Each staked esGMX token will earn the same amount of Escrowed GMX + ETH / AVAX rewards as a regular GMX token. Therefore, the only difference between GMX vs. esGMX is that esGMX are "locked" and regular GMX tokens are "unlocked" which means you can transfer/sell them at any time. What is the official GMX Website?
Although the GMX protocol demonstrates strong potential and a positive development outlook, the market is always uncertain. Therefore, users must conduct comprehensive analysis and risk assessment before making investment decisions.
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.
Completa staking value has topped $400 million and cumulative trading volume has surpassed $55 billion in the year since the GMX protocol was developed, making it the third-largest decentralized exchange on Arbitrum after Uniswap and Curve.
Since GLP stakers bear the risk of trades on the platform, 70% of platform fees are distributed to liquidity providers and the remaining 30% is given to GMX stakers.
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.
Traders opening positions on GMX trade against the pool, with GLP functioning as the counterparty to traders on the platform. While this poses a risk to liquidity providers in GLP, historically, traders have lost more than they have profited, which results in a net increase in GLP value.
GMX can be stored in a variety of digital wallets. These wallets offer a secure way to store GMX and other cryptocurrencies, and they often come with additional features such as encryption and backup options.
In that case, suddenly, a large number of users in the market using USDC stablecoins to buy LINK tokens in stock, the number of LINK tokens in the GLP liquidity pool will decrease dramatically, and the increased utilization of funds will prompt the contract to go long. The funding rate of LINK will rise rapidly. In other words, the price impact of large transactions on the liquidity pool is still there, but the cost is passed on to traders as funding rates.
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There are multiple competitors within the DeFi space that also offer perpetual futures. At the same time, there is the looming threat of centralized exchanges that will always have a portion of the market share.
Protocol revenue is split 70/30 between $GLP and the other protocol token $GMX. In addition to getting the larger share of protocol revenues, $GLP holders also get all the collateral when positions are liquidated which leads to a fluctuating but over-time growing inflow of revenue.
On AMM, users trade against a pool of tokens known as a liquidity pool. AMM users supply liquidity pools with copyright tokens, whose prices are determined by a constant mathematical formula.
Risk Warning: Digital asset prices are subject to high market risk and price volatility. The value of your investment can go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and copyright is not liable for any losses you may incur. Past performance is not a reliable predictor check here of future performance.