GMX (Thread)

DeFi $GMX DEXLeverage Trading

Ever imagined being able to open leverage positions directly from your wallet?

Here comes @GMX_IO! Starting as Gambit Financial, the project enables the decentralized trading of perpetual futures on $BTC, $ETH, $LINK, and $UNI for up to 30x leverage on @arbitrum and @BinanceChain without slippage.

GMX Overview

Enticing customers with perpetual (perps) futures is done without an orderbook, trades can be made at the current oracle price (limited to $LINK price feeds) through a shared liquidity mechanism – $GLP. The network is live on both @arbitrum and $AVAX

GMX platform utilizes two tokens: $GMX for governance, utility, and accrues 30% of the platform’s generated fees; $GLP is the main source of liquidity and accrues 70% fees.

The platform launched shortly after @arbitrum was opened to the public.

Security-wise, $GMX contracts have been audited by ABDK consulting. There were two major critical findings: swap function could be called by anyone (CVF-42) and wrong argument passed the function of withdrawing funds (CVF-51). The report could be reviewed here.

https://github.com/gmx-io/gmx-contracts/tree/master/audits

Partners

@InsurAce_io → risk protection for digital asset security

The following information are taken from https://medium.com/@vikram.arun/gmx-the-trading-platform-of-the-people-by-the-people-for-the-people-c4856897478#:~:text=GMX%20is%20a%20spot%20and,tradable%20assets%20on%20the%20platform.

Perps are the main source of liquidity and trading activity in crypto with volume for BTC and ETH 10x over spot. GMX distributed ALL trading fees to $GMX and $GLP stakers. This creates an economic flywheel to increase liquidity, margin trading volume, and fees.

Comparing decentralized to centralized perps, such as @binance Futures, @FTX_Official, and @krakenfx, CEX do $2T+/month while decentralized platforms is minisculed, merely doing $100B/month.

In the medium post, @vik_runa annualized the platform’s generated fees using the most recent week as a run date with 50% paid to GLP holders in ETH, 30% to GMX stakers, and 20% for price floor fund.

Additionally, Vikram did a valuation on the price of $GMX itself through the total perps volume and GMX share within the eventual DeFi volume using multiples as a framework.

Tokenomics

GMX tokens can be bridged between $ETH and @arbitrum. Staking GMX would receive the user these types of rewards: escrowed GMX – staked for rewards or vested to become actual GMX tokens (1-year period), multiplier points – compounding, and ETH reward.

The following are the monthly distribution rate for escrowed $GMX token:

100,000 stakers
100,000 $GLP hodlers
50,000 GLP hodlers in $AVAX (Jan 2022 - Mar 2022)
25,000 GLP hodlers in $AVAX (Apr 2022 - Dec 2022)

The $GMX token has a floor price fund in $ETH and $GLP from GMX/ETH liquidity pair fees and 50% of funds through $OHM bonds (other 50% for marketing). Floor price fund surplus is used to buyback and burn GMX if the floor price fund to total supply is less than market price.

Total supply of $GMX is currently unknown since it depends on the number of tokens that get vested and marketing/partnerships. Forecasted max supply, though, is 13.25M with the following distribution. Tokens for teams are distributed linearly over 2 years.

Note: more could be minted through governance if it is required for new projects.

The price of $GLP itself is dependent on the price of the tokens in the dashboard. https://gmx.io/dashboard

State of GMX

The total AUM for GMX is $227M, consisting of stake GMX in all chains $154.89M and stake GLP in $AVAX $72.17M with the GLP pool. The current long position is relatively 2:3 towards the short position of writing.

Total fees accrues are $6.6M with the $5B in total volume. The floor price fund is $4M. These are the tokens currently supported by the protocol.

Following the #RussiaUkraine situation, the current total open interest is down from the previous block, $7.4M previously was $8.8M.

Both the number of unique users and new users follows a general linear uptrend. Indicating that decentralized derivatives platform is a currently growing DeFi alpha.

GMX is currently a rising star in social media with extremely high growth. Conversely, the Github repository has been through a period of high commits, though that is not the case now. (data from icoholder.com)

Roadmap:

Possible fee tiers discount similar to $FTT (20,000 GMX/month)
Referral program (10,000 GMX/month)
GMX Blueberry Club – NFT project (5,000 GMX/month)