The fund grows thanks to fees accrued through the GMX/ETH liquidity pair; it’s also supported by OlympusDAO bonds.
GMX also supports perpetual contract trading with up to 30x leverage, zero spreads, and aggregated oracle quotes to help traders reduce liquidation risk, more accurately control positions, and predict gains and losses.
Users can deposit their copyright into the GLP pool to become liquidity providers and receive credentials for GLP tokens. Users staking GLP tokens can receive transition fees, funding fees, and liquidation fees, which fees will directly convert to the native assets of that blockchain network.
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.
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.
However, GLP holders stand to profit when GMX traders go short and prices rise, GMX traders go long and prices decrease, and GMX traders go long and prices rise.
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 cannot fall further.
GMX is known for its model which aims to maximize efficiency of capital locked in the protocol to facilitate spot and perpetual trading.
The GMX project is spearheaded by a team of experienced developers and blockchain experts who are committed to making GMX a leading copyright. The project operates on a governance model that ensures transparency and accountability.
GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades. GMX is the native utility and governance token.
GLP’s price is contingent on the price of its underlying assets, as well as the exposure GMX users have toward the market. Most check here notably, GLP suffers when GMX traders short the market and the price of pool assets also decreases.
In conclusion, GMX is a promising copyright that offers a range of unique features and innovative technology. With its strong community, committed development team, and clear vision for the future, GMX is well-positioned to make a significant impact in the digital asset landscape.
Minted GLP tokens must be held for a minimum of 15 minutes before they can be redeemed. More info about GLP mechanics can be found here.
The protocol is able to provide dynamic pricing thanks to Chainlink Oracles, and aggregation of price data from exchanges with high volumes.