The technology underpinning GMX has solidified its position as a leader in the decentralized derivatives products arena, thanks to its distinctive value proposition built on three key pillars:
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Robust value accrual for GMX token holders and liquidity providers in ETH.
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Non-Inflationary tokenomics model - GMX employs a tokenomics model that avoids the pitfalls of inflationary token incentives commonly seen in the "farm and dump" strategies prevalent in many other platforms. This sustainable approach, termed the GMX Liquidity Model (GLP), does not rely on inflating token supplies to incentivize users.
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Low Trading fees and its unique feature of zero price-impact trades across a diverse array of assets, enhancing its protection to traders.
Interestingly GMX’s capital efficiency model optimizes the utilization of capital locked within the protocol. This is very different to numerous decentralized exchanges which rely on individual single-asset pools, GMX adopts a unified multi-asset pool known as GLP. This versatile pool houses several major cryptocurrencies and stablecoins, facilitating seamless trading for a wide spectrum of assets.
But I think GMX's real distinctiveness is its choice to reward participants with $ETH on Arbitrum and $AVAX on Avalanche, this is a real change from the typical practice of rewarding users with native tokens. This approach really sets GMX apart from other decentralized exchanges currently available in the market in my opinion and gives them a bit of an edge. Show Less
