New Passo a Passo Mapa Para copyright gmx.io
New Passo a Passo Mapa Para copyright gmx.io
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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.
Traders also benefit from a GLP liquidity pool that allows them to quickly exchange large amounts of assets without price volatility, more accurately predicting losses and profits for each trade and managing their money accordingly.
A leading decentralized perpetual protocol has not exactly been established yet in my opinion. Interest in the copyright market is manifestly fading in the midst of the current bear market.
As a trader, his target is all the assets in the GLP liquidity pool, which successive successful predictions can loot. The GLP’s liquidity provider, the source of revenue, is all the traders who open positions at the door.
So why would traders still want to use the GMX protocol for trading? Because the market depth of GMX is excellent, and there are no slippage problems. Because the profit of trading is from the spread trading, using the order book trading or AMM liquidity pool trading will be due to a large amount of buying or selling to increase costs or reduce profits, but through the GLP liquidity pool to open.
While these platforms offer privacy and convenience, users must weigh these benefits against the potential security risks.
Don’t miss our comprehensive article on DeFi perpetual exchanges and their significant impact on the forthcoming bull market in the copyright space.
But are the traders winning, or are the liquidity providers at GLP making money? Long-term performance data gives us the answer. In the case of Arbitrum, the most heavily traded market, as of October 2022, users of GMX for perpetual contract trading had accumulated losses of over $45 million.
Regarding protocol development, the GMX exchange has also issued GMX tokens. GMX tokens can be used for the protocol’s governance and staking, to adjust the rate structure and the weight of different copyright assets that affect the GLP liquidity pool, and to receive 30% of the transaction fees, funding rates, and clearing fees in the GLP liquidity pool. The proceeds are directly converted to ETH or AVAX.
With the protocol upgrade, users and liquidity providers should pay attention to the changes brought by the new version, including new terms of use, risk factors, and how to adapt to these changes to maximize benefits.
Some of the platform’s advantages over competitors include low swap fees and the ability to conduct trades with zero price impact.
The GMX exchange is a decentralized platform specializing in spot and perpetual trading. What sets it apart is its seamless combination of DeFi leverage trading and derivatives trading, offering up to 50x leverage on popular cryptocurrencies.
Users can go “long,” “short,” or simply swap tokens on the exchange. Traders go long on here an asset when they expect its value to increase, and they short in expectation of being able to buy an asset back at a lower price.
The fast completion and zero price shock nature of GMX exchange assets make it ideal for high-volume OTC transactions. Still, the downside is that the GLP liquidity pool has a small selection of assets, which limits its potential for non-popular, long-tail assets.