Sobre copyright gmx
Sobre copyright gmx
Blog Article
Introducing price impact, giving trades that promote balance better pricing and imposing negative price impact on trades that increase imbalance.
This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.
With support for low swap fees and zero price impact trades, GMX quickly gained traction among traders seeking an edge in the competitive copyright market.
Users can add liquidity by minting GLP, and in return, they receive 70% of all fees generated on the corresponding blockchain. Unlike some liquidity pools, GLP experiences no impermanent loss.
This result is not surprising; a simple search on the Internet shows that more than 90% of traders are losing money. Even with a 50% chance of being right and a 50% chance of being wrong, the expectation of profit for traders on GMX is still negative, as each trade is burdened with fees for opening and closing positions and capital costs for maintaining them.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
On the surface, the GMX protocol fulfills the wishes of almost all liquidity providers: long-term, stable, low-risk, high-yielding gold flows. But the truth is less rosy than it seems because GLP liquidity pools are more than just deposits and lending like banks. Their excess returns well above the general market interest come from traders’ forfeited margin, and the increased risk taken is traders’ profit.
Unlike most DEXs which use multiple single-asset pools, GMX utilizes a single multi-asset pool to facilitate all of their trades. This multi-asset pool is known as GLP and consists of several large cap tokens and stablecoins.
Among other things, it allows market participants to profit from price downturns, reduce risk in uncertain conditions, and bet big on an asset when they have conviction.
The founder details of GMX are read more not prominently disclosed, aligning with the decentralized ethos of the platform which focuses more on collective governance and community-driven development.
This advantage is even more pronounced when large transactions are needed and decentralized exchanges such as 1inch have integrated GLP. Other decentralized exchanges, such as 1inch, also integrate liquidity from GLP liquidity pools. Yield YAK offers income products supporting GLP and GMX, and the profits earned are automatically reinvested.
In contrast to traditional decentralized exchanges which use order books, GMX employs a different type of automated market maker (AMM) system. This system is backed by its native liquidity pool, GLP, which also serves to stabilize pricing through its integration with Chainlink oracles.
This is a major leap forward, as it enables the creation of markets without the need for governance approval, thus streamlining the trading process.
Many decentralized exchange aggregation protocols also favor the zero transaction spread of the GMX protocol. Yield YAK, a revenue aggregation protocol on the Avalanche blockchain network, has more than 35% of its trading volume done through the GLP liquidity pool.