Cover Image for GMX


GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades. Perpetual contract traders can use up to 30X leverage on the GMX exchange. Users benefit from a unique token incentive mechanism to compound their yield by staking tokens and participating in the protocol revenues.










Token Strength.

Token Utility:

Staking: Holders of $GMX can stake their tokens and earn 30% of the protocol fees generated by the GMX protocol.
Boost Yield: Stakers of $GMX can also earn $esGMX and Multiplier Points (MPs) to further boost their yield.
Voting Rights: Owning $GMX grants voting rights to participate in the governance of the GMX protocol.

Staking: Holders of $esGMX can stake their tokens and further compound their $GMX staking yield.
Vesting: $esGMX can be vested and converted to $GMX after one year, allowing for long-term investment and governance participation.

Automatic Staking: $GLP (LP token) holders are automatically staked and earn 70% of the protocol fees generated by the GMX protoc

Demand Driver:

Token holder incentives
$GMX and $esGMX token holders are incentivized by governance rights and rewarded in $esGMX, MPs, and 30% of the protocol fees. This provides an attractive opportunity for investors seeking a long-term hold and passive yield.

Liquidity provider rewards
Liquidity providers are incentivized to supply collateral and increase GLP pool size by receiving $esGMX and earning 70% of the protocol fees. This provides a lucrative opportunity for yield farmers looking for short-term gains. Overall, the staking mechanism creates a strong demand for both $GMX and $esGMX tokens.

Value Creation:

GMX protocol offers decentralized trading with low swap fees, zero price impact trades, and enhanced security. Traders can leverage up to 30X for perpetual contracts and stake tokens to earn more yield, creating a sustainable ecosystem. GMX is a valuable alternative to centralized exchanges, providing unique token incentives, increased security, and lower fees for optimized trading experience.

Value Capture:

Value accrual to token:
$GMX holders benefit from governance rights, allowing them to have a say in community funds. Additionally, $esGMX can be converted to $GMX after 1 year, providing long-term value by lowering circulating supply.

Value accrual to protocol:
GMX protocol generates revenue in $ETH/$AVAX, which is allocated to the treasury. This relieves $GMX emissions and provides a stable funding source for future development.

Business Model:

The business model for the GMX:

Revenue comes from:
Swap fees: 0.2%-0.8%
Trading fees: 0.1% of position size
Execution fees: collected in $ETH/$AVAX
Liquidation fees: depends on collateral type
Borrow fees: varies with GLP pool utilization

Revenue is denominated in:
$ETH/$AVAX and other applicable currencies

Revenue goes to:
Token holders who receive all platform fees
Increased protocol revenues increase token holders' value


Protocol Analysis.

Problems & Solutions
High swap fees and price impact on centralized spot and perpetual exchanges limit traders' profitability. Lack of incentives and limited leverage options also hinder users' yield.

GMX offers a decentralized exchange with low swap fees and zero price impact trades, supporting up to 30X leverage for perpetual contract traders. Users can earn compound yield by staking tokens and participating in protocol revenues through a unique token incentive mechanism.
Perpetual Protocol: a decentralized trading platform that enables users to trade perpetual contracts with up to 10x leverage.
Gains Network Protocol: a decentralized finance (DeFi) platform that allows users to earn passive income through staking, liquidity providing, and yield farming.

Investment Take

... coming soon

Tokenomics Timeline.

  1. 2021-09-13


    Token Generation Event Deployment on Arbitrum One network

  2. 2022-01-02

    Avalanche network deployment

    Deployment on Avalanche network

  3. 2022-10-21

    GMX Labs entity

    Independent software development and marketing entity responsible for the development of the open-source code of the project, front-end and back-end.




Ecosystem Users.