What is GMX Token? Should I invest in GMX Token?

What is GMX Token? GMX Token is a prominent project that many investors are interested in in the cryptocurrency market. With the goal of improving the derivatives and spot trading experience, GMX has attracted attention thanks to its unique operating model.

Therefore, in this article, AZCoin will provide you with a comprehensive view of GMX Token, from its operating model, development team to detailed information about the token and factors that determine whether to invest in GMX Token or not.

What is GMX Token?

GMX is a DEX platform that operates on two blockchains, Arbitrum and Avalanche. Developed to provide spot and derivatives trading services with up to 30x leverage, GMX allows users to trade assets flexibly and cost-effectively. In particular, the platform doesn’t encounter slippage or funding rate costs thanks to its unique GLP liquidity model.

The GMX protocol was first launched on Arbitrum in September 2021 and then expanded to Avalanche in early 2022. This makes GMX a strong competitor in the derivatives trading space, along with platforms such as dYdX and Perpetual.

How does GMX work?

GMX operates on the GLP Pool model, where users can trade with low fees and no risk of slippage. The exchange uses a separate liquidity pool model and trading prices are determined by Chainlink’s oracles, using TWAPs (Time Weighted Average Prices) from major DEX.

Users can trade with up to 30x leverage on GMX by borrowing from a large liquidity pool. GMX allows spot and derivatives trading with low transaction costs and no funding rates, which minimizes the risk of liquidation.

Project team, investors and partners of GMX

Project team

The GMX development team is currently anonymous, which is quite common in the DeFi space. While there isn’t much information about the team members, they have proven their capabilities through two previous successful protocol launches, XVIX and Gambit. AZCoin will update more information when there are new updates about the project team.

Investors

The GMX project has attracted investment from prominent industry figures such as Arthur Hayes, founder of BitMEX. However, information about the specific investment amount isn’t public.

Partners

GMX also collaborates with many strategic partners such as Decentralized Finance Dashboard (Defi Pulse, Defi Llama), DEX Aggregator (Open Ocean), Decentralized Trading Protocol (DODO) and Yield Optimizer (Yield Yak).

Outstanding advantages of GMX

GMX is a DEX that is receiving great attention from the crypto community thanks to the following outstanding advantages:

Low trading costs

One of the most prominent advantages of GMX is its ability to provide low-fee and zero-slippage trading. Thanks to the GLP Pool model and the use of Chainlink oracles, GMX helps to minimize trading fees and eliminate slippage, which is a great benefit for traders and liquidity providers.

High leverage

GMX allows trading with up to 30 times leverage on collateral, allowing users to make large trades with a smaller investment capital. This opens up opportunities for traders to increase profits without having to invest a large amount of capital. In particular, GMX  zero-funding rate model helps to minimize the costs associated with maintaining trading positions.

High liquidity

GMX attracts a large amount of liquidity thanks to the GLP Pool model, where liquidity providers can deposit their assets into the pool and receive GLP tokens in return. The presence of a large amount of liquidity allows GMX to handle large volume transactions without experiencing slippage or lack of liquidity.

Attractive rewards

Liquidity providers on GMX receive 70% of the trading fees on the platform in the form of ETH or AVAX, depending on the chain they provide liquidity to. At the same time, GMX holders also receive 30% of the project revenue. In addition, GMX also provides incentives such as esGMX and MP to encourage long-term staking and increase rewards for investors.

Basic information about GMX Token

What is the GMX Token?

GMX Token is the primary governance and utility token of the GMX platform. Issued on two chains, Arbitrum and Avalanche, GMX Token is used to participate in project governance decisions, as well as to receive rewards from staking and providing liquidity.

Technical parameters

• Token code name: GMX
• Ticker: GMX
• Contract: 

Arbitrum: 0xfc5a1a6eb076a2c7ad06ed22c90d7e710e35ad0a

Avalanche: 0x62edc0692bd897d2295872a9ffcac5425011c661

• Token type: Utility, governance token
• Blockchain: Arbitrum, Avalanche
• Total supply: 13,250,000 GMX
• Circulating supply: 8,217,972 GMX

GMX Token allocation

With the total supply as above, GMX Token is allocated as follows:

• Retroactive for gambit users: 45.3%
• Liquidity on Uniswap: 15%
• Vesting funds from esGMX: 15%
• Exchange support funds: 15%
• Marketing, partners and community developers: 7.5%
• Development team: 1.9%

Where to Buy/Sell GMX Token?

Currently, GMX Token can be traded on best crypto exchanges such as Uniswap and other platforms that support ERC-20 and ARC-20 token trading.

GMX token storage wallet

GMX Tokens can be stored in ERC-20 and ARC-20 supported wallets, such as MetaMask, Trust Wallet or hardware wallets like Ledger and Trezor for safety and security.

Should I invest in the GMX Token project?

Investing in GMX Token can be an attractive opportunity, especially for investors looking for DeFi projects with unique operating models and high growth prospects. GMX has proven its ability to attract liquidity and generate stable revenue thanks to its efficient operating model and outstanding advantages.

Conclusion

Hopefully this article from AZCoin has given you a clear view of the GMX project and helped you make a wise investment decision. If you have any further questions or need more detailed information about GMX Token, please continue to follow the articles and updates from AZCoin.