Kriptoks

GMX, a decentralized exchange (DEX), offers a unique platform for trading perpetual cryptocurrency futures with leverage on popular cryptocurrencies such as BTC and ETH. Launched in September 2021 as Gambit Exchange, GMX has quickly emerged as a leading derivatives DEX on Arbitrum and Avalanche, boasting a total trading volume of over $130B and a user base of 283K.

Operating on the Arbitrum and Avalanche blockchains, GMX leverages the power of Synapse, a cross-chain bridge that connects these ecosystems to the exchange seamlessly.

What sets GMX apart from other exchanges is its departure from the traditional order book model used by centralized exchanges (CEXs). Instead, it adopts an innovative approach known as the automated market model (AMM), commonly employed by decentralized exchanges (DEXs) like Uniswap. GMX features a native multi-asset pool called GLP, which serves as a revenue generator for liquidity providers.

The GLP pool functions as a multi-asset liquidity pool, encompassing assets such as ETH, BTC, LINK, UNI, USDC, USDT, DAI, and FRAX (as of the time of writing). The market prices on GMX rely on Chainlink's oracles, which aggregate token price data from top exchanges.

GMX operates through two tokens: GLP and GMX. GLP plays a crucial role in providing liquidity, and its price represents the value of all GMX assets available for trading, including leveraged positions and swaps. Essentially, GLP serves as an index of the entire exchange's asset portfolio. On the other hand, GMX serves as the utility and governance token.

Users can contribute liquidity to the exchange by minting GLP tokens. In return, they receive 70% of the fees generated on the corresponding blockchain. Notably, unlike some liquidity pools, GLP does not suffer from impermanent loss. Moreover, the GLP pool acts as a counterparty for traders engaging in leveraged trading. When GLP token holders supply liquidity, they stand to profit from traders' losses, creating a symbiotic relationship within the ecosystem.

As of now, the circulating supply of GMX tokens exceeds 8.7M, with an expected maximum supply of 13.25M GMX tokens. The token distribution follows a structured allocation plan, with 6M GMX allocated for XVIX and Gambit migration, 2M GMX paired with ETH for Uniswap liquidity, 2M GMX set aside for vesting from Escrowed GMX rewards, 2M GMX tokens assigned to the floor price fund, 1M GMX tokens designated for marketing, collaborations, and community developers, and 250K GMX tokens distributed to the team linearly over a 2-year period.

To ensure the security of the GMX network, the platform operates on the Arbitrum and Avalanche blockchains. Arbitrum, a layer-2 blockchain, derives its security from the Ethereum network, benefiting from Ethereum's consensus and finality mechanisms. This setup guarantees the validity of off-chain computations and the availability of data supporting those computations.

On the Avalanche blockchain, the consensus mechanism differs from traditional proof-of-work or proof-of-stake approaches. Instead, Avalanche employs a directed acyclic graph (DAG) protocol where all nodes simultaneously process and validate transactions. Validators randomly poll transactions to ensure correctness with statistical certainty. This consensus mechanism allows for immediate finalization of transactions and significantly enhances the speed of the blockchain.

In terms of security audits, GMX contracts undergo rigorous assessments by ABDK Consulting, and the platform maintains an active bug bounty program through Immunefi to incentivize the discovery of potential vulnerabilities.

In summary, GMX stands out as a decentralized exchange (DEX) offering leveraged trading of perpetual cryptocurrency futures. Operating on the Arbitrum and Avalanche blockchains, GMX implements an innovative automated market model (AMM) and features a multi-asset liquidity pool (GLP) that rewards liquidity providers. With its unique tokenomics and commitment to security, GMX has garnered a significant user base and trading volume, solidifying its position as a leading derivatives DEX in the crypto landscape.