The first model of the GMX trading platform, version 2, went live Thursday, raising just over $1.2 million for its liquidity pools after a slow start.
GMX, the most popular decentralized exchange on the Arbitrum Layer 2 network, allows users to trade spot and perpetual futures through an on-chain interface at low fees. Part of its recent popularity can be attributed to the rise of Ethereum-based arbitrum, where GMX was able to offer traders a service that allowed them to use leverage to bet on the price movements of major tokens like Bitcoin (BTC) and Ether (ETH).
V2 will coexist with the current GMX platform. It expands the list of tradable assets to include alternative currencies such as Dogecoin (DOGE) at lower fees than version 1 to attract trading activity and drive revenue growth.
Liquidity on V2 is provided by individual GMX Market or GM pools. Liquidity providers are users who lock their tokens on GMX and are rewarded with a fee reduction for services such as leveraged trading, borrowing and swaps.
Initial GM pools include Solana (SOL), xrp (XRP), Litecoin (LTC), Dogecoin, and Arbitrum (ARB) on the Arbitrum network, and SOL, XRP, LTC, and DOGE on the Avalanche network.
A GM pool consists of long tokens supporting positions betting higher prices, a short token betting lower prices and an index pool token.
As of Friday, DOGE’s GM pools are paying out up to 45% on an annualized basis, while the Solana pool is paying out 47%. Prices are subject to change.
The launch of V2 could improve GMX’s prospects with retailers in an increasingly competitive market. Ultimately, attractive rewards and increased revenue could boost the value of GMX’s eponymous governance token gmx (GMX).
Data from DefiLlama shows GMX taking in over $447 million for Arbitrum and $74 million for the Avalanche network. Data shows that the platform has traded over $117 billion worth of tokens and generated $184 million in fees for its Arbitrum users alone.
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