's the largest DEX on Arbitrum, has higher leverage than competitors (50x), and distributes its trading fee revenue to users. On the downside, it has 0.06% trading fees (higher than ApeX, Hyperliquid, etc), and limited trading pairs.
