The Evolution of GMX: From v1 to the Anticipated v2

Jul 17, 2023

The Evolution of GMX: From v1 to the Anticipated v2

Jul 17, 2023

The Evolution of GMX: From v1 to the Anticipated v2


GMX, a key player in the decentralized finance (DeFi) sector, is about to unveil its next iteration, GMX v2. Before it's officially out, here's a quick rundown of what you need to know.


GMX: Setting the DeFi Stage


GMX's first version, tagged on social media as @GMX_IO, set a precedent in the world of decentralized derivatives trading. By allowing traders access to decentralized derivatives and a substantial 50x leverage on major crypto assets, GMX firmly established itself as a formidable presence.

The platform owes its success to the $GLP liquidity model, which offers no-price-impact trading along with exceptional tokenomics. This asset basket, composed of 50% stablecoins, acts as the counterparty for every GMX trade. At its zenith, $GLP contributed to half of the Total Value Locked (TVL) on the Arbitrum network.



The Dawn of GMX v2


GMX v2 is in its testnet phase with a mainnet release soon to follow. This upgrade comes with significant changes, including:

- A departure from the $GLP liquidity model

- The introduction of synthetic assets

- An overhauled fee structure


An intriguing feature of GMX v2 is its market structure, consisting of isolated pools. Each market can now include several pools, all containing an index token, long token, and short token. This design supports permissionless listings, a limitation of the previous $GLP model.


During its testnet run, GMX v2 trialed the $SOL trading. An example of its market structure is the SOL-USD market, which is divided into the ETH-USDC pool.


Another noteworthy enhancement is GMX v2's integration with Chainlink data feeds. This will offer users real-time and reliable data, catering to the platform's low-latency trading features.


Regarding the fee structure, GMX v2 has made critical modifications:

- A drop in open/close fees from 0.1% to 0.05%

- An adjusted funding fee supporting the less dominant side

- Incorporation of price impact considerations

GMX v2's DAO is currently examining a community proposal related to protocol fee adjustments, with details available on Messari.



GMX Price Insights

The $GMX token has garnered considerable attention, boasting:

- A growth rate exceeding 500%

- An All-Time High (ATH) of $91

- A current price of $60

- A market cap standing at $535M



Influential GMX Supporters

Prominent figures like @CryptoHayes and @Rewkang have continuously endorsed GMX. Not only has $GMX seen appreciation, but it also offers attractive staking rewards. A snapshot of influential GMX holders includes:

- @CryptoHayes, who initially procured 200,580 $GMX at $28.5 and continues to stake.

- Wallet 0x58f, possessing $GMX valued at $585K, purchased at an average of $29.3.

- Wallet 0x297, with $GMX worth $839K, demonstrates Dollar-Cost Averaging, having acquired the token in multiple phases since April.



For those interested in delving deeper, here are the links to the respective wallets:

- [0x534a0076fb7c2b1f83fa21497429ad7ad3bd7587](https://app.loch.one/home/0x534a0076fb7c2b1f83fa21497429ad7ad3bd7587)

- [0x58f5F0684C381fCFC203D77B2BbA468eBb29B098](https://app.loch.one/home/0x58f5F0684C381fCFC203D77B2BbA468eBb29B098)

- [0x297903a7B4181fCCb3A5673EF62A30100113b33E](https://app.loch.one/home/0x297903a7B4181fCCb3A5673EF62A30100113b33E)


In the dynamic realm of DeFi, GMX has undoubtedly made its mark, and with the v2 launch approaching, its trajectory in the sector is eagerly anticipated.


The Evolution of GMX: From v1 to the Anticipated v2


GMX, a key player in the decentralized finance (DeFi) sector, is about to unveil its next iteration, GMX v2. Before it's officially out, here's a quick rundown of what you need to know.


GMX: Setting the DeFi Stage


GMX's first version, tagged on social media as @GMX_IO, set a precedent in the world of decentralized derivatives trading. By allowing traders access to decentralized derivatives and a substantial 50x leverage on major crypto assets, GMX firmly established itself as a formidable presence.

The platform owes its success to the $GLP liquidity model, which offers no-price-impact trading along with exceptional tokenomics. This asset basket, composed of 50% stablecoins, acts as the counterparty for every GMX trade. At its zenith, $GLP contributed to half of the Total Value Locked (TVL) on the Arbitrum network.



