What GMX is all about
GMX launched in late 2021 as a permissionless perpetuals DEX. No accounts, no deposits - just connect your wallet. Arbitrum's fast and cheap rails made it the perfect home, and growth followed quickly. It became a flagship example of no-intermediary DeFi trading.
How it works today
On GMX, traders swap assets or open leveraged long/short positions against liquidity pools, not an order book. Chainlink oracles drive the pricing, so slippage stays minimal. Most action lives on Arbitrum, with lighter traffic on Avalanche. Supported tokens include BTC, ETH, SOL, ARB and more, with leverage up to 100x.
Token mechanics and rewards
GMX doubles as governance and a reward vehicle. Stakers earn protocol fees, esGMX rewards and multiplier points that compound returns. GLP providers supply liquidity and share in fees, while GM vaults deepen pool capacity. More than 75% of GMX supply is staked, locking community alignment with protocol growth.
Standing today
GMX is among the largest Layer 2 derivatives DEXs. Liquidity pools hold hundreds of millions, all transparent and on-chain. Traders, bots and contracts interact with the same pools. Fees, volumes and liquidity can be reviewed publicly anytime. Usage remains consistent, making GMX a cornerstone of Arbitrum's DeFi scene.
Strengths & weaknesses at a glance
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Final word
GMX on Arbitrum shows what DeFi derivatives can achieve: open, efficient and transparent markets. With wallet-first access, deep liquidity pools and a strong rewards system, it empowers traders directly. Risks exist in leverage and regulation, but GMX remains one of DeFi's leading perpetuals DEXs.