GMX, Arbitrum’s most popular DEX, pays up to 47% on DOGE and SOL trading pools on an annual basis

The first model of the GMX trading platform, version 2, went live on Thursday, attracting just over $1.2 million for its liquidity pools in a slow start.

GMX, the most popular decentralized exchange on the Arbitrum Layer 2 network, allows users to trade spot and perpetual futures via 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 bet on price movements of major tokens such as Bitcoin (BTC) and Ether (ETH) using leverage.

V2 will exist alongside 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.

The 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 on higher prices, a short token betting on lower prices, and an index pool token.

As of Friday, the GM pools for DOGE are paying out up to 45% on an annual basis, while the Solana pool is paying out 47%. Prices are subject to change.

The launch of V2 could improve GMX’s prospects among retailers in an increasingly competitive market. Ultimately, attractive rewards and increased revenue could increase the value of GMX’s eponymous governance token gmx (GMX).

Data from DefiLlama shows that GMX rakes 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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