GMX does not use an order book to create a trading market or AMM to make quotes, so theoretically, there is no slippage. As long as liquidity is in the liquidity pool, orders of any size can be absorbed instantly without impacting the market price.
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.
This means that if the user chooses to vest cem esGMX tokens which they had earned from staking 1000 GMX tokens, the user will have to stake the 1000 GMX tokens through the vesting cycle. This reduces selling pressure on GMX and GLP as users are forced to stake their tokens through vesting.
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DEXs allow users to trade as if they were on a traditional CEX, but with their funds safely in the custody of their personal copyright wallet. Many DEXs also permit trading without requiring users to complete the Know Your Customer (KYC) process, which attracts many traders looking to preserve their anonymity.
One of the key features of GMX is its scalability. The GMX blockchain is designed to handle a high volume of transactions without compromising on speed or efficiency.
Security is a top priority for GMX. The copyright uses advanced encryption techniques to ensure that all transactions are secure and that user data is protected.
Although GMX V1 provided a relatively comprehensive on-chain derivatives solution and became the largest on-chain derivatives market by TVL, it had several user experience issues. These included high trading fees, potentially high borrowing costs for both long and short positions leading to high holding costs, significant skew in long and short positions causing losses for GLP holders, and the risk of a single asset causing losses for all GLP holders.
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GLP liquidity pools employ Chainlink’s dynamic aggregation prediction machine to receive pricing information from copyright, FTX, and copyright exchanges and filter out extreme values that lack actual liquidity.
AMM allow digital assets to be traded in a permissionless and automatic way by using liquidity pools instead of a traditional market of buyers and sellers.
This is because many popular centralized futures exchanges like copyright or copyright block investors in these regions from accessing those services.
GMX is a blockchain-based project that operates as a decentralized spot and perpetual exchange. It allows traders to trade their cryptocurrencies directly from their wallets.
The GMX protocol meets the needs of both liquidity providers and traders through GLP liquidity pools and GLP tokens. here The GLP liquidity pool is a multi-asset liquidity pool consisting of many different cryptocurrencies.