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GMX.io

GMX

2021

Founded 

?

HQ

Last Updated Jan 20, 2024  |  Affiliate Disclosure

  • Review

Overview

  • GMX is one of the largest decentralized exchanges on the Arbitrum and Avalanche network. It offers perpetual contracts with up to 50x leverage.
  • It has six trading pairs so far: ETH/USD, BTC/USD, LINK/USD, AVAX/USD, UNI/USD, and WBTC/USD; making it limited compared to other DEXs that offer a larger selection of trading pairs.
  • The GMX trading fee is 0.1% of the position size + 0.2%-0.8% of the collateral size for leverage trading. Trades also incur network gas fees on their respective networks.

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 launched in 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 blew 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.

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

GMX Website

GMX is the most active trading platform on Arbitrum

  • Spot & Leverage Trading Up To 50x: GMX has 6 trading pairs currently along with deep liquidity and deposits as little as $10.
  • Decentralized Trading: GMX is permissionless so anyone in the world with a crypto wallet can start trading. No KYC or sign up process is required and it's non-custodial meaning you control your funds at all times.
  • Profit-Sharing & Staking: GMX is one of the few DEXs that distributes fees back to users. It accumulates millions of dollars in trading fees each week and distributes the vast majority to stakers. By staking GMX and GLP (liquidity) tokens you can get up to 12% APY and up to 20% APY, respectively.
  • GMX DAO: Users can vote on proposals in the GMX DAO (Decentralized Autonomous Organization).

Other Features

  • Price feeds provided by Chainlink, a decentralized oracle network. Prices are based on the underlying market and not the orderbook.
  • Stablecoin withdrawal options with USDC, USDT, DAI, and FRAX.
  • Multi-chain Support: GMX supports Arbitrum and Avalanche (layer 2's) which have lower fees than Ethereum.

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.

Header

GMX

APEX

DYDX

Networks

Arbitrum, Avalanche

Ethereum, BSC, Polygon, Arbitrum

Starkware

Token

$GMX

$APEX

$DYDX

Leverage Limit

50x

50x

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.

GMX 1 - Connect Wallet
GMX 1 - Connect Wallet 2

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.

Add Arbitrum

This will be followed by a notification from MetaMask or your wallet asking to approve it.

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:

  1. You can use the Arbitrum Bridge or Avalanche Bridge
  2. 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. 

Sign up for KuCoin Here

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.

Enter Your Referral Code Here

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:

  • "It's the only one I use. If devs continue to ship and deliver, the meme narrative of GMX becoming the decentralized FTX will come true."
  • "This is not your typical defi ponzi tokenomics, this is revenue from usage being sent back to governance holders just like defi should be. GMX token holders are the bank and this model will be copied by others in the future."
  • "Like a lot of people, I'm a big fan of GMX for a a multitude of reasons including it's organic growth and sustainable rewards/tokenomics model. But beyond it's yield offering, I've been particularly impressed with the ability to open/close perps trades on GMX with effectively zero price impact regardless of size."

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), and limited trading pairs.

Pros & Cons

  • Spot & Leverage Trading: Trade up to 50x with deep liquidity, minimal collateral and deposits as little as $10.
  • Decentralized Trading: No sign up process. All you need is a Web3 wallet to trade and you will stay in control of your funds at all times.
  • Profit-Sharing & Staking: One of the few DEXs that distributes fees back to users.
  • Built on Arbitrum and Avalanche: You will get significantly lower gas fees than Ethereum.
  • Only 6 Trading Pairs Currently: (BTC, ETH, AVAX, UNI, LINK, WBTC) while other DEXs offer dozens of pairs.
  • High Trading Fees: You'll pay 0.1% of the total position size + 0.2% to 0.8% of collateral (for leverage trading) + network execution fees.
  • APY for GMX staking is escrowed to 1 year or users receive no rewards.
  • Arbitrum users have to wait 7 days to bridge earnings back to ETH mainnet using the Arbi bridge (unless third-party exchanges are used).

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.

More GMX Resources

Author

At RankFi.com, our goal is to be your trusted source for crypto reviews, guides and research. We seek out researchers with extensive crypto knowledge and firsthand experience using dozens of CeFi and DeFi platforms.



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