Overview
What Is GMX?
GMX is a decentralized spot and futures crypto exchange that offers 50x 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 was initially launched in September 2021 and has since generated more than $90 billion in trading volume. The platform has 200,000 active users and a TVL of $583 million according to Defi Llama.
Why Is GMX Getting Popular?
GMX is blowing up for many reasons including its profit-sharing program, high leverage support (up to 50x), 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.
GMX represents nearly 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
GMX is the most active trading platform on Arbitrum
Other Features
GMX vs. APEX vs. dYdX
Many perpetual DEXs exist and many new ones are popping up. Popular GMX alternatives include dYdX, ApeX, MUX, and many more. While GMX is one of the largest DEXs for derivatives, it has drawbacks like limited tokens and higher fees. Here's how GMX compares to some of its competitors:
Header | GMX | APEX | DYDX |
|---|---|---|---|
Networks | Arbitrum, Avalanche | Ethereum, BSC, Polygon, Arbitrum | Starkware |
Token | $GMX | $APEX | $DYDX |
Leverage Limit | 50x | 30x | 20x |
Trading Fee | 0.10% | 0.02%-0.05% maker/taker | 0.02%-0.05% |
Profit Sharing | Yes | No | No |
Tokens | 6 | 15+ | 30+ |
Price Feeds | Chainlink | AMM | Orderbook |
Platforms | Desktop | Desktop + program + iOS/Android | Desktop + iOS/Android |
Website |
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 (for educational purposes):
How To Use GMX Exchange?
GMX works similar to a centralized exchange however, since it's decentralized, there is no registration process. You can start trading in seconds because all you need is a crypto wallet.
Connect Your Wallet to GMX
Once you have a wallet like MetaMask or Coinbase Wallet setup, go to GMX.io and click "connect wallet" in the top right corner.
Add Arbitrum or Avalanche Network
To use GMX, you will need to have either the Arbitrum or Avalanche Network added to your wallet. If you don't have it already, you can click the pop-up in the bottom right corner and GMX will automatically add it for you.
This will be followed by a notification from MetaMask or your wallet asking to approve it.
Transfer Tokens To Your Arbitrum Or Avalanche Wallet
If it's your first time using Arbitrum or Avalanche, you will need to add funds to your wallet.
If you use Arbitrum, you will need some ETH on Arbitrum for transaction fees. If you use Avalanche, you will need some AVAX for transaction fees. To get Ethereum or tokens from other chains you have two choices:
- You can use the Arbitrum Bridge or Avalanche Bridge
- You can withdraw crypto from KuCoin or a centralized exchange via these networks to your wallet
If you don't have a KuCoin account yet, you can sign up with this link to get 10% off plus up to a $500 welcome bonus. KuCoin is one of the largest crypto exchanges in the world based on trading volume and it's available in 200+ countries.
Start Trading
Now that your wallet is connected and funded, you can use GMX to swap tokens, long or short various cryptos with up to 50x leverage, and more.
Whether you're new to GMX or have already made trades, you can enter code "RankFi" on the referrals page to get a 5%-10% discount on your trading fees.
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 0.10% trading fees (higher than ApEX, dYdX, etc), limited trading pairs, and an anonymous team.
Pros & Cons
FAQ
Who Is Behind GMX?
The team behind GMX is fully anonymous and not doxxed. Despite that, the token received the backing of the largest exchanges including Binance and passed audits. Official audits were published on GitHub.
How Does GMX Make Money?
GMX makes money from trading fees and token appreciation.
Is GMX On Arbitrum or Avalanche?
GMX offers services on both Arbitrum and Avalanche. Users can trade using Arbitrum ETH or AVAX on C-Chain.
Is GMX An Ethereum DAPP?
GMX is a multi-chain DAPP built on Arbitrum and Avalanche. Arbitrum stores Ethereum transactions off-chain and then merges them on-chain in large batches to save on gas fees. Avalanche trading works on C-Chain.
Will GMX Users Get The Arbitrum Airdrop?
If Arbitrum airdrops their token to users in the future, GMX users will likely be eligible for the airdrop as they have to deposit ETH through the Arbitrum Bridge and interact with the DAPP.