The Dawn of GMX v2


GMX v2 is in its testnet phase with a mainnet release soon to follow. This upgrade comes with significant changes, including:

- A departure from the $GLP liquidity model

- The introduction of synthetic assets

- An overhauled fee structure


An intriguing feature of GMX v2 is its market structure, consisting of isolated pools. Each market can now include several pools, all containing an index token, long token, and short token. This design supports permissionless listings, a limitation of the previous $GLP model.


During its testnet run, GMX v2 trialed the $SOL trading. An example of its market structure is the SOL-USD market, which is divided into the ETH-USDC pool.


Another noteworthy enhancement is GMX v2's integration with Chainlink data feeds. This will offer users real-time and reliable data, catering to the platform's low-latency trading features.


Regarding the fee structure, GMX v2 has made critical modifications:

- A drop in open/close fees from 0.1% to 0.05%

- An adjusted funding fee supporting the less dominant side

- Incorporation of price impact considerations

GMX v2's DAO is currently examining a community proposal related to protocol fee adjustments, with details available on Messari.



GMX Price Insights

The $GMX token has garnered considerable attention, boasting:

- A growth rate exceeding 500%

- An All-Time High (ATH) of $91

- A current price of $60

- A market cap standing at $535M



Influential GMX Supporters

Prominent figures like @CryptoHayes and @Rewkang have continuously endorsed GMX. Not only has $GMX seen appreciation, but it also offers attractive staking rewards. A snapshot of influential GMX holders includes:

- @CryptoHayes, who initially procured 200,580 $GMX at $28.5 and continues to stake.

- Wallet 0x58f, possessing $GMX valued at $585K, purchased at an average of $29.3.

- Wallet 0x297, with $GMX worth $839K, demonstrates Dollar-Cost Averaging, having acquired the token in multiple phases since April.



For those interested in delving deeper, here are the links to the respective wallets:

- [0x534a0076fb7c2b1f83fa21497429ad7ad3bd7587](https://app.loch.one/home/0x534a0076fb7c2b1f83fa21497429ad7ad3bd7587)

- [0x58f5F0684C381fCFC203D77B2BbA468eBb29B098](https://app.loch.one/home/0x58f5F0684C381fCFC203D77B2BbA468eBb29B098)

- [0x297903a7B4181fCCb3A5673EF62A30100113b33E](https://app.loch.one/home/0x297903a7B4181fCCb3A5673EF62A30100113b33E)


In the dynamic realm of DeFi, GMX has undoubtedly made its mark, and with the v2 launch approaching, its trajectory in the sector is eagerly anticipated.


Other blog posts

Loch, Inc. © 2023

2261 Market Street,

San Francisco, CA 94114

The content made available on this web page and our mobile applications ("Platform") is for informational purposes only. You should not construe any such information or other material as financial advice in any way. All information provided on the Platform is provided on an as is and available basis, based on the data provided by the end user on the Platform. Nothing contained on our Platform constitutes a solicitation, recommendation, endorsement, or offer by us or any third-party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All content on this Platform is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Platform constitutes financial advice, nor does any information on the Platform constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the platform before making any decisions based on such information. In exchange for using the Platform, you agree not to hold us, our affiliates, or any third-party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the Platform.

Loch, Inc. © 2023

The content made available on this web page and our mobile applications ("Platform") is for informational purposes only. You should not construe any such information or other material as financial advice in any way. All information provided on the Platform is provided on an as is and available basis, based on the data provided by the end user on the Platform. Nothing contained on our Platform constitutes a solicitation, recommendation, endorsement, or offer by us or any third-party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All content on this Platform is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Platform constitutes financial advice, nor does any information on the Platform constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the platform before making any decisions based on such information. In exchange for using the Platform, you agree not to hold us, our affiliates, or any third-party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the Platform.

2261 Market Street,

San Francisco, CA 94114

Loch, Inc. © 2023

The content made available on this web page and our mobile applications ("Platform") is for informational purposes only. You should not construe any such information or other material as financial advice in any way. All information provided on the Platform is provided on an as is and available basis, based on the data provided by the end user on the Platform. Nothing contained on our Platform constitutes a solicitation, recommendation, endorsement, or offer by us or any third-party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All content on this Platform is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Platform constitutes financial advice, nor does any information on the Platform constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the platform before making any decisions based on such information. In exchange for using the Platform, you agree not to hold us, our affiliates, or any third-party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the Platform.

2261 Market Street,

San Francisco, CA 94114