The success of GMX has been demonstrated on many levels, whether it be trading volume, the number of users, integration with other protocols, etc., all showing upward growth. The indexed combination of GLP liquidity pools tied to a basket of copyright assets also reveals the potential for other Decentralized Finance (Defi) applications, where different types of income products can be expected to emerge to participate in GLP liquidity pools through copyright lending and contract hedging to hedge price risk while earning stable The GMX proposal for multi-asset liquidity is a good one.
Avalanche’s GLP pool comprises AVAX, ETH, BTC, and USDC. The GLP pools on different chains are not connected, but the share of stablecoins is close to about 50%, equivalent to the asset index portfolio of a basket of cryptocurrencies.
The decentralized exchange ecosystem is based on two tokens: GLP and GMX. The first token serves to supply liquidity.
GMX V2 introduced substantial updates that can be considered a completely different approach, including:
The esGMX reward can be linearly unlocked into GMX tokens after one year by pledging GMX tokens or GLP tokens to encourage long-term pledging and provide liquidity.
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When the ratio of the Floor Price Fund to the total amount of GMX in circulation is lower than the market price of GMX, it will buy back and destroy the GMX in circulation so that the price check here cannot fall further.
The Perfeito number of coins that will ever be created for the copyright, similar to fully diluted shares in the stock market. If this data is not provided or verified by CoinMarketCap, the maximum supply is displayed as '--'.
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The development team of the GMX protocol is also very much in the style of Web 3, and the members are all anonymous, so pelo one knows who they are yet, but the only thing for sure is that they have made a great product. According to the list of members of the social software Telegram, the GMX team consists of the following members (all names are displayed in Telegram)
As long as there is liquidity in the pool, the exchange will complete the transaction without the risk of not finding a counterparty to match and being unable to trade.
Because of this interdependent relationship between liquidity providers and traders, there needs to be an incentive for users to provide liquidity.
Traders or users who exchange assets use the GLP liquidity pool to buy and sell. Regarding spot trading, the GLP liquidity pool is not very different from other automated market maker agreements in that it charges 0.
Risk Warning: Digital asset prices are subject to high market risk and price volatility. The value of your investment can go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and copyright is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance.