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?
GMX respects the privacy of its users. The copyright uses advanced privacy features to ensure that user data is kept confidential and secure.
In terms of perpetual contracts, the GLP liquidity pool works interestingly, a bit like an AAVE type of lending agreement, where the trader deposits a portion of the assets in the GLP liquidity pool as margin, then lends a higher value asset from the GLP liquidity pool to bet against the GLP liquidity pool, paying a percentage of interest every hour before the margin is liquidated or the asset is returned.
This isolation prevents all liquidity providers from facing risk if one asset’s price is manipulated, as seen in past AVAX price manipulation attacks.
Arbitrum is a layer-2 blockchain which derives its security from the Ethereum network, which provides consensus and finality for Arbitrum transactions. In other words, Ethereum guarantees the validity of the rollup’s off-chain computation and data availability behind the computation.
While these platforms offer privacy and convenience, users must weigh these benefits against the potential security risks.
GMX is a decentralized exchange that supports spot and perpetual contract trading. It encourages users to deposit copyright assets into a liquidity pool to become market makers and earn transaction fees.
All copyright holders contribute to the Completa liquidity, whereas speculative traders and users with a net demand for buying and selling are responsible for most of the trading activity. However, there is often friction between the wants and demands of those who offer liquidity and those who buy and sell transactions.
Summary: Traders in highly regulated regions like the USA and China face increasing challenges in accessing copyright futures markets without identity verification.
Pelo lado da bolsa, a GMX pode acomodar Enorme liquidez isento ter muitos TVLs tais como o modelo AMM, graças ao uso de seu próprio modelo do pool por liquidez.
There are multiple competitors within the DeFi space that also offer perpetual futures. At the same time, there is the looming threat of centralized exchanges that will always have a portion of the market share.
GMX also supports perpetual contract trading with up to 30x leverage, zero spreads, and aggregated here oracle quotes to help traders reduce liquidation risk, more accurately control positions, and predict gains and losses.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.io.
The advantages of the GMX protocol model for users of exchange assets are apparent. Regarding transaction fee rates, GMX is the same as most other decentralized exchanges, around 0.3% of the total transaction amount. Still, regarding exchange rate stability, GMX outperforms almost all of its competitors in the market.