GMX Surpasses $60 Billion in Total Trading Volume with 100,000 Active Users

GMX has emerged as a prominent decentralized perpetual contract trading platform since its launch in September 2021. Originally known as Gambit, GMX rebranded and expanded its offerings, leveraging blockchain networks such as Arbitrum and Avalanche to provide high-throughput and optimized trading experiences. The platform distinguishes itself through a decentralized, community-owned liquidity pool known as GLP, which serves both spot and perpetual contract trading functions [1].

Perpetual contracts, a variant of futures contracts, allow traders to take leveraged long or short positions on digital assets without an expiration date, contrasting traditional futures that require a defined settlement time [1]. GMX’s perpetual contract feature supports up to 30X leverage, enabling traders to amplify their positions using collateral borrowed from the GLP pool. This leverage model allows users to control large positions with relatively small amounts of capital, though it also increases risk [1].

The GLP pool operates as a multi-purpose liquidity mechanism, allowing users to deposit assets and receive GLP tokens in return. These tokens represent a share in the pool and provide holders with staking rewards and a portion of trading fees. The platform’s design ensures that GLP returns fluctuate based on trader activity—shrinking during profitable trading and growing during losses or increased trading volume [1]. GMX also integrates Chainlink’s decentralized oracle network to ensure accurate and reliable price feeds for both spot and perpetual contracts, minimizing the risk of erroneous liquidation events [1].

GMX employs a dual-token system, with GMX and GLP tokens serving as the native governance and liquidity provider tokens, respectively. GMX token holders can participate in governance decisions and earn staking rewards, including ETH or AVAX, esGMX, and multiplier points. The GMX token has a fixed maximum supply of 13,250,000, with a portion allocated to early participants, the Floor Price Fund, and marketing efforts. GLP token holders receive a share of the trading fees and additional staking rewards, incentivizing continued liquidity provision [1].

Trading on GMX is facilitated through a user-friendly interface accessible via the GMX website. Users connect their wallets to the platform and can choose between Arbitrum or Avalanche networks to execute trades or perform token swaps. The perpetual contract trading process involves selecting a trading pair, setting leverage, and specifying collateral, with options for stop-loss and take-profit orders to manage risk [1].

With over $60 billion in total trading volume and nearly 100,000 active users, GMX has rapidly gained traction in the decentralized derivatives market. The platform’s ability to provide seamless, leveraged trading, combined with its community-driven liquidity model, has positioned it as a strong contender in the growing decentralized finance (DeFi) ecosystem. However, as with all leveraged trading platforms, users must exercise caution and understand the risks involved [1].

Source: [1] What Is GMX? Guide To The Decentralized Perpetual Exchange (https://www.coingecko.com/learn/what-is-gmx-guide-to-the-decentralized-perpetual-exchange)