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GMX: Decentralized Spot and Perpetual Exchange

Intermediate
DeFi
Altcoins
Sep 5, 2022
6 min read
0

The automated market maker (AMM) model is the most popular liquidity-provision setup used by cryptocurrency exchanges. It solves the main limitations of the order book model, and has become ubiquitous in the crypto industry. Some exchange platforms are now exploring innovative ways to improve on the default AMM setup. GMX is one such project. The decentralized exchange (DEX) has employed a unique multi-asset liquidity model that’s an interesting modification to the default AMM.

What Is GMX?

GMX (GMX) is a decentralized spot- and perpetual-trading crypto exchange whose users can benefit from its low swap fees and zero price impact trades through leverage trading and market making. GMX uses Chainlink oracles to source dynamic pricing info from a variety of exchanges.

The exchange provides services on the Arbitrum Layer 2 protocol and the Avalanche (AVAX) blockchain. More than three-quarters of the trading activity transpires on Arbitrum, with Avalanche providing a much lower volume of trade.

GMX Trading Activity and Number of Users by Platform (from July 1, 2022 – September 1, 2022)

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