Os Princípios Básicos de gmx.io copyright
Os Princípios Básicos de gmx.io copyright
Blog Article
We briefly discuss below the advantages and disadvantages of the GMX protocol for three types of users: users of exchange assets, liquidity providers, and speculative traders. What are the advantages and disadvantages?
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.
The development team of the GMX protocol is also very much in the style of Web 3, and the members are all anonymous, so no one knows who they are yet, but the only thing for sure is that they have made a great product. According to the list of members of the social software Telegram, the GMX team consists of the following members (all names are displayed in Telegram)
Please ensure that you exercise sufficient risk management, have done your own research in regards to GMX’s fundamentals, and fully understand the project before opting to trade the token.
It is easy to see that the GMX protocol is very tempting for liquidity providers. They only need to deposit their copyright holdings to earn a return, and there are no infrequent losses.
Liquidity providers can deposit single copyright to obtain GLP tokens or redeem previously deposited copyright with GLP tokens. GLP website liquidity pools are immune to impermanent loss problems because the quantitative rule constraints of algorithmic quotes do not constrain them.
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.
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.
GMX launched its first version, V1, on Arbitrum in September 2021. V1 employed a unique exchange model that allowed users to trade without the need to provide liquidity.
One of the DEXs that have surged in popularity due to the shift towards decentralized trading solutions is GMX, with the platform seeing its total value locked (TVL) rise from $108M to 501M in 2022, with $90M of this increase in just the last month alone.
Each time a trade is made, the gambler puts his margin chips on the table to guess the ups and downs, and the dealer charges an opening fee to play with him.
The opinions expressed in this blog do not constitute investment advice and independent financial advice should be sought where appropriate.
That way, transactions are processed simultaneously, and validators' random polling ensures that transactions are correct with statistical certainty. There are no blocks in this consensus mechanism, allowing immediate finalization and significantly improving the blockchain’s speed.
The goal of a liquidity provider is to passively deposit assets to earn income without the need for complex operations, which GMX does very well because GLP liquidity pools are used in a way that is not much different from depositing in a bank account. Liquidity providers are wary of erratic losses, which GMX also addresses, as GLP liquidity pools are single-asset deposits and withdrawals that do not convert the deposited assets into other assets due to price fluctuations.